Eight Banks Report N111.13billion Profit In H1 2016

Eight commercials banks which released results for the six months period ended June 30, 2016, recorded a total profit of N111.13 billion, a 14.3 per cent decline compared to N129.73 billion which had been recorded in the first half of 2016.

This result came even as the banking industry continued to post lower profit this year following the nation’s economic instability.

FBN Holdings, Union Bank, Fidelity Bank, Wema Bank, Sterling Bank, Ecobank Transnational, FCMB and Diamond Bank had all posted their first half results while Access, Guaranty Trust Bank and Zenith Bank had announced that they would be filing their half year results later, Leadership reports.

Of the eight banks that posted their results, Wema Bank, Union Bank and FCMB had recorded increases in their profits, while others recorded decline in profit after tax. FCMB had recorded the highest increase in profit while Ecobank Transnational recorded the largest decline in profit- after- tax in the six months’ period.

Ecobank which recorded an interest income of N180.057 billion saw its profit decline by 35.5 per cent to N31.08 billion from N48.17 billion which it made in the first six month period of 2015. Its total assets rose to N5.92 trillion up from N4.61 trillion as lending to customers stood at N2.85 trillion as at June 30, 2016 up from N2.32 trillion in the comparable period of 2015.

FCMB on the other hand, had posted a 88.7 per cent increase in profit- after- tax which rose from N8.3 billion to N15.66 billion in the six months’ period. The bank had recorded a decline in its interest income which dropped from N63.58 billion to N60.55 billion. Total Assets of FCMB had risen to N1.29 trillion as at June 30, 2016 compared to N1.16 trillion which it was as at end December 2015, as total deposits dropped from N700.21 billion to N689.34 billion.

Union Bank which posted an interest income of N44.34 billion in the first six months of 2016, higher than N42.69 billion which it made in the comparable period of 2015, recorded a 35.7 per cent rise in its profit- after- tax in the first half of the year under review.

The bank had made a profit of N8.76 billion higher than N6.45 billion which it made in the H1 of 2015 as its total assets grew to N1.15 trillion from N1.05 billion and deposits rose to N611.91 billion from N570.63 billion.

Wema Bank also posted a 10.6 per cent increase in its profit-after- tax which rose to N1.1 billion from N997.21 billion, while its assets declined to N391.76 billion from N396.74 billion on reduced lending to customers.

Fidelity Bank however saw its profit drop by 31.9 per cent. The bank which had posted an increased interest income of N57.16 billion as against N56.03 billion it made in the first half of 2015, saw its HI 2016 profit drop to N5.59 billion from N8.22 billion.

Diamond Bank which saw deposits from customers rise from 1.23 billion in 2015 to N1.33 billion recorded a 2405.5 per cent decline in profit- after- tax which dropped to N9.05 billion from N12.15 billion.

Sterling Bank also posted a decline in its profit which dropped by 2.5 per cent to N4.02 billion from N5.42 billion as its deposit and loan base as well as total assets rose. FBN Holdings Plc also saw a decline in profit.