Nigeria's banking sector continues to be a pivotal force in the country's economy, with several banks demonstrating exceptional profitability and growth. As we delve into 2024, it becomes crucial to identify the financial institutions that are setting the benchmark for success.
In this article, we explore the most profitable banks in Nigeria, highlighting their financial performance, strategic initiatives, and market impact.
Whether you are an investor, a financial analyst, or simply interested in the banking landscape, understanding which banks lead in profitability can offer valuable insights. Join us as we uncover the top-performing banks that are shaping Nigeria's financial future.
The Most Profitable Banks in Nigeria 2024
In the first half of 2024, Nigeria's banking industry has performed remarkably well amidst difficult economic and regulatory conditions.
The ten listed banks' combined profit after tax (PAT) jumped from N498 billion in H1 2023 to N1.4 trillion in H1 2024, a staggering 193% year-over-year gain.
A significant portion of the profit increase can be attributed to the banks' claimed gains on their foreign exchange holdings, which they have acquired through various swaps and hedging instruments.
We have got some lists of the most profitable banks in Nigeria. The list is compared to the numbers from the same period in 2023 and arranged according to the profits reported in H1 2024, in descending order. Every figure is shown in Nigerian Naira, indicated by the letter "N.”
1. Zenith Bank
Zenith Bank closely trailed behind with a profit growth of 161.8%, aided by its forex operations. But for the first time since 2020, a non-GTB bank is overtaking Zenith for this position. The significant loan impairment charge Zenith incurred throughout the year may also have contributed to its loss of second place.
- Profit 2024 H1: N291,731 million
- Profit 2023 H1: N111,413 million
2. Guaranty Trusts Holdings (GTCO)
Pre-tax earnings at GTB increased by an astounding 261.6% thanks in part to the company's robust currency operations. It was still ranked third despite the phenomenal increase in earnings.
- Profit 2024 H1: N280,482 million
- Profit 2023 H1: N77,557 million.
3. FBN Holdings
Largely as a result of advances in its currency sector, FBNH showed a notable 230.7% increase in profits. For the time under examination, its profit increase of 230.7% was the third largest. During this period last year, it was also fifth.
- Profit 2024 H1: N187,237 million
- Profit 2023 H1: N56,602 million.
4. Access Holdings
With a strong 41.8% profit gain, Access Bank took fourth place. The biggest bank in Nigeria in terms of total assets fell two places from its second-place ranking at this time last year in terms of earnings after taxes.
- Profit 2024 H1: N135,439 million.
- Profit 2023 H1: N95,486 million.
5. United Bank of Africa (UBA)
For the first time on top of the ranking, UBA saw an astounding 437.7% profit rise in the first half of 2024, making it the most profitable bank in Nigeria. In terms of both absolute profits and profitability growth, UBA has taken the lead.
Regarding net trading income (net of interest and commissions) just, UBA seems to have made the greatest money (as measured by growth). The second half of the year saw it bring in over N427 billion. By our records, no bank was in the vicinity. Regarding absolute performance, only Zenith Bank fared better.
- Profit 2024 H1: N70,334 million
- Profit 2023 H1: N378,235 million
6. Stanbic Bank
Stanbic IBTC posted a profit growth of about 121.5%, highlighting the impact of the gain from its forex business. It also retained the 6th position.
- Profit 2024 H1: N67,919 million.
- Profit 2023 H1: N30,669 million.
7. Fidelity Bank
A surge in revenue from its currency division contributed to Fidelity Bank's 165.9% profit increase. It kept its seventh place from the previous year, nevertheless.
- Profit 2024 H1: N61,995 million.
- Profit 2023 H1: N23,307 million.
8. First City Monument Bank (FCMB)
With a notable 159.4% increase in earnings, FCMB is now classified as a high-growth bank. Still, they are firmly entrenched in eighth place, just as they were the previous year.
- Profit 2024 H1: N35,410 million
- Profit 2023 H1: N13,663 million
9. Union Bank Of Nigeria
UBN's earnings growth is a meek 7.9%, suggesting steady performance. They have had the slowest profit increase in the industry. The bank is undergoing a transitional phase as its new owners take charge.
- Profit 2024 H1: N12,633 million.
- Profit 2023 H1: N11,711 million.
10. Sterling Bank
With a 33.3% profit rise from the previous year, Sterling Bank tops our list. For the same period in 2022, the bank maintained its final position.
- Profit 2024 H1: N10,680 million
- Profit 2023 H1: N8,013 million
The Takeaway
In conclusion, the banking sector in Nigeria remains robust, with several banks achieving remarkable profitability in 2024. By focusing on innovative solutions, strategic expansions, and sound financial management, these institutions have set themselves apart as the most profitable banks in Nigeria.
Staying informed about these leading banks can provide valuable perspectives for investors and stakeholders looking to navigate the financial landscape. Use this comprehensive analysis to guide your decisions and stay ahead in the ever-evolving banking sector.
Keep an eye on these top-performing banks as they continue to drive growth and profitability in Nigeria's economy.
I Am odudu abasi a top-notch and experienced freelance writer, virtual assistant, graphics designer and a computer techie who is adept in content writing, copywriting, article writing, academic writing, journal writing, blog posts, seminar presentations, SEO contents, proofreading, plagiarism/AI checking, editing webpage contents/write-ups and WordPress management.
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