Kayode Tokede

Despite the challenges in the operating environment, four big financial institutions operating both in  Nigeria and across the globe generated N4.38 trillion profit before tax in the 2024 financial year, about 72.4 per cent increase over the N2.54 trillion declared in the 2023 financial year.  

 
The four financial institutions are:  Zenith Bank Plc, Guaranty Trust Holdings Company Plc (GTCO),  United  Bank for  Africa Plc (UBA), and Ecobank Transnational Incorporated (ETI).
Access Holdings Plc, however, awaits the Central Bank of Nigeria (CBN) to approve its 2024FY before releasing it to the investing public.

With profit before tax on the increase,  the four financial institutions saw total assets at N118.38 trillion in 2024, representing an increase of  54.5 per cent from the N76.6 trillion recorded in 2023 with Ecobank contributing about 36.6  per cent.
In 2024, these financial institutions were faced with a range of challenges, stemming from internal economic factors and global financial trends.

Notable challenges include: currency volatility and foreign exchange shortages, double-digit inflation and rising interest rates by the CBN; digital transformation and cybersecurity threats, and competition from Fintech and Mobile Money Operators (MMO).
Other challenges are power and infrastructure challenges, talent acquisition/retention, and geopolitical and global economic factors.

In the period under review, THISDAY gathered that these financial institutions leveraged interest income earned from investing in high-yield government securities, interest income from loans and advances to customers,  and foreign currency trading, among others to drive profit before tax.
It was also gathered that Zenith Bank in 2024FY emerged as the most profitable financial institution in  Nigeria, followed by GTCO.

Zenith Bank in 2024FY declared N1.33 trillion profit before tax,  up by 66.7 per cent from the   N795.96 billion declared in 2023, while GTCO posted N1.27 trillion profit before tax,  representing an increase of 108 per cent from N609.31 billion declared in 2023.

The Group Managing Director/CEO, of Zenith Bank, Dr Adaora Umeoji,  in a statement stated   “This year’s performance underscores our unwavering commitment to innovation and customer-centric solutions.
“We will also remain focused on deepening financial inclusion, enhancing service delivery, and creating value for our customers and stakeholders.”

On his part,  Group Chief Executive Officer, GTCO, Mr. Segun Agbaje in a statement, said; “Our strong performance for 2024 underscores the resilience and depth of our business, driven by a well-diversified earnings base across our banking and non-banking subsidiaries, all of which are P&L positive.

“Our capacity to generate sustainable high-quality earnings, maintain strong asset quality, and drive cost efficiencies reflects the soundness of our long-term strategy and disciplined execution. We have also prudently provided for all our forbearance loans, well ahead of the June 2025 timeline, whilst fully accruing for the windfall tax, further strengthening our balance sheet and enhancing financial resilience.

“We will continue to deepen our relationships with customers, leverage technology to deliver cutting-edge financial solutions, and accelerate the growth of all our business verticals—Banking, Funds Management, Pension, and Payments—to unlock new opportunities and create more value for our shareholders.”
While Ecobank announced  N N980.68 billion profit before tax in   2024, a growth of 160.5 per cent from N376.49 billion in 2023,  UBA reported  N803.73 billion profit before tax in 2024, about 6.08 per cent growth over the N757.68 billion recorded in 2023.

UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who expressed excitement at the results, stated that the 2024 financial performance demonstrates the bank’s continued focus on driving earnings growth, preserving asset quality, expanding business operations, and deepening market share.

 “Our continued investment in our highly diversified global network allows UBA to deliver high-quality, consistent earnings. Our businesses have been able to grow product and service income and expand our deposit base, allowing the Group to increase earnings while maintaining strong spreads and margins,” Alawuba highlighted.

Commenting on the  2024FY performance,  Investment Banker & Stockbroker, Mr. Tajudeen Olayinka said a significant portion of the banks’ recent profit gains came from revaluation gains on their net long US dollar income positions.

He stated that most banks have structured their balance sheets to maintain net long US dollar positions, which means that they can record gains whenever the currency is adjusted.

“Most tier-one banks currently hold a net long position in USDollar. This means that their foreign currency assets exceed their currency liabilities. Consequently, whenever there is currency revaluation, it will positively impact their profits,” Olayinka added.

From a shareholder’s perspective, the President, of Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie said listed big financial institutions on the NGX have shown resilient and improved performance in 2024 amid headwinds in Nigeria and Africa at large.

“These banks’ performance in 2024 is a reflection that the economy is doing well despite numerous challenges. I hope other sectors can maintain the resilience of these banks and drive the nation’s economy further.

“The dividend payout, most especially by GTCO, is welcome news to shareholders, and we are expecting the dividend payment policy of other banks,” Okezie added.

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