Zenith, UBA, GTCO, 4 Other Nigerian Banks Surpass N4trn Profit Mark Amidst Economic Challenges
Seven major Nigerian banks made a total profit of N4.2 trillion in the 2024 financial year. Despite tough economic conditions, banks like Zenith Bank PLC, United Bank for Africa (UBA), Guaranty Trust Holding Company Plc (GTCO), First Bank, Fidelity Bank, Stanbic IBTC, and Wema Bank managed to earn this large amount.
The banking sector faced several challenges last year, including high inflation, the falling value of the naira, and reduced spending power among Nigerians.
During the year, the sector also experienced some bank closures, mergers, and changes in regulations. Still, several top banks showed strong results in their 2024 financial reports, with notable increases in profits after tax.
Source: UGC
According to their reports submitted to the Nigerian Exchange Limited (NGX), some banks recorded significant growth in gross earnings and profits.
Zenith Bank records N1.03 trillion after tax
Zenith Bank Plc’s financial results for 2024 showed a record profit of N1.03 trillion after tax, which is a 52.5% increase from the N676.9 billion reported the previous year.
The bank also achieved a pre-tax profit of N1.32 trillion, another record, marking a 66.6% year-on-year increase.
Looking at the details, the bank reported gross earnings of N3.9 trillion, with interest income and trading income being the main contributors to this amount.
As part of its earnings announcement, Zenith Bank proposed a final dividend of N4.00 per share. This brings the total dividend for 2024 to N5 per share, up from N4 per share in 2023.
GTCO makes staggering N1.01 trillion
GTCO reported an after-tax profit of N1.01 trillion for the year, reflecting an 89.4% increase from the N539 billion in 2023, largely driven by the growth in interest income.
GTCO's gross earnings for 2024 increased by 81.3%, reaching N2.14 trillion, with corporate banking contributing the largest share. The bank also saw a major rise in interest income, which grew from N436 billion in 2023 to N1.32 trillion in 2024.
However, interest expenses surged by 148%, climbing from N114 billion to N283 billion, mainly due to higher costs from deposits.
Despite the increase in expenses, the group's net interest income rose by 140.8%, reaching N1.05 trillion, up from N436 billion the previous year.
UBA's profit after tax increased to N766.6 billion
UBA's audited financial results for 2024 show significant growth across key metrics. The bank's profit after tax increased by 26.14%, reaching N766.6 billion, up from N607.7 billion in 2023.
Gross earnings also saw a substantial rise of 53.6%, growing from N2.08 trillion in 2023 to N3.19 trillion in 2024. UBA’s total assets grew by 46.8%, reaching N30.4 trillion in December 2024, up from N20.65 trillion in 2023, marking a major milestone.
The bank also recorded a 6.1% increase in profit before tax, which rose to N803.72 billion from N757.68 billion the previous year.
As a result, UBA’s shareholders’ funds grew by an impressive 68.39%, rising from N2.03 trillion in 2023 to N3.42 trillion by the end of 2024.
FBN Holdings' profit grows to N862.38 billion
FBN Holdings increased its gross earnings by 113% to N3.33 trillion in the 2024 financial year.
According to the group’s unaudited financial statement published on the Nigerian Exchange Limited platform, profit grew by 142%, reaching N862.38 billion, up from N356.15 billion in 2023.
During the period, net interest income rose by 155% year-on-year to N1.39 trillion, while non-interest income climbed to N846.9 billion, compared to N255.8 billion in 2023.
Loans to customers grew by N2.79 trillion, reaching N9.4 trillion, and customer deposits increased by 62%, totaling N17.29 trillion. The group’s total assets also grew, reaching N26.54 trillion, up from N16.94 trillion.
N278.106 billion recorded by Fidelity Bank
Fidelity Bank reported a profit of N278.106 billion for the 2024 financial year, which ended on December 31. The bank's pre-tax profit was N385.215 billion, showing a remarkable 210.01% growth compared to the previous year.
Despite a windfall tax of N13.333 billion, its post-tax profit increased by 179.63%. The bank’s gross earnings grew by 87.72%, reaching N1.043 trillion, with core operational income making up about 97% of total revenue, according to the audited financial statement.
Source: UGC
StanbicIBTC grew N225.311 billion in profit
Stanbic IBTC Holding Plc reported a pre-tax profit of N303.796 billion for the 2024 financial year, which ended on December 31.
This represents a 60.23% increase compared to the previous year. The bank’s post-tax profit grew by 60.23%, reaching N225.311 billion.
The strong performance is mainly due to significant revenue growth, with gross earnings rising by 78.26% to N823.309 billion, which greatly boosted the bank’s overall profit.
Wema Bank's profit stood at 102.51 billion
Wema Bank reported a profit after tax of N102.51 billion for the 2024 financial year, showing a 135% increase from N43.59 billion in 2023. The bank's total assets grew by 60%, reaching N3.59 trillion in 2024, up from N2.24 trillion in 2023.
Its deposit base increased by 36%, rising to N2.52 trillion from N1.86 trillion in 2023. Loans and advances grew by 50%, reaching N1.2 trillion in 2024, up from N801.1 billion in 2023.
The bank's non-performing loans (NPL) stood at 3.86% at the end of 2024. Additionally, Wema Bank’s gross earnings grew by 92%, reaching N432.34 billion, up from N225.75 billion in 2023.
Sterling Bank ends online transfer charges
Meanwhile, Legit.ng earlier reported that Sterling Bank has announced that it will no longer charge transfer fees for local online transactions.
The bank said the initiative aims to support individuals and small businesses, reflecting its commitment to fairness and customer-focused banking.
In its announcement tweet, Sterling Bank tagged First Bank, Fidelity Bank, UBA, Access Bank, GTBank and StanbicIBTC, calling on them to adopt the same policy.
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Source: Legit.ng
