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Research Analysis

Tracker: Bank results released in 2017

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The table below is a summary of results released by banks quoted on the Nigerian Stock Exchange. The list is limited to banks in the Nigerian Stock Exchange and is updated as new results are published.

This list includes the following;

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  • Gross Earnings of Nigerian Banks
  • Pre-tax profits of Nigerian Banks
  • Profit after tax of Nigerian banks
  • Taxes charged to all Nigerian Banks
  • Earnings Per share of Nigerian Banks

The above is stated as current year and prior year.

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Patricia

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

9 Comments

9 Comments

  1. Uche Nnamdi

    April 30, 2017 at 5:13 pm

    Please include Skye Bank plc

    • Nairametrics

      April 30, 2017 at 7:02 pm

      Skye Bank is yet to release results.

  2. Seun (@ogus)

    May 1, 2017 at 8:14 am

    Summary of 2017 Q1 would be nice also .

  3. Anonymous

    May 2, 2017 at 1:22 pm

    Pls include the following banks – Citibank & Standard Chartered Rand Merchant Bank as well as Suntrust bank. It will be useful to know if these banks are having a ball or a torrid time.

  4. teingo

    May 11, 2017 at 1:38 pm

    Very useful info. Thank you for this. Please kindly add dividend column to this table. I would like to know if Sterling Bank is paying any dividend this year.

  5. Anonymous

    May 13, 2017 at 8:50 am

    Include FirstBank, please.

  6. Martins Falokun

    May 23, 2017 at 5:53 pm

    Please kindly make provision to enable export to excel. Thanks

  7. Samuel

    June 8, 2017 at 10:38 am

    Good job but I would like to suggest that you should add additional columns such as Non performing loan(NPL) ratio, Liquidity ratiop, dividend per share(DPS) and outstanding shares

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Big 4 earn N 7.53 billion auditing Nigeria’s biggest companies

A ranking of which audit firms earned the most of 25 of the largest companies on the NSE.

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Big Four

The four biggest audit firms in Nigeria PWC, KPMG, Deloitte, Ernst and Young earned a sum of N7.53 billion as audit fees from Nigeria’s most capitalized firms in 2019.     

The fees were earned by auditing 25 of the largest companies on the Nigerian stock exchange. According to data from Nairalytics, a research arm of Nairametrics, the four firms increased their revenue by 5% compared to N7.17 billion generated from the same companies in 2018. Nairalytics based its analysis on quoted companies as they are by law required to publish their annual reports. Private companies are not mandated to publish their annual reports in Nigeria.  

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Competition between the big 4 audit firms as they are classified intensified in the period under review as our research showed that PWC carted with the highest share having earned auditing some of the largest companies on the stock exchange. KPMG was a close second and is often thought to be the largest audit firm in the country by revenue when you add several other privately listed firms that they audit.  

However, in this analysis, we looked at figures contained in the audited accounts of the largest 25 companies on the stock exchange who make up over 80% of market capitalization.  The companies include, Access Bank, GT Bank, Dangote Sugar, Dangote Cement, Zenith Bank, UBA, Guinness Nigeria, NB Plc, Intl. Breweries, BUA Cement, NASCON, Dangote Sugar. Others include, Fidelity Bank, Total Plc, Flour Mills Plc, Transcorp, Seplat, Sterling Bank, FBNH, Stanbic IBTC, Union Bank, Custodian Investment, Nestle, Unilever and FCMB.

READ MORE: NNPC releases audited financial statements, refineries record losses of N154 billion

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PWC  

PWC grew its income from N3.39 billion in 2018 to N3.59 billion in 2019. Its earnings are diversified across banking, brewery, consumer goods and cement sectors. The banking sector contributed a significant 91.8% (N3.29 billion) of its total income, one of which includes GT bank, the most capitalized bank on the stock market. The audit firm received N791 million from the bank representing 23% of total revenue earned by the firm.  

PWC was on the books of MTN Nigeria in 2018, earning N271 million from auditing their accounts but has been replaced by another firm, Grant Thornton in 2019. However, it replaced that loss with a N389 million increase in income from banking between 2018 and 2019.  

Banking – 2018 N2.9 billion/ 2019 N3.2 billion.  

