Market News

Nigerian banks have been ranked among Africa’s top 100 banks in 2024, according to a report of the African Business Magazine.

FBN Holdings, ranked at 15, is the first Nigerian bank, with capital of $1.9bn, closely followed by Access Bank (16th) and Zenith Bank (17th).

Other Nigerian banks ranked by the magazine are United Bank of Africa (UBA) occupying 20th position of the table; Guaranty Trust Bank (GTB) 27; Ecobank 42; Union Bank 45 and FCMB taking 48th slot.

South Africa’s banking giant, Standard Bank Group maintained its spot as the continent’s standalone top bank every year, while the National Bank of Egypt has been second for the last four years.

“The gap between them has been closing a little, but Standard Bank, with Tier 1 capital of $12.5bn, is still more than two-thirds bigger than its rival, whose Tier 1 capital is $7.5bn,” the report indicated.

Morocco, Algeria and Tunisia banking giants equally made Africa’s top 100 banks.

Daily Trust observed that the top Nigerian banks dropped in the ranking compared to spots they occupied last year.

For instance, First Bank ranked at 15, (down one place), while Zenith Bank occupied 17th, down from last year’s ranking as top bank at 12th.

The magazine blamed the development on the decline in Nigeria’s naira currency compared to the US dollar (USD).

“Dramatic declines in Nigeria’s naira currency compared to the US dollar (USD) affect the rankings in this year’s table, since banks report their figures in domestic currencies and the research team compiling the rankings convert into USD either at the date of the results or another date,” the report said.

However, FBN Holdings, which is Nigeria’s oldest financial institution, in its 2024 second-quarter results, showing a pre-tax profit of N177.79 billion, representing an 18.9% year-on-year growth.

The growth in pre-tax profits boosted half-year profitability to a record N411.9 billion for the group, marking its best-ever half-year performance on record.

FBN Holdings’ half-year profit of N411.9 billion is more than double the N205 billion pre-tax profit reported for the same period in 2023.

FBN Holdings’ performance was driven by growth in interest income, which was 2.5 times more than the N197 billion reported a year earlier.

On its part, Access Holdings Plc, Nigeria’s largest bank by total assets, reported a pre-tax profit of N146.1 billion in the second quarter of 2024.

Combined with the first-quarter pre-tax profit of N202.7 billion, Access Holdings’ half-year profit now stands at N348.9 billion, compared to N167.6 billion reported during the same period last year.

In the company’s half-year audited filings published on the website of the NGX, the second-quarter results revealed year-on-year growth across all major income lines.

Zenith Bank reported its 2024 second quarter results showing pre-tax profits topped N406 billion in the second quarter of 2024 as forex related gains boosted the bottom line.

The profits represent a 370% increase year on year when compared to the N86.8 billion reported a year earlier.

Zenith Bank’s profits got a major boost from gains made on its trading books, which soared to N871.6 billion for the first 6 months of the year up from N77.9 billion a year earlier.

GTCO Plc released its second quarter audited financial statements showing a pre-tax profit of N494.5 billion nearly double the same profits reported a year earlier.

This represents the best second-quarter results reported thus far by any financial holding company or bank in Nigeria and follows a blistering N509.3 billion reported in the first quarter of the year.

In total, the bank has now reported a whopping N1 trillion in the first half of 2024.