Fakoyejo OlalekanAt the end of the second quarter of 2022, United Bank for Africa (UBA) was the best performing financial institution amongst the tier-1 banks in Nigeria, with Zenith Bank ranking bottom of the list.
In an industry analysis of the tier-1 banks, comprising of First Bank of Nigeria (FBN) Holdings, Zenith Bank, Guaranty Trust Holding Company (GTCO), UBA and Access Bank, it was gathered that their combined net profit grew 15% in Q2 this year.
Join our WhatsApp ChannelThe five companies generated N227.57 billion profit after tax within three months between April to June 2022, surpassing the N197.85 billion the financial institutions grossed as net profit same period in 2021.
During the period in review, UBA’s net profit grew 28.59%, FBN Holdings’ profit after tax rose 7.52%, Access Bank took the third spot with 2.21% growth, Guaranty Trust recorded 1.41% increase, and Zenith Bank completed the list with 0.29%.
Breakdown of tier-1 banks’ performance
United Bank for Africa
UBA financials showed that the company’s net profit grew to N28.83 billion in the second quarter of 2022, against the N22.42 billion the firm posted during the corresponding period of 2021 – indicating a growth of 28.59%.
- The growth also spilled into the Net Interest Income, which rose by 25.65%, to N92.59 billion between April and June this year, surpassing the N73.68 billion reported in Q2 last year.
FBN Holdings
First Bank followed next after its net profit grew by 7.52% in the three months of second quarter 2022, closing the period with N24.13 billion, in contrast to the N22.44 billion grossed in Q2 2021.
- The management was also able to raise the company’s Net Interest Income to N80.11 billion in the second quarter of 2022, well above the N51.03 billion FBN Holdings had posted in the corresponding period of 2021.
Access Bank
At the end of the period in review, Access Bank reported its profit after tax increased to N88.73 billion. This is a 2.21% difference when compared to the N86.81 billion net profit the bank generated in the second quarter 2021.
- Access Bank, however, was unable to prevent its Net Interest Income from falling, with the financial institution’s earnings report showing N197.50 billion for Q2 2022, which is -1.25% below the N200.01 billion posted in Q2 2022.
Guaranty Trust
GTCO occupied the fourth place after managing to increase its profit after tax by 1.41% to N34.34 billion in Q2 this year, rising above the N33.86 billion that the lender disclosed in its second quarter 2022 financials.
- The company’s Net Interest Income grew higher than the net profit, rising 16.51% year-on-year, to close Q2 with N63.64 billion, which is above the N54.62 billion that was recorded in the same period last year.
Zenith Bank
Zenith Bank was the least performing financial institution when compared to its market rivals, as the creditor’s net profit grew slowly by 0.29%, from N76.77 billion in Q2 2021, to N84.20 billion for the period between April to June 2022.
- Meanwhile, Zenith Bank’s Net Interest Income closed the period in review with N84.20 billion, against the N76.77 billion that it recorded during the second quarter of last year. This reflects an increase of 9.68%.
Note: The Five Best Performing Tier-1 Nigerian Banks of Q1 2022 was determined by customers’ deposits, however, that was changed to net profit to rank them in Q2 2022.
Follow Us