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Brewery – 2018 N98 million/2019 N98 million  

Cement – 2018 N39 million/2019 N114 million  

Consumer Goods – 2018 N71 million/2019 N80 million  

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Telecomm – 2018 N271 million/ 2019 Nil

Companies – Access Bank, FBNH, GT Bank, UBA, Guinness Nigeria, International Breweries, BUA Cement, Dangote Sugar, NASCON. 

READ ALSO: Some experts are uncertain of what to expect from money markets in H2 2020

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KPMG  

The international audit firm grew its earnings by 5.5% from its 8 clients on our list from N2.37 billion received in 2018 to N2.51 billion in 2019. The banking sector remained a dominant source of revenue for the audit firms with about 76% of total revenue accrued. Zenith Bank paid KPMG about N892 million in audit fees in 2019 representing 35.6% of the audit firms’ earnings auditing top firms. Zenith Bank is also Nigeria’s most profitable bank. KPMG also audited a diversified list of quoted companies across the banking, cement, consumer goods and oil & gas sectors.  

Banking – 2018 N1.8 billion/ 2019 N1.88 billion.  

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Cement – 2018 N128 million/2019 N128 million  

Consumer Goods – 2018 N404 million/2019 N443 million  

Oil and Gas – 2018 N36 million/ 2019 N46 million  

Companies – FCMB, Stanbic IBTC, Union Bank, Zenith Bank, Lafarge, Flour Mills Plc, Unilever, Total Plc. 


EY  

Ernst and Young came third on our list with a total earning of N746 million in 2019 from five companies on our tracker list. The five companies include, Fidelity bank, Sterling bank, Custodian Investment, Transnational corporation and Seplat Petroleum.  

However, the firm’s earnings recorded a slight decline when compared to N752 million recorded in 2018. This was due to the reduction in audit fees received from Seplat Petroleum. EY only has two banks on its list and this includes Fidelity and Sterling Bank both contributing a combined N414 million in earnings last year.     

Banking – 2018 N413 million/2019 N414 million  

Oil and Gas – 2018 N180 million/2019 N170 million  

Others – 2018 N159 million/2019 N162 million.  

Companies –Fidelity Bank, Sterling Bank, Seplat, Transcorp, Custodian Investment 


Deloitte  

The oldest indigenous accounting firm in Nigeria earned a total of N691.6 million in audit fees in 2019 compared to N660 million in 2018. Surprisingly, Deloitte does not have any of the major banks included in our list but works with Ahmed Zakaria to audit the accounts of one of the largest cement company in the country, Dangote Cement. Other companies on the list include, Presco, Nigerian Breweries, and Nestle Nigeria.  

Deloitte in Nigeria is a merger between Akintola Williams and Deloitte Global.  

 Agriculture – 2018 N29 million/2019 N31.6 million  

Brewery –2018 N57 million/2019 N61 million  

Cement – 2018 N539 million/2019 N561 million.  

Consumer Goods – 2018 N35 million/2019 N38 million  

Companies – Presco, NB, Dangote Cement, Nestle.  


A look at what happened in 2017  

A similar study carried out by Nairametrics in 2017 showed that the big 4 audit firms earned a sum of N6.4 billion as audit fees in 2016 with PWC scooping the most earnings of N2.5 billion followed by KPMG with N2 billion. Ernst and Young also earned about N1.1 billion in 2016 and Deloitte earned N530.2 million in audit fees 

Patricia
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Market Survey: Price of tomatoes, palm oil, rice spike as traders lament low patronage

The survey found that major markets across Lagos state have been hit with low patronage.

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Alert: Tomato prices are up by over 80% in these Lagos markets

Prices of major household items such as tomatoes, palm oil, rice and several others have recorded significant increase across major markets, this is according to the latest household market survey carried out by Nairametrics Research.

The latest household survey conducted by Nairametrics Research Team, revealed that major markets across Lagos state have been hit with low patronage, as traders across complained of low sales due to alternate opening of the markets.

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Key Highlights

A big basket of round shaped tomatoes now sells for an average of N16,000 compared to N12,500 recorded in May, which indicates a significant 28% increase. The price of 25 litres gallon of locally made palm oil, which was sold for an average of N10,000 in May rose to an average of N10,750.

Meanwhile, the team found that the price of a big basket of Sweet potatoes reduced significantly by 46.7%, from an initial average of N15,000 to sell for an average of N8,000. Also, a big bag size of dry onions, which was sold for an average of N17,000 now sells for N16,500.

