Massive investments in short-term financing and other prudent measures increased the assets of 10 key commercial banks from N 8.09 billion (an increase of 16.06 percent) to N 58.51 billion in a year, reports revealed.
Specifically, the combined assets of the 10 selected lenders increased from N50.42 billion in September 2020 to N58.51 billion in September 2021, according to an analysis of banks’ financial results for the third quarter ended September 30. 2021.
The banks examined are Access Bank Plc, Guaranty Trust Plc, Stanbic IBTC, Sterling Bank, Wema Bank Zenith Bank Plc, Union Bank Plc, United Bank for Africa Plc, First Bank of Nigeria Limited and Ecobank Nigeria.
According to the analysis, Access Bank has the largest asset base (10.4tn N), while Wema Bank has the smallest asset base (1.09tN).
Access Bank increased its asset base by 2.47 billion naira from 7.93 billion naira to 2.47 billion naira during the period under review.
GTCO also increased its assets by 570.09 million Naira, from 4.57 billion Naira to 5.14 billion Naira during the same period.
Stanbic IBTC, which had an asset base of N2.58tn in September, increased last year from N170.49m to N2.75tn during the same period of this year.
Sterling Bank also increased its asset base from n1.31 billion in the third quarter of 2020 to n1.55 billion this year, indicating growth of n243.25m.
In addition, Wema Bank, which had an asset base of 863.64 billion naira in 2021, increased by 221.13 million naira to reach 1.09 billion naira in 2021.
Zenith Bank had an asset base of 8.48 billion naira as of September 31, 2020, but increased by 270.32 million naira to reach 8.75 billion naira as of September 31, 2021.
United Bank for Africa had an asset base of 7.06 billion naira as of September 31, 2020, but increased by 1.29 billion naira to reach 8.35 billion naira as of September 31, 2021.
Union Bank, which had an asset base of 2.24 billion naira in September last year, increased the same from 325.8 billion naira to 2.56 billion naira in the third quarter of this year. .
First Bank of Nigeria had an asset base of 7.13 billion naira as of June 30, 2020, but increased it from 893.36 billion naira to 8.02 billion naira as of June 30, 2021. Our correspondent n ‘ was unable to immediately access First Bank data for the third quarter of this year, hence the use of last year’s lender result.
Ecobank, which had an asset base of 7.93 billion naira as of June 30, 2020, rose 2.29 billion naira to 10.23 billion naira in the third quarter of this year.
Responding to the development, a professor of economics and public policy at Uyo University and chairman of the Foundation for Economic Research and Training, Prof. Akpan Ekpo, said, “Even though there has been a pandemic last year, banks have not stopped investing. Remember that much of the money the government distributed went through the banks, so the banks were still in good shape despite the pandemic.
“The pandemic has not really affected banking activities. Right now the economy is not doing well, but the banks are reporting profits. Indeed, even during the pandemic, banks were financing short-term investments. This is why their assets are increasing. “
Another economist and lecturer at Pan Atlantic University, Dr Olalekan Aworinde, commenting on developments, “Banks have fixed assets and current assets. We need to consider which of the assets are growing; both strengths are good.
“The growth could come from their current assets, they’ve probably given a lot of loans. I don’t think the pandemic has impacted their current assets. But this growth could be the result of the appreciation of their fixed assets in terms of buildings and land. And the current interest rate could also benefit them.