Experts at Prudential Trust Company Limited, has predicted that the top three banks, namely Guaranty Trust Bank Plc, First Bank Plc and Zenith Bank Plc, will declare a combined profit of N300 billion for the 2012 financial year and N550 billion by the entire banking industry.
In their country report made available to THISDAY, the experts stressed that the Nigerian banking sector was poised to reward investors after successfully overcoming the challenges they faced during the 2008/2009 financial crisis.
Earlier in the year under review, Prudential Trust had predicted that the top three banks will declare a profit of N100 billion, but by half-year, the three banks, which control 54 per cent of total industry profit had exceeded the projection.
According to Prudential Trust, “As at June 2012, Guaranty Trust Bank Plc has declared a profit of N53 billion, First of Nigeria Bank Plc N49 billion and Zenith Bank Plc N45 billion. These three banks account for 54 per cent of profit in Nigerian banking sector. Adding Access Bank Plc’s N26 billion and United Bank for Africa with N24 billion to that top-tier group shows the profit meter.”
The leading five banks, they revealed, had 72 per cent of industry profit stating that if the Nigerian economy continued in its present rate and banks keep up the frenetic chase, N300 billion profit mark by the trio is much more possible.
While stressing that the banking industry was prepared for growth, they predicted that banks aggregate credit to the economy would grow by 53 per cent, credit to the private sector will be up 15.4 per cent while banks credit to the Federal and State Government in terms of bond purchase will increase by 51 per cent.
“After years of underperformance, followed by the 2008/09 global financial crisis, in turn followed by the corruption scandal, Nigeria’s powerful banking sector now seems to be better placed than ever before to help develop the country’s economy, “the experts said.
On the Nigeria’s economic prospect, they stated that the economy would continue its accelerated growth if the Federal Government continue with its reforms and the planned revival of the manufacturing sector.
They however stated that the nation’s Gross Domestic Product (GDP) might not witness any significant growth if the redenomination of the GDP is achieved this year.
“In our view, we do not see significant growth this year in GDP and other social indices. This will be further moderated if the redenomination of our GDP from 1990 is achieved this year. Political complicity of the central government with a view to 2015 ambitions could also be an unnecessary drag to overall progress and Development,” they said.