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The report also detailed other items that witnessed significant increase in price, items that recorded decrease in price, items that maintained initial prices, special markets and insights.

Items that witnessed price increase

Some of the items that recorded significant increase in price includes;

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  • A 25 litres gallon of locally made palm oil now sells for an average of N10,750. A 7.5% increase compared to N10,000 recorded in the previous month.
  • Also, a 5 litres gallon of locally produced palm oil also increased by 4.94% to sell at an average of N2,125 compared to an initial average of N2,025.
  • A big basket of round shaped tomatoes recorded a significant spike as it now sells for an average of N16,000. This indicates a 28% increase when compared to an initial average of N12,500.
  • Medium-sized basket of round shaped tomatoes that was initially sold for an average of N6,500, has increased by 46.2% to sell for an average of N9,500 while a small basket sells for an average of N6,000 compared to an initial average of N4,000.
  • A 50kg bag of Mama’s Pride, which was sold for an average of N19,375 in May now cost an average of N21,000 across the four markets.
  • A 50kg bag of Mama Gold now sells for an average of N21,125. A 3.68% increase compared to N20,375 recorded in May 2020.
  • A big bag size of Yellow maize spiked by 23.2% to sell for an average of N17,250 compared to N14,000 recorded in the previous month.
  • A big bag size of White maize also increased by 27.3% to sell for an average of N17,500. A significant change compared to N13,750 recorded in May 2020.
  • A single pack of 500g Bonita pasta that was initially sold for an average of N208 currently sells for an average of N220.
  • The smallest basket of Irish potatoes increased slightly by 4.4% to sell at an average of N1,567 compared to an initial average of N1,500.
  • A bag of Ijebu garri currently sells for an average of N13,375. A 2.88% increase compared to N13,000 recorded in March.

 

Items that recorded decrease in price

Despite the increase recorded in the price of major household food items, a few items recorded a decline in price

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  • A big sized tuber of yam fell from its thousand mark to sell for an average of N950. This is 24% reduction when compared to an initial average of N1,250.
  • The price of a big basket of Sweet potatoes recorded decline as it now sells for an average of N8,000 compared to an initial average of N15,000 recorded previously.
  • A small basket size of Sweet potatoes also reduced in price, as it moved from an average of N1,000 recorded in May to sell for an average of N633.
  • The price of a big bag of dry onion is currently sold for an average of N16,500. A 2.9% decrease compared to an initial average of N17,000.

Items that maintained initial price

Household items that maintained their initial prices include Milk, Cocoa beverages, vegetable oil, and Flour.

  • A 400g Peak Powdered (Tin) milk continues to sell for an average of N1,213 while 900g still sells for an average of N2,375.
  • 12.5kg of household cooking gas (Refilling) continues to sell for an average of N3,375 while 5kg cylinder is still filled for an average of N1,375.
  • 500g Milo Tin and 900g still sell for an average of N1,038 and N2,075 respectively across the four markets.
  • 5 Litres and 25 Litres gallon of locally made vegetable oil maintained their initial prices at N2,200 and 12,575 respectively.
  • The price of Kote and Titus fish continues to sell for N563 and 575 respectively.
  • Big bag of pepper currently sells for an average of N15,000 at Mile 12 market while the medium-sized bag maintains its initial price of N8,000.

 

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Special Markets

  • Market traders are feeling the brunt of restrictions imposed in the form of alternate days to open markets as they expressed their dissatisfaction due to low sales in recent weeks. Recall that, Lagos state government ordered food selling markets in the state to only open on Tuesdays, Thursdays and Saturdays of the week as a measure to curb the spread of COVID-19 pandemic.
  • Due to this alternating market days, sales have reportedly declined by almost half in major markets, as expressed by major traders interviewed by Nairametrics Research.
  • Oval shaped tomatoes popularly regarded as Yoruba tomatoes was sighted at Mile 12 market during the week. Recall that it had not been available in the past couple of weeks due to harvesting season. Meanwhile, a big basket is sold for an average of N8,500 while a small basket cost N6,500.
  • Sellers of tomatoes at the market told Nairametric Research that the price of tomatoes is highly volatile and changes from time to time. “basket of tomatoes could be sold for an average of N20,000 in the morning, and by afternoon drop to N9,000. So is the nature of tomatoes price,” Shehu said.

