Eleven banks in the first nine months of 2018 made joint profit after tax (PAT) of N621.79 billion, a 15.3 per cent increase in profit compared to what they jointly made in the comparable period of 2017, as loans were on the decline.
A look at the nine months results of Zenith Bank Plc, Guaranty Trust Bank Plc, Ecobank Transnational Incorporated Plc, FBN Holdings, Sterling Bank Plc, Fidelity Bank Plc, Access Bank Plc, Diamond Bank Plc, United Bank for Africa Plc, Stanbic IBTC Holdings Plc and Wema Bank Plc showed that while a few banks were able to record increases in their loans and deposits, many, particularly the big banks, recorded a decline.
While the decline in loans had impacted their interest income, profitability remained on the rise save for a few who recorded slight decline in profit. This had seen the gross profit from the 11 banks rise from N539.377 billion which was recorded in the nine months period ended September 30, 2017 to N621.79 billion as at the end of the September 30, 2018 period.
Total assets of the 11 banks had grown slightly by 3.7 per cent from N35.16 trillion as at December 2017 to N36.496 trillion as at September 30, 2018. This was due to a slight decline in joint loans which stood at N14.13 trillion as at the end of the 2018 nine months period compared to N14.76 trillion which it was at the end of the 2017 financial year.
Deposits was on the rise totaling N23.17 trillion for the 11 banks as at September 30, 2018, a 5.8 per cent improvement over the N21.897 trillion deposit from customers recorded as at December 31, 2017. With the exception of Zenith Bank and Stanbic IBTC Holdings, the other banks recorded increases in their deposit base. The deposit base of Zenith Bank had declined from N3.437 trillion recorded as at December 2017 to N3.275 trillion, as its loan book continued to decline, dropping to N1.824 trillion from N2.1 trillion which it was at the end of the 2017 financial year.
For Stanbic IBTC, although deposits dropped, its loans and advances was on the rise. Deposits had dropped slightly by 2.02 per cent from N753.64 billion to N738.35 billion at the end of the 2018 nine months period. Its loans and advances to customers however rose by 15.6 per cent to N429.99 billion from N372.08 billion. FBN Holdings, had the largest deposit of N3.38 trillion an improvement over N3.14 trillion which it had at the end of the 2017 financial year although its loans and advances to customers dropped to N1.924 trillion from N2.001 trillion.
Likewise, the deposit base of Access bank and Ecobank Transnational Incorporated had grown to N2.47 trillion and N4.75 trillion at the end of the 2018 nine months period from N2.24 trillion and N4.65 trillion which it was at the end of the 2017 financial year. Ecobank’s credit to its customers had however dropped to N2.64 trillion from NN2.86 trillion while that of Access Bank dropped to N1.97 trillion from N1.99 trillion.
The loan book of GTBank was also down to N1.27 trillion from N1.44 trillion while that of UBA was down to N1.59 trillion from N1.65 trillion GTBank and UBA had grown their deposit base during the nine month period recording N2.23 trillion and N3.17 trillion respectively as at September 30, 2018.
Fidelity Bank, Wema Bank and Sterling Bank had all recorded increases both in their deposit base and loan book. With its deposit base rising by 26.5 per cent to N980.83 billion from N775.27 billion, Fidelity Bank had grown its loan book by 8.02 per cent to N830.37 billion. The loan book of Sterling Bank had also risen to N662.06 billion from N598.07 billion as deposits from customers rose to N723.27 billion as at September 30, 2017 form N684.83 billion which it was as at December 31, 2017.
Also, Wema Bank had seen its customers’ deposit rise by 44.4 per cent from N250.92 billion which it was at the end of the 2017 financial year to N362.27 billion, while loans and advances to customers rose to N244.79 billion, a 16.1 per cent improvement over N210.86 billion loan book it had as at the end of the 2017 financial year.
For Diamond Bank, both its loan book and deposit base had witnessed declines as deposits from customers dropped to N1.06 trillion form N1.16 trillion while loans and advances to customers dropped to N730.25 billion form N755.5 billion.
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