INDUSTRY REVIEW: Wema leads best five performing banks, as GTCO, Access missing from H1 list

Nigerian tier-two banks dominated the top five best performing lenders in First Half (H1) 2022, with Wema Bank leading the onslaught against the tier-one creditors.

Ripples Nigeria analysed the financial performance of 13 commercial banks between January to June 2022, as well as their outing in the Nigerian stock exchange during the same period.

During the six months period, findings showed that they generated a combined N3.14 trillion revenue in H1 2022, recording 22.61% year-on-year growth from the N2.56 trillion reported in first half 2021.

The industry also saw 19.09% growth in Net Interest Income of H1 this year, recording N1.32 trillion. This surpassed the N1.10 trillion reported during the corresponding period last year.

Also, the growth spilled into the Profit After Tax which closed the first half of 2022 with N575.59 billion, representing a 14.30% increase when compared to the N503.56 billion grossed in H1 2021.

Banks Performance By Category

The top five best performing Nigerian banks were selected based on four key metrics; Gross Earnings, Net Interest Income, Net Profit and their Stock performance in H1 2022.

• In the four categories (metrics), Wema Bank featured thrice, topping two categories, and ranking third in the other – FCMB appeared in four, taking up the top and fifth spots once, and fourth position twice

• Stanbic IBTC was mentioned thrice, heading one category, taking the second spot in another, and placing fifth as well. Fidelity Bank appeared thrice, occupying the second spot twice and third, while FBN Holdings featured twice; third and second.

• Analysis of the industry showed only one tier-one bank, FBN Holdings, which made it into the top five best performing list, with UBA, GTCO, Zenith Bank and Access Corporation missing out.

• However, among the tier-one banks, only FBN Holdings and Access Corporation, made it into the top five of the categories outlined.

Gross Earnings Growth
• Wema Bank recorded the highest growth in gross earnings, which rose by 45.88% year-on-year, having generated N60.29 billion in the first six months of this year, surpassing the N41.33 billion recorded in H1 2021.

• Stanbic IBTC reported that its earnings grew to N133.70 billion during the period under review, which is 43.93% difference when compared to the N92.89 billion grossed in the first half last year.

• Fidelity Bank closed the first half of this year with N154.84 billion, recording a 37.88% year-on-year growth, overshooting the N112,30 billion the firm generated as revenue same period in 2021.

• FCMB joined the list after recording 33.96% growth in its H1 2022 earnings, which ended the period with N126.22 billion, in contrast to the N94.22 billion.

• Access Bank completed the top five list of this category due to the 31.42% growth recorded in the firm’s earnings, as it rose to N591,80 billion in H1 2022, against the N450.30 billion reported in the corresponding period last year.

Top Five Net Interest Income By Growth

• Stanbic IBTC led the category following an increase of 53.15% in its Net Interest Income, which ended this year’s first half period with N50.35 billion, rising above the N32.87 billion the firm recorded in H1 last year.

• Fidelity Bank reported that its Net Interest Income for the first half of 2022 was N75.63 billion. It recorded 50.38% growth when compared to the N50.29 billion of H1 2021.

• FBN Holdings management grew their Net Interest Income by 47.28% year-on-year, posting N152.91 billion in the review period, to surpass the N103.82 billion reported during the same period last year.

• Union Bank reported that between January to June 2022, it recorded N28.89 billion. This is 41.03% rise when compared to the N20.49 billion the firm posted as Net Interest Income a year before.

• FCMB saw its Net Interest Income increase from N42.99 billion of H1 last year to N60.16 billion in the first half of this year, reporting a 39.93% year-on-year growth.

Top Five Profit After Tax By Growth

• FCMB’s net profit between January to June 2022 rose by 80.80% year-on-year, ending the period with N13,66 billion, to surpass the N7,55 billion that the firm reported in H1 last year.

• FBN Holdings bagged a 48.60% increase in its profit after tax, which handed the lender N56.53 billion within the first six months of this year, more than the N38.04 billion it grossed last year H1.

• Wema Bank also featured on the list after growing its net profit by 42% at the end of June this year to N5.27 billion, up from the N3.71 billion that Wema Bank reported in the corresponding period of 2021.

• Sterling Bank saw a 40.80% year-on-year growth in its profit after tax that rose above the N5.69 billion recorded in H1 2021, to close with N8.01 billion during the same period this year.

Read also:INDUSTRY REVIEW: Five best performing Nigerian banks for Q2 2022

• Stanbic IBTC reported that its profit after tax for the year ended June 2022 was N30.66 billion, recording a growth of 36.05% when compared to the N22.54 billion posted in the first half of last year.

Top Five Performing Stocks By Growth

• Wema Bank didn’t just record impressive earnings in the first half of this year, it also improved shareholders’ investment by 343.05%, as high demand for its stock saw the value of the share rise from N0.72kobo to N3.19kobo. In six months, its market capitalisation rose to N41.91 billion from N9.25 billion, handing shareholders N32.65 billion gain.

• Fidelity Bank share grew by 34.11% between January to June 2022 from N2.55kobo to N3.42kobo, resulting into a gain of N21.73 billion. This increased Fidelity Bank’s market capitalisation from N73.88 billion to N95.61 billion.

• Ecobank’s shareholders closed the first half of this year with N34.86 billion gain after the equity’s share appreciated by 21.83%, to sell at N10.60kobo at the end of June, from the N8.70kobo it opened the year with. This led to the market capitalisation rising from N159.64 billion to N194.50 billion.

• FCMB’s performance in the stock market during the period was a bullish run with the share value soaring 15.71% from N2.99kobo to N3.46kobo. This lifted the firm’s market cap by N9.30 billion, dragging it from N59.21 billion to N68.51 billion.

• Union Bank completed the top five best performing stocks after its share grew 4.23%, raising the value to N6.15kobo from N5.90kobo between January to June this year. The hike in share price increased the firm’s market valuation to N179.09 billion, rising by N7.28 billion from N171.81 billion.

Conclusion on best five performing Nigerian banks

The top five best performing banks are ranked by average percentage of their total percentage growth in each metric covered in the report.
• Wema Bank (143.6%)
• FBN Holdings (47.94%)
• Stanbic IBTC (44.3%)
• FCMB (42.6%)
• Fidelity Bank (40.79‬%).

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