 

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Market Insights

  • A big bag of dry Bush mango (Ogbono) recorded a decrease in price from an initial N75,000 recorded in May to an average of N70,000 while a bag of melon (egusi) sells for an average of N68,000.
  • Although the price of Sweet potatoes reduced by 46.7% compared to N15,000 recorded in May, but it is yet to return to its average price of N5,000 being sold earlier in the year.
  • According to a trader interviewed at Oyingbo market who requested to remain anonymous, she said; “over the years, palm oil price usually goes up during rainy season so we are not surprised that the price of palm oil recorded an increase”.
  • Price of various locally made rice sighted at Daleko market are given below:

Mama’s Pride (N21,000), Umza (N21,000), Labana (N22,000), Alamzat (N22,000), Big bull (N23,000), Mama choice (N21,000), and Royal Naija (N20,000).

  • Some other variety of beans and their respective prices; Oloyin beans (Honey beans N14,500), Oloyin pelebe (N15,000), Niger brown beans (N23,000), Maiduguri brown beans (24,000).
ItemsBrandUnitMUSHIN (18/06/2020)DALEKO (18/06/2020)OYINGBO (18/06/2020)MILE 12 (18/06/2020)Average MUSHIN (28/05/2020)DALEKO (28/05/2020)OYINGBO (28/05/2020)MILE 12 (28/05/2020)Average
Bag of RiceBasmati5kgNANANANANANANANANANA
Bag of RiceMama Gold10kgNA4000NANA4000NA4000NANA4000
Bag of RiceRoyal Stallion50Kg28000NA27000275002750028000NA270002700027333.333333333
Bag of RiceRice Master10kgNA3500NA40003750NA3500NA40003750
Bag of RiceMama Gold50kg22000215002100020000211252000020000210002050020375
Bag of RiceCaprice50kg28000NA275002750027666.6666666672800027000275002700027375
Bag of RiceMama's Pride50kg21000210002100021000210001950019000195001950019375
Bag of RiceFalcon25kgNANANANANANANANANANA
Bag of BeansOloyin50kg13000125001300012500127501300012500130001250012750
Bag of BeansWhite50kg22000205002100021000211252200020500210002100021125
Bag of BeansBrown>50kg20500195002150021000206252050019500215002100020625
Tuber of YamAbuja1 Big Size Tuber1000900900100095013001200130012001250
Tuber of YamAbuja1 Medium Size Tuber650700750700700700700750700712.5
Carton of NoodlesIndomie305g (Belle full)2900290029002900290029002900290029002900
Carton of NoodlesIndomie200g (Hungry man)3200320032003200320032003200320032003200
Carton of NoodlesChikki100g2000220021002100210020002200210021002100
Carton of NoodlesMinimie70g1600165017001650165016001650170016501650
Carton of NoodlesGolden Penny70g1400140014001400140014001400140014001400
Bag of GarriIjebu80kg13000135001300014000133751250013000125001400013000
Bag of GarriWhite50kg11000115001150011000112501100011500115001100011250
Bag of GarriYellow50kg12000125001200012500122501200012500120001250012250
Basket of PotatoSweetBig Basket800080001500015000
Basket of PotatoSweetSmall Basket700600600633.3333333333310001000
Basket of PotatosweetSmallest Basket200200200200500500
Basket of PotatoIrishBiggest Basket20000200002000020000
Basket of PotatoIrishSmall Basket20002000200020002000
Basket of PotatoIrishSmallest Basket1700150015001566.666666666715001500
Packet of PastaGolden Penny500g4300440043004200430043004400430042004300
Packet of PastaDangote500g4100410042004100412540004100420041004100
Packet of PastaPower (1 pc)500g220220220220220220220220220220
Packet of PastaBonita (1 pc)500g230200230220220220200200210207.5
