Customers’ Deposit, FX Revaluation Lifts 11 Banks’ Total Assets by 68% to N115.45tn

Kayode Tokede

Following a robust growth in customers’ deposit and foreign exchange revaluation, 11 banks listed on the Nigerian Exchange Limited (NGX) posted N115.45 trillion total assets in 2023, a growth of 68 per cent from N68.85 trillion in 2022.

The 11 banks are: Access Holdings Plc, FBN Holdings Plc, Zenith Bank Plc, United Bank for Africa (UBA) and Guaranty Trust Holding Company Plc (GTCO).

Others include:  Wema Bank Plc, Sterling Financial Holdings Company Plc, Stanbic Holdings Plc, FCMB Group Plc, Fidelity Bank Plc and Jaiz Bank Plc.

Analysis of the banks’ 2023 financial results showed that their balance sheet witnessed a significant expansion, with total assets nearly doubling, reflecting a strong deposit traction and the impact of foreign currency revaluation.

Nigeria banks sustained growth in deposit and lending to customers amid threat posed by Fintech companies revolutionized the banking sector with attractive commission on deposit and access to loans without collateral.  

Despite competition, the 11 banks generated N76.4 trillion deposits from customers in 2023, a growth of 66 per cent from N45.91 trillion declared in 2022.

Excluding Jaiz Bank, the remaining 10 banks Loans and advances to customers closed 2023 at N38.4 trillion, representing an increase of 58 per cent from N24.35 trillion reported in 2022.

With service provided across 22 countries including, the UAE, UK, and four representative offices in China, India, Lebanon and Paris, Access Holdings led other banks in total assets generation in 2023, contributing about 23 per cent of the overall N115.45 trillion.

In 2023 financial year, Access Holdings declared N26.7 trillion in total assets, a growth of nearly 78 per cent from N14.99 trillion reported in 2022.

According to the pan-African financial institution, customer deposits increased by 66 per cent to N15.3 trillion in 2023 from N9.2 trillion in 2022, driven by real growth in the deposit base and impact of the FX rates unification (accounted for c.14per cent of deposit growth).

“Term deposits grew to N5.69 trillion from N3.46trillion (65 per cent y/y growth) as we proactively negotiated and locked in rates for strategic deposits CASA account deposits increased by 66per cent y/y to N9.6 trillion (2022: N5.8trillion) of total deposits.

“Overall, CASA mix remained at 63per cent as we continued the expansion of our agency network for financial inclusion, enabling us to provide accessible and affordable financial services to underserved segments of the economy,” the bank explained in a presentation to investors.

The bank, according to THISDAY investigation led in loans & advances to customers that hit N8.96 trillion in 2023, a growth of 60.5 per cent from N5.6 trillion declared in 2022.

The bank in a presentation stated that loan expansion targeted towards robust non-cyclical sectors of the economy.

“Deliberate portfolio strategy to minimize exposure to FX headwinds while growing risk assets sustainably. 46.44 per cent of the growth is from devaluation and 14.01per cent increase is from real growth,” the bank added.

Coming close to Access Holdings is UBA with about N20.65 trillion total assets in 2023, a growth of 90.2 per cent from N10.86 trillion posted in 2022.

Key drivers of UBA’s total assets include N14.89 trillion customers deposits in 2023, a growth of 90 per cent from N7.82 trillion in 2022, and N5.23 trillion Loans and advances to customers in 2023, an increase of 67 per cent from N3.14 trillion reported in 2022 financial year. 

The Executive Director, Finance and Risk Management, UBA, Ugo Nwaghodoh explained that the valuation of the Naira by the Central Bank of Nigeria (CBN) was responsible for growth recorded by the bank’s balance sheet lines.

“I must say at that the valuation of the Naira, which is our reporting currency, is pivotal to some of the growth that we’ve recorded on some of these balance sheet lines. Loans and advances also up 61per cent to N5.5 trillion. Real growth on loans and advances was 15per cent and real growth on deposit was 56per cent,” he explained during UBA’s investors call.

Further checks by THISDAY revealed that Zenith Bank closed 2023 with N20.4 trillion total assets, a growth of 66 per cent from N12.29 trillion declared in 2022.

Zenith Bank, explained that, “We have continued to deepen our market leadership in key corporate and retail deposit segments as customer deposits increased by 69per cent from N9.0 trillion to N15.2 trillion in 2023.

“Our retail drive continues to yield dividends as retail deposits now constitute 46per cent of total deposits (compared to 44per cent in 2022), and grew by 77per cent from N3.97 trillion in 2022 to N7.04 trillion in 2023, also reinforcing increased customer confidence in the Zenith bran.

“Total assets increased by 66per cent from N12.3 trillion in 2022 to N20.4 trillion in 2023, largely due to growth in total deposits and the revaluation of foreign currency deposits. Gross loans grew by 71per cent from N4.1 trillion in 2022 to N7.1 trillion in 2023, due to the revaluation of foreign currency loans and the growth in local currency loans.

“As a result of our disciplined and diligent approach to risk assets creation and management, the loan growth did not significantly impact our NPL ratio which increased from 4.3per cent to 4.4 per cent despite the heightened risk environment and challenging operating environment.” 

Tier-1 banks with significant increase in total assets include:  FBN Holdings with N16.9 trillion total assets in 2023 unaudited result and accounts, a growth of 60 per cent from N10.6 trillion in 2022, while GTCO announced N9.69trillion total assets in 2023, representing an increase of 50 per cent from N6.45trillion in 2022.

Fidelity Bank led Tier-2banks in total assets, announcing N6.23 trillion total assets in 2023, an increase of 56 per cent from N3.99 trillion in 2022.

Fidelity Bank declared a total customer deposits that crossed the N4 trllion mark as deposits grew by 55.6 per cent from N2.6 trillion in 2022.

“The increase was driven by 81.1 per cent growth in low-cost funds. Despite the challenging operating environment, the bank reaffirmed its devotion to helping individuals grow, inspiring businesses to thrive and empowering economies to prosper by increasing Net Loans & Advances to N3.1 triilliin from N2.1 trillion in 2022.

“Despite the growth in its loan portfolio, Regulatory Ratios were maintained well above the required thresholds, with liquidity ratio at 45.3per cent from 39.6per cent in 2022FY and capital adequacy ratio (CAR) at 16.2per cent compared to the minimum requirement of 15 per cent,” Fidelity bank added. 

Stanbic IBTC Holdings followed Fidelity Bank with N3.03 trillion total assets in 2023, 70 per cent growth from N3.03 trillion in 2022, while FCMB Group in its unaudited 2023 results announced N4.4 trillion total assets, a growth of 48 per cent from N2.98 trillion in 2022.

Other Tier-2 banks: Sterling Financial closed 2023 unaudited with N2.53 trillion total assets, a growth of 37 per cent from N1.866 trillion in 20222; Wema Bank announced N2.25 trillion total assets in 2023, a growth of 56 per cent from N1.44 trillion in 2022 while Jaiz Bank closed 2023 unaudited results with N579.5 6billion in total assets, a growth of 53 per cent from N379.82 billion reported in 2022. 

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