• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Opinions Blurb

Nigerian Miracle? Banks collectively post an astronomical N544.8billion PAT in 2012. But that’s not all..

Ugodre Obi-chukwu by Ugodre Obi-chukwu
May 18, 2013
in Blurb
NDIC: Bank Depositors Paid N73.5Billion Dividend In 2012 – NDIC
Share on FacebookShare on TwitterShare on Linkedin

Someone once told me only Nigerian banks reverse their fortunes in such a short time and by such gigantic margins that you beg to wonder. An Ugometrics survey  of 17 of the biggest Banks in Nigeria reveals Nigerian Banks made a total of N544,865,446,000 for the period ending December 2012. This reveals a remarkable recovery from 2011 which was characterized by write offs. In 2011 bank profit after tax was N87,931,131,000 only, representing a whopping 519.7% increase. This is almost unheard of considering that most sectors in the economy, which banks incidentally depend on for their income saw very modest profitability growth.

The contributory factor to this earnings growth appears to have been the rise in operating profit as a percentage of operating income showing an improvement in efficiency of about 215%. In 2012, operating expenses sliced off 77% of operating income for the banks compared to 90% in 2011. That helped increase operating profit by 405% to N612.3billion when compared t0 N121.4billion posted in 2011. So whilst the banks have mostly reduced their loan losses (by an estimated 65%) their ability to contain cost relative to the income generated was immense.

Another interesting stat was tax which despite rising 193% to N71billion in 2012 was actually just 11.5% of PBT compared to 21.6% in 2011. It is important to note though that Nigerian banks have a knack for reversing fortunes made over years by just making a bad bet in one year. As the indices below reveals about 6 of the banks listed here make up over 70% of the PAT anyway. Therefore to me, the significance of this information only ends at the mention of it. It certainly doesn’t mean banks are currently a viable investment.

RelatedStories

Why your “house” is not an investment

Why your “house” is not an investment

July 29, 2019
Toothpaste brands in Nigeria

What we learnt comparing Close-Up and Oral-B Toothpaste

April 5, 2018

Other Notable Indices

  • The Big six, GTB, Zenith, ETI, FBNH, UBA, Access made up 74% (N402.8billion) of the combined profits
  • Collective Return on Average Asset was 2.5% 
  • Collective Return on Average Equity was 19.8%
  • Nigerian Banks managed a collective assets of about N23trillion, a 15.4% rise from 19.8trillion posted in 2011
  • Nigerian Banks have a combined equity as at December 2012 of N3trillion, compared to N2.5trillion in 2011
  • Total Deposits as at December 2012 was N16.5trillion 16% higher than N14.2trillion posted in 2011
  • The Big five GTB, Zenith, ETI, FBNH, UBA made up 52% (N8.56trillion) of the total deposits. Including ETI takes it up to N10.9trillion or 67%
  • Loans advanced was a combined N10trillion compared to N9trillion posted in 2011.
  • UBA, FCMB, Diamond, Union Bank, Enterprise all came back from losses totalling N118.5billion declared in the prior year. Union Bank was the highest declaring N82.5billion loss (2011) which it improved to N7.3billion profits in 2012
  • The Survey reviewed the following Banks/Holdco’s, Zenith Bank, GT Bank, FBN Holdings, UBA Group, Fidelity Bank, Access Bank, Diamond Bank, Skye Bank, Eco Transatlantic, Citi Bank, Standard Chattered, Stabic IBTC, Enterprise Bank, FCMB, Sterling Bank, Unity Bank, Union Bank
  • All are listed on the NSE except Citi Bank, Standard Chartered and Enterprise bank

Nigerian Banks 2012 Data

Follow the link below for full data listing the banks side by side

SUMMARY OF COMBINED FINANCIAL PERFORMANCE OF 17 NIGERIAN BANK 2012/2011 FY

Tags: Deepdive
Ugodre Obi-chukwu

Ugodre Obi-chukwu

Ugo Obi-Chukwu "Ugodre" is the Founder, Publisher, and Chief Analyst of Nairametrics, a leading business and financial news online platform in Nigeria. Ugo is also the Chief Editor of the Nairametrics “Blurb” Opinion pages. Follow Ugodre on Twitter @ugodre and Instagram @ugodre Email: ugodre@nairametrics.com

Related Posts

Why your “house” is not an investment
Markets

Why your “house” is not an investment

July 29, 2019
Toothpaste brands in Nigeria
Metrics

What we learnt comparing Close-Up and Oral-B Toothpaste

April 5, 2018
Saving Money
Financial Literacy

11 money saving apps you need to download now

March 23, 2018
Jessica Castro via Unsplash
Spotlight

Mouka Foam Vs Vitafoam; We have one clear winner

March 22, 2018
Waste Management and Recycling in Nigeria
Small Business

Recycling: How these small businesses make millions selling aluminium monthly

March 19, 2018
GTBank announces close period ahead of Q3 2019 results
Blurb

Digging into GTB’s Monstrous 2017 result

March 16, 2018
Next Post

5 Major Tips That Can Help Secure A Bank Loan In Nigeria

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Meta cracks down on Facebook content fraud, deletes 500,000 accounts in half-year 2025 
  • Dangote submits paperwork to begin construction of deep seaport in Ogun state 
  • FRSC launches redesigned website to improve service delivery nationwide 

Follow us on social media:

Recent News

Meta announces Llama impact grant for Sub-Saharan African Startups, researchers

Meta cracks down on Facebook content fraud, deletes 500,000 accounts in half-year 2025 

July 15, 2025
Aliko Dangote makes TIME100 world’s most influential philanthropists list 2025 

Dangote submits paperwork to begin construction of deep seaport in Ogun state 

July 15, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics