FCMB, First Bank Emerge Best Performing Commercial Banks in Nigeria in 2022
- Nigerian banks saw massive growth in the third quarter of 2022 as they amassed trillions in profit
- According to reports which examined the records of the 13 banks in the country, about three banks emerged tops
- FCMB, First Bank and Fidelity Bank became the best-performing banks in the country across all metrics
PAY ATTENTION: How media literate are you? Click to take a quiz – bust fake news with Legit.ng!
First City Monument Bank (FCMB), First Bank and Fidelity banks are leading the pack of best-performing commercial banks in Nigeria in the Q3 of 2022.
An analysis of the banks' equity and financials shows that the 13 banks made the sum of N298.84 billion as profit before tax between July and September of 2022, showing an increase of 29.9 per cent compared to N228.54 billion recorded the year before.
Source: UGC
Despite economic troubles, Nigerian banks remain strong
The banks remained strong despite solid headwinds, in which Nigeria's GDP is slowing to 2.25 per cent from 3.54 per cent in the previous quarter and 4.03 per cent in the same quarter of 2021.
PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app!
The banks witnessed a 5 per cent increase in customer deposits during the period under review to stand at N43.68 trillion as of September 2022 from N41.61 per cent as of June 2022.
Four of the 13 banks recorded positive growth in their share price in the third quarter of this year in the local equities market.
The 13 banks recorded an average cost-to-income ratio of 64.96 per cent in the period under review, compared to 69.11 per cent in the same period last year.
The National Bureau of Statistics said that the banks recorded slowed growth, saying that the banking sector slowed from 20.06 per and 25.5 per cent recorded in the second quarter of 2022 and 2021, respectively, to 12.03 per cent during the period under review.
NBS reports that this is the slowest quarterly growth since the first quarter of 2021, when the economy was recovering from the COVID-19 pandemic.
Best banks by total asset growth
The 13 banks under consideration grew their assets by 4 per cent from N63.59 trillion recorded as of June 2022 to N66.13 trillion by the end of September 2022, representing an N2.54 trillion increase in three months.
The top banks in this category are Access Bank, Zenith Bank and First Bank, which recorded the highest asset value during the period under review, but the banks changed position in terms of growth rate.
First position – Zenith Bank
Second position – FCMB
Third position – Union Bank
Fourth position – Jaiz Bank
Fifth position – UBA
Best banks by customer deposits growth
Customer deposits to the thirteen banks increased by 5% in the third quarter of 2022 to stand at N43.68 trillion from N41.61 trillion recorded as of June 2022.
Access, Zenith, and UBA recorded the highest customer deposits as of September 2022. Meanwhile, below are the leading banks by growth in customer deposits in Q3 2022.
First position – Zenith Bank
Second position – FCMB
Third position – Jaiz Bank
Fourth position – Union Bank
Fifth position – First Bank
Leading Banks by loan book growth
The loan books of the twelve banks (Jaiz Bank excluded) that reported their customer loans grew by 5.5% to stand at N23.76 trillion as of September 2022 from N22.53 trillion recorded as June 2022.
A bank loan is an important metric used to assess banks' performance. Notably, loans allow for growth in the overall money supply in an economy and open up competition by lending to new businesses.
The interest and fees from the loans also form a significant part of banks' earnings. As of the period under review, Access Bank boasts the most potent loan book at N4.62 trillion, followed by Zenith Bank and First Bank with N3.88 trillion and N3.6 trillion, respectively.
Best banks by loan book growth
First position – Zenith Bank
Second position – Union Bank
Third position – UBA
Fourth position – Stanbic IBTC Bank
Fifth position – First Bank
Leading banks by profit after tax (PAT) growth
The 13 banks posted a profit after tax of N296.84 billion in Q3 2022, an increase of 29.9 per cent from N228.54 billion recorded in 2021.
In terms of profit after tax, Zenith, GTCo, and Access Bank led the list of banks with the highest gain; meanwhile, below is the ranking in terms of profit growth.
First position – First Bank
Second position – Fidelity Bank
Third position – Sterling Bank
Fourth position – Stanbic IBTC
Fifth position – Access Bank
Best banks by the cost-to-income ratio
First position – First Bank
Second position – FCMB
Third position – Stanbic IBTC
Fourth position – Zenith Bank
Fifth position – Access Bank
Best banks by return on average equity
First position – First Bank
Second position – Fidelity Bank
Third position – FCMB
Fourth position – Sterling Bank
Fifth position – Zenith Bank
Top banks by share appreciation
First position – Wema Bank
Second position – Fidelity Bank
Third position – Sterling Bank
Fourth position – Union Bank
The overall ranking by performance showed that FCMB leads the pack, followed by First Bank and Fidelity Bank.
Top 5 biggest banks in Nigeria by market capitalisation
Legit.ng reported that Zenith Bank, GT Bank and 3 others made the list of the top 5 banks in Nigeria according to market capitalisation. This is according to data released by the Nigerian Exchange at the close of the market on Monday, November 28, 2022.
The market capitalisation is, in otherwords, the cumulative value of the banks. It is calculated by multiplying the total units of shares held by the price of the shares.
Typically, the positions would be comprised of the tier-1 banks in Nigeria which are sometimes known as FUGAZ (First Bank, UBA, GT Bank, Access Bank and Zenith Bank), but for the period under our scope, UBA lost its position on the list to Stanbic IBTC.
Source: Legit.ng
