By Balogun Kamilu Lekan
According to Nairametrics, banks listed on the Nigeria Exchange earned N501.13 billion in profit after tax in the first six months of 2021, outpacing the N443.17 billion earned in the same period last year by 13.1%.
Despite economic headwinds that crippled business profits due to high operating costs, banks increased their bottom line during the period under review.
It should be noted that the top five banks in terms of profit after tax during the period are tier-one banks.
Below is a list of banks with the highest profits after tax
1. Zenith Bank – 111.41 billion naira
Zenith Bank earned N111.41 billion in net profit in the first half of the year, accounting for 22% of the total N501.13 billion made by some other thirteen banks. Its profit increased by 5% from N106.12 billion in H1 2021 to N106.12 billion in H1 2022.
A review of the company’s financial statements reveals a 17.1% increase in gross earnings to N404.76 billion during the period under review. However, its operating expenses increased yearly by 26.8% to N123.78 billion, while personnel expenses increased by 5.7% to N39.74 billion.
Tax expenses consumed N18.59 billion, which is 69.9% more than the N10.94 billion spent in the same period last year. Despite the increase in costs, the increase in the business’s fees and commission line, as well as trading gains, helped keep the bottom line elevated.
2. Access Bank – 88.74 billion naira
Access bank is the largest bank in Nigeria by asset value, with a profit after tax of N88.74 billion, accounting for 18% of the total profit posted by the banks under consideration. The newly restructured company’s net profit increased by 2.1% yearly to N86.94 billion in 2021.
Access Bank increased its gross earnings by 31.4% year on year to N591.8 billion, but operating expenses hampered its profit growth. Personnel expenses increased by 33.9% to N58.27 billion, while other operating expenses increased by 40.2% to N176.71 billion year on year.
It is worth noting that tax expenses fell 14.3% to N9.05 billion during the review period.
3. Guaranty Trust Holding – 77.58 billion naira
GT Bank garnered N77.58 billion in profit after tax around January and June 2022, accounting for 15% of thirteen other banks’ total net profit. On the other hand, the bank saw its bottom line fall 2.3% from N79.42 billion in the same period in 2021.
The company’s bottom line decrease could be attributed to operating and tax expense increases. GT Bank spent N63.57 billion on operating expenses during the review period, 17% more than the N54.34 billion in 2021.
The increase in its expense line outpaced the 15.1% increase in total revenue, while personnel expenses rose 7.6% year on year to N18.54 billion. Meanwhile, tax expenses increased by 88.3% during the review period to M25.69 billion.
4. United Bank for Africa (UBA) – 70.33 billion naira
United Bank for Africa (UBA) earned N70.33 billion in post-tax profit in the first half of the year, a 16.1% increase well over N60.58 billion earned in the same period in 2021. UBA contributed 14% of the total profit earned by thirteen other banks.
The bank increased its net interest income by 19.9% to N177.46 billion during the same period, while fees and commission income increased by 30.9% to N59.92 billion. Personnel costs increased by 22.7% to N52.29 billion, while other operating expenses increased by 22.6% to N96.57 billion.
On the other hand, tax expenses fell by 1.2% to N15.42 billion in the first half of the year.
5. First Bank – 56.6 billion naira
First Bank earned N56.6 billion in profit after tax in the first quarter of 2022, accounting for 11% of the total profit of the listed banks. Compared to the previous comparable period, its net profit increased by 48.6% from N38.09 billion in H1 2021.
First Bank also increased its net interest income by 47.3% to N152.91 billion, while its net fees and commission income increased by 1.7%. Meanwhile, personnel costs rose 7.9% yearly to N55.31 billion, while operating expenses increased 32.7% to N116.78 billion.
Disclaimer
The information in this article was curated from online sources. NewsWireNGR or its editorial team cannot independently verify all details.
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