The top three Nigerian banks, namely First Bank, GTBank and Zenith Bank are predicted to declare approximately N300 billion in net income for 2012, according to analysts.
This disclosure was made by Prudential Trust Company Limited, a financial services company based in Lagos. The company had at the beginning of 2012 predicted that the three banks would declare profits of N100 billion, however by the time the three banks released their half-year results, they had already exceeded that prediction.
According to Prudential Trust, “As at June 2012, Guaranty Trust Bank Plc has declared a profit of N53 billion, First of Nigeria Bank Plc N49 billion and Zenith Bank Plc N45 billion. These three banks account for 54 per cent of profit in Nigerian banking sector. Adding Access Bank Plc’s N26 billion and United Bank for Africa with N24 billion to that top-tier group shows the profit meter.”
Prudential also predicts a banking industry-wide profit of N550 billion, and expects the top three banks to hold 55% of the action.
The company stressed that the banking industry was prepared for growth, predicting that banks aggregate credit to the economy would grow by 53 per cent. Credit to the private sector is predicted to be up 15.4 per cent while banks credit to the Federal and State Government in terms of bond purchase will increase by 51 per cent.
“After years of underperformance, followed by the 2008/09 global financial crisis, in turn followed by the corruption scandal, Nigeria’s powerful banking sector now seems to be better placed than ever before to help develop the country’s economy, “the experts said.