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BANKING & FINANCENEWSLETTER

13 Commercial Banks Post N118billion Profit Before Tax in Three Months

A total of thirteen Deposit Money Banks, DMBs, in Nigeria have announced N118 billion Profit Before Tax, PBT, in the first quarter 2016.
The PBT declared by these 13 banks fell by 13.4 per cent or N18.2billion recorded in prior first quarter of 2015, National Mirror findings revealed.
Union Bank of Nigeria, one of the struggling financial institution in the country recorded a significant increase in PBT as it rose by 101.2 per cent to N4.7 billion in Q1 2016 from N2.38 billion in Q1 2015.

Followed by Access Bank Plc, that declared an increase of 37 per cent in PBT from N16.5 billion in Q1 2015 to N22.58 billion in Q1 2016.

The remaining DMBs covered by our correspondent recorded decline in PBT attributed to severe macro-economy challenges that include removal of public sector funds via the Treasury Single Account (TSA) that has impacted the deposit (liability) side of banks operations; removal of Commission on Turnover (COT) which has always boost banks operating income. Other factors are unstable Central Bank of Nigeria (CBN) foreign exchange policy and declining income from loans/credit.

Unity Bank Plc announced the highest decline in PBT, dropping by 73.2 per cent to N972 million in Q1 2016 from N3.6 billion recorded in Q1 2015.

First City Monument Bank (FCMB) Group Plc announced a decline of 62 per cent in PBT to N2.2 billion from N5.8 billion in prior Q1 2015. Ecobank Transnational Incorporated and Sterling Bank Plc also recorded a decline of 30.6 per cent and 32.4 per cent in PBT to N20.6 billion and N2.8 billion from N30.5 billion and N4 billion in Q1 2015.

Diamond Bank Plc announced a decline of 20 per cent to N6.69 billion; FBN Holdings Plc reported a dropped of 18 per cent from N26.9 billion to N22.05 billion while Wema bank Plc PBT dropped by 17.9 per cent to N505 million in three months of 2016.

Others are Fidelity Bank Plc’s 14.5 per cent in PBT to N4 billion while Guaranty Trust Bank Plc PBT dropped by 6.1 per cent from N32.65 billion to N30.7 billion. Two major Tier I banks, Zenith Bank Plc and United Bank for Africa Plc announced a marginal decline of three per cent and 1.7 per cent in PBT respectively.

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