Money

Nigeria's Top 5 Banks Generate N740.9 Billion as Interest Income Between July-September 2022

Monday, October 31, 2022 at 5:24 PM by Victor Enengedi 3 min read

The year 2021 was an outstanding one for Nigerian banks despite the economic challenges in the country
The banks were not only able to generate N740.9 billion as interest income between July-September 2022
Experts believe that since the CBN increased the benchmark interest, the fourth quarter of the year could see the banks printing higher numbers.

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The top 5 banks in Nigeria have generated a sum of N740billion combined as interest income in the third quarter of 2022. According to a Nairametrics report, this is about a 35.9% increase from N545.21 billion recorded in the third quarter of 2021.

The tier-1 banks which are the largest in Nigeria by market capitalisation include FirstBank, Union Bank, GTBank, Access Bank and Zenith Bank.

Interest incomes are revenue earned by banks from lending money to other entities. They are usually the main source of income for financial institutions in the country. On average, interest earnings account for more than half of the total revenue generated by Nigerian banks.

Breakdown of interest income by bank

Access Bank - N199.67 billion, 32.1% increase from N151.18 billion recorded in the same period of 2021

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United Bank for Africa - N162.87 billion, a 34.5% increase from the N121.08 billion posted in the third quarter of 2021.

Zenith Bank - N149.03 billion, a 42.1% higher than the N104.91 billion posted in 2021.

First Bank - N144.01 billion, a 45.3% increase from N99.1 billion recorded in the same period of 2021.

Guaranty Trust Bank - N85.29 billion, a 23.7% increase from N68.95 billion recorded in the same quarter of 2021.

Experts believe that since the CBN increased the benchmark interest rate for the third time in a row in September 2022 to 15.5%, which is the highest rate in 20 years, the fourth quarter of the year could see the banks printing higher numbers.

Top 5 Nigerian Banks with Largest Customers Deposit

Legit.ng earlier reported that the total customer deposits held in five of Nigeria's largest banks topped N19.57 trillion in 2021, according to data obtained from financial statements of some banks. This is just about 17.39% increase compared to N3.55 trillion higher than what was reported at the end of 2020.

Zenith Bank recorded the highest growth in customer deposits as its total customer deposits during the period increased by 21% to N6.47 trillion from the N5.34trillion reported for 2020.

UBA closely followed with total customer deposits of N6.4 trillion reported in its audited results for the 2021 financial year compared with the N5.7 trillion it recorded in 2021.

GTCO's audited results for the 2021 financial year showed that it grew its total customer deposits to N4.01 trillion in 2021 from N3.51 trillion in 2020.