Home Sectors BANKING & FINANCE Four Deposit Banks Post Combined Profit of N85.5billion In Q1 2016

Four Deposit Banks Post Combined Profit of N85.5billion In Q1 2016

Four Commercial banks, Guaranty Trust Bank, United Bank for Africa, Union Bank and Zenith Bank, last week announced their first quarter unaudited results, raking in a combined profit before tax (PBT)of N85.49 billion for the period which ended March 31, 2016.

Of the four banks, Zenith Bank posted the highest PBT of N32.12 billion followed by GTB with N30.67 billion while UBA and Union Bank posted N18 billion and N4.7 billion respectively

A breakdown showed that Zenith Bank ended the period with gross earnings of N84.177 billion, up from N81.421 billion, while net interest income stood at N58.157 billion as against N42.631 billion in 2015. It recorded impairment charges of N2.557 billion, up from N2.1 billion in 2015.

The bank recorded a profit after tax (PAT) of N26.573 billion for the first quarter ended March 31, 2016, showing a decline of about 4 per cent compared to N27.680 billion recorded in the corresponding period of 2015.UBA grossed N74 billion and PBT of N18 billion for the three months ended March 2016, while Union Bank gross earnings hit N26.6 billion as against N29 billion in Q1 2015, excluding gain on sale of subsidiaries, at par with the prior year at N26.6 billion. The bank recorded a PBT of N4.7 billion as against the N4.9 billion in Q1 2015. Its PBT, however, increased by 85 per cent in Q1 2016 when gain on sale of subsidiaries was deducted from the Q1 2015 figures.

Commenting on Union Bank’s first quarter results, its chief executive officer, Emeka Emuwa, said, “Our first quarter results reflect steady progress on the execution of our strategic priorities. With the sale of non-banking subsidiaries near completion, the bank is now focused on growing and delivering results through its core banking business.

On his own part, group managing director and chief executive of UBA, Philips Oduoza, stated that “in addition to achieving better pricing on our assets and liabilities, we leveraged enhanced service channels in growing transaction banking volumes and fee income.”

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