Zenith Bank Plc, Access Bank Plc, and Guaranty Trust Holding Company (GTCO) are among the top-10 Nigerian Banks by Profit in the third quarter (Q3) of 2022 as sector players benefit from the aggressive rate hikes by the central bank.

The nine months financial statement of companies glimpsed from the Nigerian Exchange Limited according to data gathered by MoneyCentral, shows :

1.Zenith Bank posted a net income of N174.33 billion.

2. Access Bank, N137 billion

3. GTCO, N130.48 billion

4. United Bank for Africa or UBA, N116.04 billion

5. FirstBank Holdings, N91.28 billion

6. Stanbic IBTC, N55.18 billion

7. Fidelity Bank, N34.95 billion

8. Union Bank, N18 billion

9. Sterling Bank, N13.40 billion

10. Wema Bank N8.17 billion

It appears the Russia and Ukraine war and a rally in crude oil prices that are forcing central banks to hike interest rates to tame rising inflation is a boon for lenders whose earnings are improving even amid a stock sell-off as investors are wary of uncertainties surrounding the 2023 elections and a myriad of challenges.

When interest rates are higher, banks make more money, by taking advantage of the difference between the interest banks pay to customers and the interest the bank can earn on loans and by investing.

The Monetary Policy Committee of the central bank has raised the Monetary Policy Rate (MPR) by 100bps to 16.50% from 15.50% while keeping other parameters constant- Cash Reserve Ratio (CRR) at 32.50% and Liquidity ratio at 30.00%.

The largest banks in Africa’s largest economy collectively grew net income by 18.81 percent to N778.74 billion in September 2022 from N655.05 billion as at September 2021.

Their combined interest income was up by 29.19 percent to N2.42 trillion in September 2022 from N1.87 trillion as at September 2021.



https://moneycentral.com.ng/exclusive/article/zenith-access-gtco-are-nigerias-biggest-banks-by-profit-in-q3-2022/

Damnnn
See as the Bank dey use my money dey Buga