By BUKOLA IDOWU, Lagos
Nigerian banks with international banking license are pulling in profit from their subsidiaries outside the country, with four out of the five banks licensed to do business internationally raking in N47.069 billion from their subsidiaries.
Guaranty Trust Bank, Zenith Bank, Access Bank and United Bank for Africa last year had their subsidiaries outside the country contributing to their profit in 2016.
GTBank, in its 2016 financial year, recorded a profit after tax of N132 billion, while Access Bank, Zenith and UBA recorded profit after tax of N71.4 billion, N129.65 billion and N72 billion respectively during the 2016 financial year.
UBA raked in the highest, with 18 of its African subsidiaries outside of Nigeria jointly contributing over 32 per cent to its revenue.
The results released showed that of the 18 UBA subsidiaries in Africa, 16 were profitable, while the remaining two subsidiaries showed strong prospect for becoming profitable in 2017, as the businesses recorded significant market penetration in 2016.
A cumulative profit after tax of N19.12 billion came from its operations in Ghana, Burkina Faso, Benin Republic, Uganda, Kenya, Senegal, Mozambique, Chad and Tanzania.
According to the bank, the feat achieved by the subsidiaries was an improvement compared to 2015 financial year, when the businesses cumulatively contributed a quarter of the revenue.
The group managing director, UBA Plc, Mr. Kennedy Uzoka, who had direct responsibility for the subsidiaries whilst he was the deputy managing director, before he was appointed to his present position in 2016 expressed delight at the performance of the subsidiaries.
Uzoka successfully transformed the businesses within three years, raising the contribution of the subsidiaries to almost a third of group’s revenue, from barely 20 per cent in 2013.
UBA was followed by Zenith Bank which made N11.26 billion from its operations in Ghana, United Kingdom, Sierra Leone and Gambia.
GTB in the one year period made N9.81 billion from its operations in Ghana, Sierra Leone, Liberia, United Kingdom, Gambia, Cote d’ Ivoire and Kenya while Access Bank made N6.88 billion from its subsidiaries in United Kingdom, Ghana, Rwanda, Congo, Zambia and Gambia.
Subsidiaries in Ghana earned the most for the banks, contributing 50.2, 52.8, 60.4 and 82.8 per cent of the profit for GTBank, UBA, Access and Zenith respectively.
GTBank made N4.92 billion from its Ghanaian subsidiary while UBA and Access Bank made N10.28 billion and N4.16 billion respectively. Zenith Bank’s Ghana branch raked in N9.32 billion in 2016.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from LEADERSHIP Nigeria Newspapers. Contact: email@example.com
METRO6 hours ago
JUST IN: Shopping Complex Collapses In Abuja, One Killed, 12 Trapped
NEWS18 hours ago
2019: Saraki Will Make Nigeria Envy Of Other Nations –Lawmaker
NEWS11 hours ago
Serena Williams Learned Just Before Johanna Konta Loss That Half-Sister’s Killer Had Been Freed
FEATURES17 hours ago
No Rule Says Senate President Must Be From Majority Party – Hon Jev
COVER STORIES19 hours ago
Kogi Commences Salary Payment Ahead Of Eid-el-Kabir
POLITICS3 hours ago
Chidoka Emerges Special Adviser To Secondus
NEWS19 hours ago
NASS Invasion: Senators To Sponsor Motion Demanding For Judicial Probe
NEWS9 hours ago
Change Of Formation: MNJTF Gets New Commander