As the competition in the Nigerian banking space ranges on and banks increasing their sizes and profitability to the admiration of their stakeholders. The five tier-1 banks have remained in the forefront of growth and Return On Investment (ROI) to their shareholders
FirstBank, United Bank for Africa, Guarantee Trust Bank, Access Bank and Zenith Bank together goes with the acronym FUGAZ (from their first letters) has increased their dominance of the Nigerian banking industry with growth in Customer Deposit and Customer Loans & Advances.
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According to the recently released selected banking data by the National Bureau of Statistics (NBS) and figures from the half year results released by the publicly quoted Nigerian banks on the Nigerian Stock Exchange (NSE). Of the over 25 banks in the banking industry in Nigeria, the five tier 1 bank are currently responsible for 76% of total banking industry Deposit and 61% of total customers Loans as at half year 2019.
The five banks increased their control from 70% of Deposit and 58% of Loans and Advances as at December 2019 to the current rate as at June 2019.
Of the 5 banks, Access bank maintain the highest Customer deposits and Customer Loans & Advances. Coming from its recent acquisition of defunct Diamond bank, the bank is currently Nigeria’s largest bank with N6.5 trillion Assets base. It is also the only bank among the FUGAZ banks that attained the Central Bank of Nigeria (CBN) stipulated 60 percent Loan to Deposit Ratio (LDR) as at June 2019.
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Zenith Bank and First Bank are the second and third biggest banks in Asset base as at June 2019, the 2 banks had N5.9 trillion and N5.7 trillion in Asset respectively in H1 2019. Customer Deposit and Loan balances of the 2 banks are also second and third biggest. Both banks’ LDR is less than 60 percent as at June 2019.
UBA and GTBank had the forth and fifth biggest Asset base as at H1 2019 with N5.1 trillion and N3.6 trillion Asset respectively. The 2 Banks also had the forth and fifth balances in Customer Deposit and Loans & Advances in the same other. The 2 banks also had less than 60 percent LDR as at June 2019.
GTBank with the lowest balance sheet size among the FUGAZ Banks made the most Profit After Tax (PAT) in H1 2019. The bank has also been consistent in profitability, GTBank is Nigerian Banker most profitable bank in 2018 financial year.