The New Ranking of Nigerian Banks Will Surprise You!
If you’ve been concerned that Nigerian banks rely mostly on government securities for most of their impressive earnings, you’re not alone. The 2017 9 M results released over the last two to three weeks by the banks have made this crystal clear. Using that data from the just-ended earnings season, a new ranking has been published showing where Nigerian banks fall, especially which one is the biggest as demonstrated in the table below.
All figures are in Naira (₦), with US$1 = ₦360 (Parallel/black market rate) and $1 = ₦304 (i.e., ₦1 = US$0.0028)
The data also reveals which bank is the largest in terms of balance sheet size, profits, deposits, loans etc.
Largest Bank by Balance Sheet Size
The largest bank by balance sheet size in Nigeria is Ecobank. Some might claim their operations are Pan-African, but they are quoted in Nigeria and earn most of their money in Nigeria. They top the chart with ₦6.2 trillion as at the end of the September 2017. FBNH and Zenith are next with ₦5.1 trillion and ₦4.8 trillion. Combined they share 53 percent of balance sheet size of banks.
Net Assets refers to the equity or shareholder funds of the banks. Zenith Bank tops the chart here with a whopping ₦768 billion. They also own about 18 percent of the total shareholder banks of Nigerian big banks. FBNH is next with 15.3 percent.
Ecobank (ETI), the foremost pan-African bank, tops the chart in deposit base with about ₦4.7 trillion or 23 percent of total deposits. FBNH is next with ₦3.5 trillion, followed by Zenith Bank with ₦3 trillion. No other bank has above ₦3 trillion.
Loans and advances
ETI also leads the pack with over ₦3.3 trillion in loans and advances to borrowers. FBNH is next with ₦2.6 trillion and Zenith Bank with ₦2.1 trillion. Total loans is about ₦15 trillion and no other bank apart from the three has up to ₦2 trillion in loans
Profits after tax
In terms of profitability, Zenith Bank leads with ₦129 billion followed by GT Bank with ₦126 billion. The two banks have a combined 48.6 percent of banking profits so far and dominate market share.
Return on Equity
On this front, Stanbic IBTC leads the way with about 24.3 percent followed by GT Bank at 23 percent. Also interesting to note that both banks have been the best gainers this year and are the most expensive stocks on the banking index. Zenith Bank with 17 percent joins the trio as the only banks that have earned returns above the treasury bills yearly yield of about 18 percent.
Return on Assets
In terms of return on assets, how banks sweat their assets, none other than GT Bank tops the chart. The bank is not one to carry on a lot of assets and basically sweats whatever it is it has. At 3.9 percent on ROA, no banks comes close to their efficiency levels. Stanbic also does well at 3 percent. Zenith Bank is at 2.6 percent. Industry average is 1.7 percent and Diamond Bank is the least at 0.29 percent.
Credits: Nairametrics, November 6, 2017