Gallon of Palm OilLocal5 Litres2200210021002100212521002000200020002025
Gallon of Palm OilLocal25 Litres110001050011000105001075010000950010000950010000
Gallon of Vegetable OilLocal5 Litres2200220022002200220022002200220022002200
Gallon of Vegetable OilLocal25 Litres12600124001290012400125751260012400129001240012575
Gallon of Vegetable OilKings5 Litres3000300030003000300030003000300030003000
Gallon of Vegetable OilWesson5 Litres3900390039003900390039003900390039003900
Gallon of Vegetable OilMamador3.8 Litres25002450250024002462.525002450250024002462.5
Gallon of Vegetable OilPower3 Litres1800180018001800180018001800180018001800
Bunch of PlaintainPlaintain1 Big Bunch500400450500462.5500400450500462.5
Bag of FlourDangote50kg11200112001100011000111001120011200110001100011100
Bag of FlourHoney well50Kg11200112001120011200112001120011200112001120011200
Bag of FlourMama Gold50kg11000113001100011000110751100011300110001100011075
MilkPeak Powdered (Tin)400g12501200120012001212.512501200120012001212.5
Milkpeak Powdered(Tin)900g2400240024002300237524002400240023002375
MilkPeak milk (Refill)500g10501000100010001012.510501000100010001012.5
MilkDano Powdered (Tin)500g1000100010001000100010001000100010001000
MilkDano Powdered(Tin)900g2000200020002000200020002000200020002000
MilkDano (Refill)500g850800800800812.5850800800800812.5
MilkThree Crown (Refill)380g720700750700717.5720700750700717.5
MilkLoya Powdered (Tin)400g10001000100010501012.510001000100010501012.5
MilkLoya (Refill)400g850800850800825850800850800825
MilkCoast (Refill)500g750750750750750750750750750750
Cocoa BeveragesMilo (Tin)500g10001100105010001037.510001100105010001037.5
Cocoa BeveragesMilo (Tin)900g2000210021002100207520002100210021002075
Cocoa BeveragesMilo Refill500g900900900900900900900900900900
Cocoa BeveragesBournvita Refill500g95010009509009509501000950900950
Cocoa BeveragesBournvita (Plastic)900g2000200020002000200020002000200020002000
Cocoa BeveragesOvaltine Refill500g800800850850825800800850850825
Cocoa BeveragesOvaltine(Plastic)500g1100110010001100107511001100100011001075
CoffeeNescafe Classic50g600600600600600600600600600600
TeaLipton Yellow label52g310290300300300310290300300300
TeaTop tea52g300300300300300300300300300300
SugarSt' Loius Sugar(Cube) 500g500550550550537.5500550550550537.5
SugarGolden Penny Sugar (cube)500g350350350400362.5350350350400362.5
BreadVal-U1 loafNANANANANANANANANANA
BreadButterfield1 loaf350350350350350350350350350350
EggN/ACrate950100010001000987.5950100010001000987.5
Bottled Water (Refill)CwayRefill600600650600612.5600600650600612.5
Juice5 Alive1 litre600550550600575600550550600575
JuiceChivita1 litre600550600550575600550600550575
GasRefilling12.5kg3500300034003600337535003000340036003375
GasRefilling5kg1400130014001400137514001300140014001375
TomatoesBig Basketround shaped16000160001250012500
Medium Basketround shaped9500950065006500
Small Basketround shaped6000600040004000
Big BasketOval Shaped85008500NANA
Small BasketOval Shaped65006500NANA
FishKote (Horse Mackerel)1 big Fish550600550550562.5550600550550562.5
FishTitus (Mackerel)1 big Fish550600550600575550600550600575
PepperBig bag15000150001500015000
Medium bag8000800080008000
MaizeYellow180001650017250130001500014000
White180001700017500130001450013750
MelonBig bag68000680006800068000
OnionsBig bagDry Onions16500165001700017000
OnionsBig bagNew OnionsNANANANA

