The 5 biggest banks in Nigeria otherwise referred to as Nigeria tier 1 banks namely: Access Bank, First Bank, GTBank, UBA and Zenith Bank (In alphabetical order) together posted an increase of N32.7 billion in their quarter 1, 2019 Profit After Tax (PAT). This figure represents a 21.5 percent increase in the top lenders’ profit in Q1, 2019 over Q1, 2018 figures.
The tier 1 banks who also controlled more than 70 percent of the the total bank deposit in Nigeria have continued to dominate the banking space amid confidence from the banking public. The banks have use every opportunity to increase their sizes and profitability as well as dominate one another in their fierce competition.
Branch expansion, Mergers and acquisitions, establishment of subsidiaries in other African countries and Investment in technologies (AI) and other cost cutting measures are some of the weapons used by the Nigeria tier 1 banks to outwit one another. Exceptional customer services and e-presence are the more potent weapons used lately.
• Access bank expectedly have the highest growth in PAT in Q1, 2019 when compares to Q1, 2018. The bank grew its profit by 86 percent largely because of its acquisition of defunct Diamond Bank.
• UBA had a 21 percent growth in its Net Profit for Q1, 2019 when compared with Q1, 2018. The bank attributed the growth to the profits from its subsidiaries in other African countries. The Chairman of the bank was quoted as saying that “I am happy that the bank is now living up to its pan-African nature”.
• GTBank, another of the Nigeria tier 1 banks had a growth of 10 percent in its PAT for Q1, 2019 when compared to profit for same period in 2018. Gtbank is one bank that have always rides on technology to its customers delight. Small wonder the bank won 8 of the 12 e-payment awards available at the CBN, EPIS awards 2019.
• First Bank’s had a growth of 6.9 percent in Net Profit in Q1, 2019 when compared to its Net Profit for Q1, 2018. The 125 year old but dynamic and dependable bank rides on 83 percent rise in its e- business fee to grow its profit in Q1, 2019.
• Zenith bank grew its PAT by 6.6 percent in Q1, 2019 when compared to its PAT in Q1, 2018. Zenith bank is one of the most innovative bank in Nigeria today when it comes to banking technology and that pave way for the banks continues profitability. The chairman of Zenith also recently explained how e-payment channels gave the bank an edge over competition.
Nigeria tier 1 banks