Following the outstanding results that some of the best performing banks in Nigeria published the previous year, the country’s banking sector continued its record-breaking accomplishments into the first half of 2022.
A net profit of N1 trillion was reported by the 13 banks listed on the Nigerian Exchange in 2021, up from N887.1 billion in 2020.
The thirteen banks reported an overall profit after tax of N501.1 billion in the first six months of 2022. An increase of 13.1% from the N443.17 billion reported in the same period of 2021.
The energy crisis caused a significant increase in the operational costs of businesses in the country.
Some banks were forced to ration their operating hours in an effort to control the rise in costs, helping the banks to increase their bottom line despite the economic headwinds plaguing the global economy.
A preliminary examination of the nation’s GDP reveals that the banking sector expanded by 20.06% in real terms year over year in Q2 2022, compared to the previous quarter’s growth of 25.43%.
The banking industry contributed 3.2% of the nation’s GDP, or N2.32 trillion, according to 2021 estimates.
Without further ado, let’s take a look at the five best performing banks in Nigeria.
1. Wema Bank
With a weighted average score of 2.83 points during the first half of the year compared to the same period last year, Wema Bank was the best performing bank in Nigeria.
The bank growth rate of 30.2% in client deposits, made it top the list of banks.
The bank is the second leading in total asset growth, loan book growth, and profit after tax (PAT) growth, with increasing percentages of 13%, 19.9%, and 48.7%
The bank got the third position as one of the leading bank by return on average equity.
2. Stanbic IBTC Bank
With a composite score of 3.83 points, Stanbic IBTC came in second. The bank topped the list of banks in the first half of the year for overall asset growth, increasing its asset value by 14.8% to N3.15 trillion from N2.74 trillion at the start of the year.
The bank took the first spot in the cost-to-income ratio as well. They had a 10.37% drop from the 70.26% reported in the first half of 2021 to 59.89%.
The metrics using Leading banks by return on average equity the bank came second position with an increase in +3.81%.
In the leading banks by loan book growth, the bank was ranked as the fourth with a percentage of +15.4%, while in profit-after-tax (PAT) growth, they ranked fifth with a percentage of +36%.
3. First Bank
With 4.5 points, First Bank came in third place. With increases of 17.3% and 48.6% in its loan book and profit after taxes, the bank came in third place.
They came fourth as one of the leading banks by return on average equity with an increase of 2.91%.
4. Access Bank
The most customer loans were made by Access Bank, totalling N4.62 trillion. Access Bank topped the list of banks with the biggest profit after taxes.
The bank ranked third in leading banks by total asset growth with a percentage of 12.5%.
Access bank also ranked fourth in customer deposits growth with an increase of 12.7%.
5. First City Monument Bank (FCMB)
The bank with the largest profit increase throughout the reviewed period was FCMB, which came in first place.
The bank came first position as one of the leading banks by profit after tax (PAT) growth and return on average equity with an increase of 80.8% and 45%.
Using the metrics of Leading banks by the cost-to-income ratio, the bank came second with a decline of 10.2%.
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