About Nairametrics Food Price Survey

The Nairametrics Food Price Watch is a bi-weekly household market survey that covers the prices of major food items, with emphasis on five major markets in Lagos – Mushin Market, Daleko Market, Oyingbo Market, Idi-Oro Market and Mile 12 Market.

 

Patricia
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Exclusive: Best bank in Nigeria judging by the numbers

These banks are all too big to fail but one stands tallest as the best.

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Best bank in Nigeria judging by the numbers

The Nigerian Banking sector is one of the most competitive sectors in the economy and perhaps the most profitable. Despite having about 23 deposit money banks in the country, only a dozen are listed on the Nigerian Stock Exchange (NSE).

Banking sector performance is something we track regularly at Nairametrics using several well-known metrics. Most of the data can be found in the financial statements of the banks within our repository of reports. While we track all banks, the following banks are included in our universe of measuring financial performance. They are Access Bank, GT Bank, Fidelity Bank, FCMB, Sterling Bank, FBNH, Union Bank, Zenith Bank, UBA, Stanbic IBTC and Wema Bank.

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In this report, we take a cursory look at the performance of listed banks in Nigeria based on the six (6) metrics, these include Total Assets, Net Assets, Total Deposits, Profit After Tax, Return on Average Equity and Return on Total Assets.

READ ALSO: NSE loses N2 trillion in value in Q1 2020, as oil plunges 65% QoQ


Best Banks by Total Assets.

In this case, banking assets include equity plus bank deposits. According to the data, 11 of the listed banks reported a combined total asset of N42.4 trillion as at the first quarter of 2020.

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This represents a 10.3% rise from total assets of N38.4 trillion as at December. Growth in Total Assets is indicative of how strong our financial institutions are particularly banks.

The size of their total assets also indicates how much support they can give to the Nigerian Economy. At N42 trillion bank total assets represent roughly 29% of Nigeria’s GDP of N145 trillion. That is roughly one-third of our GDP. When you compare to South Africa at 77% and the US at about 62.4% you realize there is room for growth.

So who are the leaders?

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First Position – Access Bank N7.28 trillion

Second Position– Zenith Bank – N7.12 trillion

Third Position – FBNH N7.02 trillion

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Fourth Position – UBA N6.3 trillion

Upshots – Access Bank has maintained the number one position since 2019 after overtaking Zenith Bank following its merger with Diamond bank However, Zenith bank’s asset jumped 12.3% in the first quarter of 2020 to N7.1 trillion compared to Access Bank’s 1.8% rise.

We won’t be surprised if Zenith Bank takes this position again come August when we update this ranking. Also interesting to note that the 4 banks make up more than half the entire total assets. Suffice to say these are indeed “too big to fail” banks. 

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READ MORE: Analysis: Seplat’s transfer of OMLs has us wary 


Net Assets

Banks’ net assets represent the total equity or shareholders’ funds of all the banks on our list. It includes the bank’s share capital, reserves, and its retained earnings in a period. The net asset is a very strong metric for measuring how strong banks are and it is also used by the CBN in assessing banking sector ability to withstand credit losses.

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We observed that at the end of Q1 2020, bank net assets rose from N4.64 trillion at the end of 2019 to N4.7 trillion. This presents a 1.4% rise over the three months period. However, this also represents a 20.5% jump from N3.9 trillion posted in 2018. Banks’ net assets are also circa 10% of their total assets.

The top 4 by Net Assets

First Position – Zenith Bank, N925.9 billion

Second Position – FBNH, N680.3 billion

Third Position – GT Bank, N661 billion

Fourth Position – Access Bank, N635.5 billion

Upshots: We noticed a remarkable rise from FBNH and Stanbic IBTC two bank holding companies. After falling 21.8% to N530.6 billion in 2018, FBNH clawed back 21% to N642.6 billion in 2019 and posted N680.3 billion as at March 2020. Also, Stanbic IBTC increased its net assets by 26.1% in 2019 to 302.2 billion respectively.

The bank now has a net asset of N320.7 billion. Zenith Bank at N925.9 billion is down from the N941.8 billion reported at the end of 2019. This may be due to dividend payments.

It should be noted that most banks recorded a drop in their total net assets in the first quarter, it may largely be due to dividend payments. However, we expect Zenith Bank to crack the N1 trillion mark in net assets by the end of the year.


Total Deposits

Customer deposits are perhaps one of the most competitive banks’ performance metrics to track. The more deposits a bank has the more money it can make. In a country where a lot of cash remains outside the banking system, how well a bank can mobilize deposits from its customers shows how well it can compete in a very aggressive market.

Analysis of the data collected showed that total banks’ deposits rose from N19.1 trillion in 2017 to N29.1 trillion in the first quarter of 2020. Whilst this is impressive growth, it did not adjust for the defunct Diamond Bank.

Thus, a better comparison would be between the N26.8 trillion in deposits recorded in December 2019 and N29.1 trillion in the first quarter of this year. This implies an 8.8% rise in just three months. Listed banks are on track to cross N30 trillion in customer deposits.

