Massive investments in short-term funding and other prudent measures increased the assets of 10 key commercial banks from N8.09 billion (an increase of 16.06%) to N58.51 billion in one year. 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 performance 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 (N10.4tn), while Wema Bank has the smallest asset base (N1.09tn).
Access Bank increased its asset base by N2.47 billion from N7.93 billion to N2.47 billion during the period under review.
GTCO also increased its assets by N570.09 million from 4.57 tons to 5.14 tons during the same period.
Stanbic IBTC, which had an asset base of 2.58 billion naira in September, increased last year from 170.49 million naira to 2.75 billion naira 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 N243.25 million.
Additionally, Wema Bank, which had an asset base of N863.64 billion in 2021, increased by N221.13 million to N1.09 billion in 2021.
Zenith Bank had an asset base of N8.48 billion as of September 31, 2020, but increased by N270.32 million to N8.75 billion as of September 31, 2021.
United Bank for Africa had an asset base of 7.06 tn as of September 31, 2020, but increased from 1.29 tn to 8.35 tn as of September 31, 2021.
Union Bank, which had an asset base of 2.24 billion naira in September last year, increased it 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 N7.13tn as of June 30, 2020, but increased it from N893.36bn to N8.02tn as of June 30, 2021. Our correspondent could not immediately access data from First Bank for the third quarter of this year, hence the use of the lender’s result for last year.
Ecobank, which had an asset base of 7.93 billion naira as of June 30, 2020, increased by 2.29 billion naira to reach 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 the chairman of the Foundation for Economic Research and Training, Professor Akpan Ekpo, said: “Even though there has been a pandemic last year, banks did not stop investing. Remember that a lot of the money the government gave went through the banks, so the banks were still in good shape despite the pandemic.
“The pandemic has not really affected banking activities. Currently, 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 the Pan-Atlantic University, Dr. Olalekan Aworinde, while commenting on the development: “Banks have fixed assets and current assets. We have to consider which of the assets are growing; both assets are good.
“The growth could come from their current assets, they’ve probably made a lot of loans. I don’t think the pandemic has had an impact on their current assets. But that growth could come from the appreciation of their fixed assets in terms of buildings and land, and the current interest rate could also benefit them.
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