Despite Macroeconomic Challenges, Eight Banks Report N176.11bn Profit
Despite global and domestic macroeconomic challenges, eight Nigerian banks generated a whopping sum of N176.11billion as profit in the half-year ended June 30, 2022, an increase of 34.66 per cent over N130.78 billion profit earned in the corresponding period of 2021.
The banks are: FCMB Group Plc, Union Bank of Nigeria Plc, Jaiz Bank Plc, Wema Bank Plc, FBN Holdings Plc, Sterling Bank Plc, Ecobank Transnational Incorporated (ETI), and Unity Bank Plc.
The banks in the period under review contended with double digit-inflation and a hike in operating expenses that reduced profit.
The breakdown by percentage growth revealed that FCMB Group reported 80.7 per cent increase in profit to N13.66 billion in H1 2022 from N7.56 billion reported in H1 2021, while FBN Holdings declared N56.54 billion profit in H1 2022, representing an increase of 48.6 per cent from N38.05 billion in H1 2021.
Wema Bank reported 42 per cent increase in profit to N5.28 billion in H1 2022 from N3.72 billion in H1 2021, while Sterling Bank announced N8.01billion in H1 2022, an increase of 40.8 per cent from N5.69billion in H1 2021.
Also, Jaiz Bank reported N2.54billion profit in H1 2022, representing an increase of 26.8 per cent from N1.99billion in H1 2021 while ETI announced N77.3billion profit in H1 2022 from N62.55billion in H1 2021, representing an increase of 23.6 per cent.
In addition, Unity Bank announced 22.8 per cent increase in profit to N1.69 billion in H1 2022 from N1.38 billion in H1 2021, while Union Bank declared N11.07 billion profit in H1 2022, a growth of 12.6 per cent from N9.84 billion reported in H1 2021.
Commenting, the Group Chief Executive, FCMB Group, Mr. Ladi Balogun, stated that, “We continue to leverage our unique group structure to enable a technology-driven ecosystem of platforms, customers, partners, talents, and capital to contribute to the sustainable and inclusive growth of the communities we serve. We believe that despite the challenging domestic and global environment, FCMB Group is well positioned to sustain its performance trend in financial and non-financial metrics.”
On his part, the Group Managing Director, FBN Holdings, Nnamdi Okonkwo in a statement said, “FBN Holding’s continues to demonstrate resilient performance despite the challenging operating environment with an impressive improvement in revenue and profitability. Furthermore, we continue to see good progress across our performance metrics, which remain in line with our focus on driving sustainable growth.
“The Group remains committed in its transformation drive, which has resulted in stronger balance sheet and better asset quality with non-performing loans closing at 5.4per cent at H1 2022. Similarly, risk management capability remains robust across the Group supporting the drive for enhanced earnings for sustainable capital accretion.
“During the period, cost to income ratio remained flat y-o-y despite the inflationary and currency pressure, as we continue to focus on optimising overall efficiency. Our strategic intent remains unchanged in optimising opportunities that drive growth in revenue, profitability, capital accretion and overall operational efficiency that delivers sustainable value to our stakeholders.”
Also speaking, the Managing Director/Chief Executive officer of Wema Bank, Ademola Adebise attributed the remarkable performance to increased customer satisfaction the bank delivers through its investment in technology.
According to him, “Our performance has shown strong and promising results in the second quarter. Customers have continually shown trust in our proficiency, innovation, and service delivery even as the market gets more challenging.
“That said, I am confident, that despite increased volatility and uncertainty, we will continue to scale up, manoeuvre the environment, creatively manage our resources, and drive long-term, substantial returns for shareholders.”
The Ecobank Group Chief Executive Officer, Mr. Ade Ayeyemi in a statement explained that, “Our results for the first six months of 2022 reflect not only the benefits of the firm’s diversification but also our resilience and capabilities to continue serving our clients and customers in a challenging environment and still generate adequate returns responsibly for our shareholders.
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Ayeyemi added that, “We performed well because of our investments, including in technology, and Ecobankers’ continued dedication to meet customers’ financial needs, despite a challenging operating environment of high inflation, weakening African currencies, worsening government fiscal balances and lowering economic growth.”
Also, the Chief Executive Officer, Union Bank of Nigeria, Mudassir Amray, in a statement stated, “Following the successful acquisition of majority shares of the Bank by Titan Trust Bank, we are now focused on strengthening the core business and improving operational efficiencies across board. In parallel, we are going full throttle on integrating the two banks to form a ‘stronger union’ positioned to deliver value to all stakeholders, leveraging technology and digital innovation. The integration is expected to be completed by the end of the third quarter.
“Since taking the reins as Chief Executive Officer as at June 2nd, 2022, I am confident that the Bank has all the necessary ingredients to be a tier 1 bank. As we drive towards a seamless integration in the second half of the year, we remain committed to achieving our business objectives. We are excited about exploiting the synergies from the newly expanded franchise post integration.”