9 banks 2017 H1 earnings hit N1.07trn

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Nine commercial banks grossed N1.07 trillion earning in the first half of the year surpassing N845.17 billion pooled same period in 2016.

InsideBusiness’ investigation shows Zenith Bank Plc led the pack recording the highest increase in gross earnings and profit before tax to leverage N7.8 billion interim dividend, which translated to 25k per share, the same amount paid in the corresponding period of 2016.

Zenith Bank reported gross earnings of N380.4 billion on June 30, 2017 up from the N214.8 billion reported on June 30, 2016, representing 77 percent.

Jaiz Bank’s gross earnings from Islamic financing transactions rose by 27 per cent to N3.2 billion in June 30, 2017 compared with N2.56 billion recorded in June 30, 2016.

Wema Bank’s gross earnings grew by 25.2 per cent to N30.37 billion from N24.26 billion in half year while Union Bank of Nigeria’s gross earnings climbed to N73.7 billion in June 30, 2017 from N60.1 billion in June 30, 2016.

 

The feat, Chief Executive Officer, Union Bank of Nigeria, Mr. Emeka Emuwa attributed to clear focus on enhancing the operational efficiency that grew the earnings by 23 per cent  in the first half of the year to N73.7 billion, up from N60.1 billion of 2016.

 

Furthermore, Diamond Bank’s gross earnings moved from N98.2 billion in June 30, 2016 to N114.1 billion, an increase of 16.1 per cent while Sterling Bank reported N57.1 billion gross earnings in half year of 2017 from N50.1 billion of first half of 2016.

 

To Sterling Bank, the feat owed to 20 per cent increase in interest income for the period under review.

 

Two other banks, FBN Holdings Plc and Unity Bank Plc reported marginal increase in gross earnings while First City Monument Bank Plc recorded drop in gross earnings.

 

For FBN Holdings Plc, its gross earnings gained 7.8 per cent to N288.8 billion as against N267.9 billion in June 30, 2016, driven essentially by a 37.3 per cent growth in interest income which was partly offset by a 46.3 per cent decline in non-interest income.

 

Commenting on the results, the Group Managing Director, UK Eke, said “FBN Holdings has again demonstrated its strong revenue generating capacity in the current economic environment reporting gross earnings of N288.8 billion – up 7.8 per cent.

 

“In line with our strategic focus on improving asset quality; cost optimisation; and, enhancing revenue generation, we are beginning to see improvement across a number of metrics associated with these initiatives.

 

The Commercial Banking business, First Bank of Nigeria Limited contributed 90.3 per cent to gross earnings of the Group.

 

First Bank of Nigeria Limited announced a gross earnings of N260.9 billion, up 6.9 per cent from N244.9 billion reported in June 30, 2016.

 

Commenting, the MD/CEO of FirstBank and subsidiaries, Dr. Adesola Adeduntan said, “The Commercial Banking group proved its overall earning capacity with a 6.9 per cent increase in gross earnings to N260.9 billion mainly driven by our core business operations with stronger margins.”

 

Also, Unity Bank gross profit appreciated by 7.3 per cent to N42.35 billion from N39.5 billion while FCMB, the only bank with drop in gross earnings among the nine banks reported 12.2 per cent decline in gross earnings to N77.5 billion in June 30, 2017 from N88.28billion in June 30, 2016.

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