6 Most Profitable Banks in Nigeria in 2024 Posts N979.19 Billion Profit in 6 Months

• About six commercial banks have reported profit before tax of N979.13 billion in the first half of 2024
• Banks’ report shows that the amount is about 133% per cent higher than the N421.04 billion reported in the same period last year
• Analysis of the banks’ earnings under the period shows that Ecobank lead the group, followed by FBN Holdings Plc

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Despite the challenging operating environment, six banks have released their results for the half-year ending June 30, 2024, exceeding their 2023 results.

The six banks posted a pre-tax profit of about N979.19 billion, a 133 per cent increase over the N421.04 billion reported in the same period in 2023.

Top-earning banks in 2024

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The banks include Ecobank Plc, FBN Holdings, Wema Bank Plc, Jaiz Bank Plc, FCMB Group Plc and Sterling Financial Holdings Company Plc.

The other top-tier banks, such as Access Holdings Plc, Zenith Bank Plc, UBA, Guarantee Trust Bank Company Plc, Stanbic IBTC Holdings, and Fidelity Bank, are yet to announce their results for H1 2024.

ThisDay reports that the six banks reported N854.21 billion profit before tax in 2023, representing a 93.08% increase from the N442.42 billion reported in the 2024 fiscal year.

The banks’ profit growth during the period under review was driven by increases in interest income and non-interest income following the Central Bank of Nigeria (CBN) hike in interest rates.

According to experts, the operating environment was harsh during the review period, caused by double-digit inflation and a hike in monetary policy that drained liquidity in the banking system.

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Analysts say the banks’ financial records were due to the naira devaluation, stating that most banks have international links, with many of their assets in dollars.

Breakdown of the banks’ earnings

Analysis of the banks’ financial performance shows that Ecobank reported about N444.35 billion in pre-tax profits in the first six months, representing a 195.06% rise from N150.3 billion in the first half of 2023, while FBH Holdings earned N411.99 pre-tax profit, showing an increase of 100.9% from the N205.05 billion reported in the prior year.

The FCM Group declared a pre-tax profit of N64.21 billion in the review period, representing a 68% rise from the N38.23 billion recorded in the same period in 2023.

Wema Bank announced a pre-tax profit of N30.57 billion in the first half of 2024, a 153.47% growth from the N12.06 billion reported in HI 2023.

Sterling Financial Holdings Company earned N17.35 billion in pre-tax profit in the period under review, representing a 51% increase from the N11.46 billion reported in the same period in 2024, while Jaiz Bank reported N11.56 billion in pre-tax profit, representing 194.27% increase from the N3.93% recorded in the same period in 2023.

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List of five largest commercial banks in Nigeria by assets in 2024

Legit.ng earlier reported that the combined total asset value of Nigeria's tier-one largest banks increased to N116.80 trillion as of the end of the first quarter of 2024.

This figure represents a 23.81% or N22.46 trillion increase compared to N94.33 trillion as of December 2023.

A bank asset refers to any resource that a bank owns or controls that has economic value and is expected to provide future financial benefit.

Source: Legit.ng