In the face of macroeconomic difficulties, Guaranty Trust Holding Company Plc (GTCO) and 11 other financial entities listed on the Nigerian Exchange Limited (NGX) achieved an estimated profit before tax (PBT) of N3.81 trillion for the half-year period ending June 2024. This marks a significant increase of 108.2 percent compared to the N1.83 trillion PBT recorded by these institutions in the first half of 2023.

During this timeframe, financial institutions operating in Nigeria and Sub-Saharan Africa encountered challenges such as inflationary pressures and ongoing increases in monetary policy rates, which adversely affected liquidity within the banking sector.

Despite these hurdles, five banks, including GTCO, Access Holdings Plc, Zenith Bank Plc, Stanbic IBTC Holdings Plc, and Fidelity Bank Plc, were the only ones to announce interim dividend payouts to their shareholders.

These five institutions declared a total of N198.35 billion in interim dividends for the half-year ending June 30, 2024, reflecting a remarkable 131.67 percent rise from the N85.6 billion declared in the same period of 2023.

Conversely, FBN Holdings Plc, Ecobank, Wema Bank Plc, FCMB Group Plc, Sterling Financial Holdings Company Plc, and Jaiz Bank did not declare any interim dividends for H1 2024. Notably, GTCO emerged as the top performer in terms of profit before tax during this period, followed by Zenith Bank, Ecobank, and FBN Holdings.

GTCO reported a PBT of N1.003 trillion in H1 2024, representing a 207 percent increase from the N327.4 billion reported in H1 2023, making it the first financial institution to surpass the N1 trillion mark in profit generation.

The Group Chief Executive Officer of GTCO, Mr. Segun Agbaje, expressed in a statement: "We take great pride in the advancements we have achieved as a prominent financial holding company.

"Amid the challenges present in the operating landscape, our performance during the first half of the year, which yielded our highest profit to date, underscores the resilience and flexibility of our business model.

"We are optimistic about the future and dedicated to utilizing our distinctive strengths as a dynamic financial services ecosystem to generate sustainable value for all our stakeholders, as we continue to align our business sectors—Banking, Funds Management, Pension, and Payments—for accelerated growth in key markets," he stated.

Zenith Bank reported a profit before tax (PBT) of N727.03 billion for the first half of 2024, marking a significant 108 percent increase from the N350.36 billion recorded in the same period of 2023. In contrast, Ecobank announced a PBT of N443.5 billion for H1 2024, reflecting an impressive 195 percent rise compared to the N150.3 billion reported in H1 2023.

Jeremy Awori, CEO of Ecobank Group, stated, “Our half-year results highlight the resilience of our diversified business model. Despite encountering macroeconomic challenges in certain markets, we increased our net revenues to $994 million and achieved a five percent growth in profit before tax, reaching $324 million.

“Our transformation agenda continues to be our primary focus, emphasizing enhancements in customer experience and driving efficiency and productivity. In the face of ongoing inflation, we attained an efficiency ratio of 53.6 percent.

“We are actively optimizing our risk-weighted assets, and our deposit base remains robust. Customer deposits grew by 13 percent in constant currency, totaling $19 billion, with current and savings accounts (CASA) making up 81 percent of total deposits. With a loans-to-deposit ratio of 54 percent, we are well-positioned to capitalize on credit opportunities that align with our risk appetite if necessary,” Awori added.

Awori emphasized that the bank's primary objective is to enhance customer experience and fulfill their financial requirements.

FBN Holdings reported a profit before tax of N411.99 billion for the first half of 2024, marking a remarkable increase of 100.9% compared to the N205.05 billion recorded in the same period of 2023.

In a statement, Nnamdi Okonkwo, the Group Managing Director of FBN Holdings, remarked, “FBN Holdings has once again achieved impressive financial results, even amidst a challenging macroeconomic and operational landscape.

The strong performance of our Group during this period is supported by our solid institutional capabilities, effective risk management strategies, and sustained business momentum, highlighting the resilience of our organization.

Importantly, gross earnings and profit before tax surged by 118.8% year-on-year and 100.9% year-on-year, reaching N1,402.5 billion and N412 billion, respectively, for the first half of the financial year, indicating a consistent growth trend.

These results underscore our ongoing dedication to enhancing profitability, improving performance, and delivering sustainable value to our stakeholders.

Despite the prevailing macroeconomic challenges, we remain determined and confident in our ability to navigate the landscape and exceed the expectations of our stakeholders.

In the review period, UBA reported a profit before tax (PBT) of N411.99 billion for the first half of 2024, reflecting a slight decline of approximately 0.5% from N403.6 billion in the same period of 2023. In contrast, Access Bank announced a PBT of N348.9 billion for H1 2024, marking a remarkable growth of 108.2% compared to N167.6 billion in H1 2023.

Fidelity Bank concluded the period with a PBT of N200.87 billion, representing a substantial increase of 163% from N76.33 billion reported in the corresponding period of 2023.

Similarly, Stanbic IBTC Holdings recorded a PBT of N147 billion in H1 2024, which is about a 77% rise from N82.99 billion in H1 2023.

Additionally, FCMB Group reported a PBT of N64.21 billion for H1 2024, reflecting a 68% increase from N38.23 billion in H1 2023.

Wema Bank also showed significant growth, announcing a PBT of N30.57 billion in H1 2024, which is a 153.47% increase from N12.06 billion in H1 2023.

Sterling Financial Holdings Company generated a PBT of N17.35 billion in H1 2024, a 51% rise from N11.46 billion in H1 2023, while Jaiz Bank reported a PBT of N11.56 billion for H1 2024, an impressive increase of 194.27% from N3.93 billion in H1 2023.

Commenting on the performance of financial institutions in H1 2024, Mr. David Adnori, Vice President of Highcap Securities Limited, attributed the banks' financial results to the naira's devaluation.

He noted that many banks have international ties, with a significant portion of their assets in dollars, which contributed to a notable rise in their profits.

"Historically, very few banks have reported a PBT exceeding N400 billion in a half-year. However, the devaluation and the shift from a pegged to a floating exchange rate have led to a considerable increase in declared profits for banks in the first half of 2024," he stated.

He noted that a considerable share of the banks' enhanced profitability can be linked to non-interest income.

The devaluation has impacted fees, commissions, off-balance sheet transactions, and other sources of non-interest income, which now play a crucial role in the banks' increased profits, he stated.

Investment Banker and Stockbroker, Mr. Tajudeen Olayinka, mentioned that a large part of the banks' recent profit increases stemmed from revaluation gains on their net long positions in US dollars.