Top banks based on deposits

First Position – Access Bank, N5.6 trillion

Second Position – FBNH. N5.4 trillion

Third Position – UBA, N4.6 trillion

Fourth Position – Zenith Bank, N4.4 trillion

Upshots: UBA’s total deposits rose a whopping 14% to N4.6 trillion in the first quarter of 2020, adding about N467 billion in new deposits in just 3 months. An even more notable jump was from Stanbic IBTC with a 31.6% rise to N1.1 trillion in three months.  The bank broke into the N1 trillion club from N886 billion it had at the end of 2019.

The bank has now leapfrogged Sterling Bank and is on the heels of Fidelity Bank and FCMB. Fidelity Bank also impressed with a 10.4% rise in its numbers. FBNH, one of the oldest banks also rose 12.5% and at its rate could outpace the number one on the list, Access Bank.


Profits After Tax

Corporate Profits are often viewed positively or negatively depending on how you view the impact of capitalism. For banks, it can attract scrutiny if it comes at the expense of small businesses or the wider economy. Nigerian banks reported a total profit after tax of N815.5 billion at the end of 2019. This, compared to N754.7 billion reported in 2018 and N630.3 billion in 2017.

Though banks have often been criticized for reporting fat profits at the expense of the wider economy, we are better off having profitable banks than unprofitable ones. The more profitable banks are (consistently) over time, the more robust they are to support economic growth.

READ ALSO: UPDATED: Nigeria received $5.85 billion capital inflows in Q1 2020 –NBS

Banks that declared the most profits.

First Position – Zenith Bank, N208.8 billion.

Second Position – GT Bank, N196.8 billion

Third Position – Access Bank, N97.5 billion.

Fourth Position – UBA – N89 billion

Upshots – Zenith Bank and GT Bank appear to be in a world of their own as they make more than double their closest rival. Both banks are neck and neck again in the first quarter with N50 billion in profits for GTB and N50.5 billion for Zenith Bank.

In terms of the most improved bank based on profitability growth year on year, the winner goes to Wema Bank with a 56.3% rise in profits to N5.2 billion. Union Bank also saw its profits rise by 34.7%. Others with significant profit increases in 2019 were Sterling Bank, FCMB, and UBA with 17.2%, 13.2%, and 13.3% respectively.


Return on Equity

This is another important metric used in assessing how well a bank has performed in terms of returns to shareholders. We consider this the most important in terms of performance and efficiency. You can post the largest profits but just like any regular investment you want to know what that translates to in terms of return on equity capital.

Based on our pool of banks’ data, a return on average asset of 18.1% was achieved in 2019 compared to 17.5% a year earlier. This is higher than the inflation rate for 2019, higher than MPR, and just lower than banks’ lending rate.  This figure was 11.39% in the US

How have they performed?

First Position – GT Bank, 31.2%

Second Position – Stanbic IBTC, 27.7%

Third Position – Zenith Bank, 23.8%

Fourth Position – Access Bank, 17.7%.

Upshots – Whilst Stanbic yielded the first place to GTB after catapulting to the top in 2018 with a return on average assets of 35%, it was interestingly the only notable drop from all the banks except Access Bank. Union Bank’s numbers increased from 6.3% to 10.2% one of the most improved performances in 2019. We note FBNH broke the single-digit ceiling to 10.6% as the bank continues with its growth comeback. 


Return on Average Assets

This measures how well a bank is sweating its assets to generate profits. It is one thing for a bank to have all the assets in its balance sheet but is it providing returns to all providers of capital? We like this metric at Nairametrics because it tells us how well a bank is able to run efficiently using all the resources at its disposal to generate profits for its shareholders.

In general, banks reported a return on total assets of 2.3% in 2019 compared to 2.4% in 2018. Return on Average Assets for US banks was about 1.3% in 2019 and about 1.1% for South African Banks.

Best Banks based on ROAA

First Position – GT Bank, 5.6%

Second Position – Stanbic IBTC 4.2%

Third Position – Zenith bank, 3.4%

Fourth Position – UBA, 1.7%

Upshots – Just like the impressed with ROAE, GT Bank is again the best bank based on Return on Average Assets at a whopping 5.6%. That just shows how very well run the bank is and that it maintained this return in a struggling economy is even more remarkable. We noticed a drop in return on assets across most of the banks highlighting how difficult the economy has been for banks. 


Which is the best bank overall for the first quarter of 2020? Well, we leave that to you our readers to judge.

Patricia
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