Massive investments in short-term financing and other prudent measures have resulted in the assets of 10 major commercial banks growing by N8.09 trillion (16.06 percent) in one year to N58.51 trillion in one year.
Specifically, the combined assets of the 10 selected lenders grew from N $ 50.42 trillion in September 2020 to N $ 58.51 trillion in September 2021, according to an analysis of banks’ financial results 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 (N10.4 trillion) while Wema Bank has the smallest asset base (N 1.09 trillion).
Access Bank increased its asset base by 2.47 trillion in the reporting period. N of 7.93 trillion N to 2.47 trillion elevated.
GTCO also increased its assets in the same period by N 570.09 million from 4.57 tn to 5.14 tn.
Stanbic IBTC, which had an asset base of N2.58 trillion in September. last year grew by 170.49 million N to 2.75 trillion. N in the same period of this year.
Sterling Bank also increased its asset base from N 1.31 trillion in the third quarter of 2020 to N 1.55 trillion this year, representing a growth of N 243.25 million.
Wema Bank, which had an asset base of N 863.64 billion in 2021, also grew by N 221.13 million to N 1.09 billion in 2021.
As of September 31, 2020, Zenith Bank had an asset base of 8.48 trillion. N, which, however, increased by 270.32 million to 8.75 trillion by September 31, 2021. N has increased.
The United Bank for Africa had an asset base of 7.06 trillion as of September 31, 2020. N, which, however, will increase by 1.29 trillion by September 31, 2021. N to 8.35 trillion. N has increased.
Union Bank, which had an asset base of N2.24 trillion last September, increased it by N325.8 billion to N2.56 trillion by the third quarter of this year.
First Bank of Nigeria had an asset base of N 7.13 trillion as of June 30, 2020, but increased it by N 893.36 billion to N 8.02 trillion by June 30, 2021. Our correspondent was unable to immediately access First Bank’s data for the third quarter of this year, hence using the lender’s result for the last year.
Ecobank, which had an asset base of N $ 7.93 trillion as of June 30, 2020, grew by N $ 2.29 trillion to N $ 10.23 trillion in the third quarter of this year.
In response to the development, Prof. Akpan Ekpo, Professor of Economics and Public Policy at Uyo University and Chairman of the Foundation for Economic Research and Education, said, “Although there was a pandemic last year, banks have stopped investing. Don’t forget that much of the money the government was spending came through the banks, so the banks were still in good shape despite the pandemic.
“The pandemic didn’t really affect banking activities. The economy is currently not doing well, but banks are reporting profits. Because even during the pandemic, banks financed short-term investments. Therefore, their wealth increases. ”
Another Pan Atlantic University economist and lecturer, Dr. Olalekan Aworinde, commented on the development: “Banks have fixed and current assets. We have to take into account which assets are growing; both assets are good.
“The growth could come from their working capital, they probably made a lot of loans. I don’t think the pandemic has affected their current wealth. However, this growth could be due to the appreciation of their fixed assets in terms of buildings and land. And the current interest rate could also be beneficial for them. ”
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