Top 10 banks in Nigeria with highest profit after tax in H1 2022

The thirteen Nigerian banks listed on the Nigeria Exchange earned N501.13 billion in profit after tax in the first six months of 2021, a 13.1% increase over the N443.17 billion earned in the same period last year.

Despite economic headwinds that crippled business profits due to high operating costs, banks increased their bottom line during the period under review.

Recall that in the year’s second quarter, some banks were forced to reduce working hours to manage rising operating costs after the price of diesel hit record highs, causing an increase in the prices of most goods and services in the country.

Zenith Bank, Access, and Zenith Bank had the highest post-tax profit in the review period, while FCMB and Wema Bank had the highest year-on-year profit growth. It is worth noting that the top five banks in terms of profit after tax during the period are the FUGAZ, or tier-one banks.

The top banks with the highest profit after tax in H1 2022 are listed below.

#5: First Bank – N56.6 billion

First Bank posted a profit after tax of N56.6 billion in H1 2022, accounting for 11% of the total profit of the listed banks. In contrast to the previous comparable period, its net profit surged 48.6% from N38.09 billion recorded H1 2021.

First Bank also recorded a 47.3% growth in its net interest income to N152.91 billion as well as a marginal improvement of 1.7% in its net fees and commissions income. Meanwhile, personnel expenses gulped N55.31 billion, an increase of 7.9% year-on-year, while operating expenses jumped by 32.7% to N116.78 billion.

#4: UBA – N70.33 billion

United Bank for Africa (UBA) recorded a post-tax profit of N70.33 billion in the first half of the year, a 16.1% increase compared to N60.58 billion posted in the corresponding period of 2021. UBA accounted for 14% of the total profit aggregate by the thirteen banks.

Notably, UBA recorded a 19.9% growth in its net interest income to N177.46 billion while fees and commission income improved by 30.9% to N59.92 billion in the same period. Meanwhile, personnel expenses surged by 22.7% to N52.29 billion, while other operating expenses increased by 22.6% to N96.57 billion.

Tax expenses on the other hand declined marginally by 1.2% to N15.42 billion in the first six months of the year.

#3: Guaranty Trust Holding – N77.58 billion

GT Bank recorded a profit after tax of N77.58 billion between January and June 2022, representing 15% of the aggregated net profit of the thirteen banks. GT Bank however saw a 2.3% decline in its bottom line from N79.42 billion recorded in the corresponding period of 2021.

The decline in the company’s bottom could be attributed to operating and tax expenses increases. In the period under review, GT Bank spent a sum of N63.57 billion on operating expenses, 17% higher than the N54.34 billion incurred in the corresponding period of 2021.

The increase in its expense line dwarfed the 15.1% growth recorded in its total revenue, while personnel expenses increased by 7.6% year-on-year to N18.54 billion. Meanwhile, in the review period, tax expenses surged by 88.3% to M25.69 billion.

#2: Access Bank – N88.74 billion

The largest bank by asset value in Nigeria is a distant second on the list with a profit after tax of N88.74 billion, which accounted for 18% of the total profit posted by the banks under consideration. The newly restructured company recorded a marginal 2.1% growth in its net profit compared to N86.94 billion recorded in the corresponding period of 2021.

Access Bank grew its gross earnings by 31.4% year-on-year to N591.8 billion, however, the surge in its operating expenses affected the growth of the bank’s profit. Notably, personnel expenses increased by 33.9% to N58.27 billion while other operating expenses surged by 40.2% year-on-year to N176.71 billion.

It is worth noting that tax expenses declined by 14.3% to N9.05 billion in the period under review.

#1: Zenith Bank – N111.41 billion

Zenith Bank posted a net profit of N111.41 billion in the year’s first half, accounting for 22% of the total N501.13 billion generated by the thirteen banks. Compared to the corresponding period of 2021, its profit grew by 5% from N106.12 billion recorded in H1 2021.

A look at the company’s financial statement shows a 17.1% growth in its gross earnings to N404.76 billion in the period under review. However, its operating expenses surged by 26.8% year-on-year to N123.78 billion, while personnel expenses increased by 5.7% to N39.74 billion.

Meanwhile, tax expenses gulped a sum of N18.59 billion, which is 69.9% higher than the N10.94 billion spent in the corresponding period of last year. Despite the increase in its expenses, the increase in its fees and commission line of the business and trading gains helped keep the bottom line elevated.

Others on the list include