Banking remains the heart of modern-day commerce. The ease and reliability at which funds can be distributed from sellers to buyers play a critical role in the sustenance of the commercial architecture of any business or nation.

Of course, traditional banking is changing fast –even in Nigeria. Technology-leaning enterprises like telecomasia are pushing the conventional boundaries of banking by accepting transactions in cryptocurrencies.

Of course, Nigeria would take a while to assume a dominant place in the swelling blockchain bandwagon. When they do, the leading banks will likely play a pioneering role in the adoption of fiscal blockchain applications.

This brings a bigger question: Which healthiest and biggest banks could potentially lead the charge?

In this piece, we will examine the best-performing banks in Nigeria for the first half of the 2022 fiscal year.

These banks have impressively soldiered on against the economic odds they faced, including the high cost of operations, increased fuel price, and brain drain with many of the professional talents leaving the country. 

So here come our elite picks.

1. Zenith Bank

Zenith Bank recorded a post-tax profit of 111.42 billion nairas in H1 of 2022. Their margin accounts for about 22% of the total profit made by Nigerian banks in the first half of 2022. Zenith Bank reported a 17.1% increase in gross profits and a 5% increase in total net profits.

This is an improvement over last year’s reports. The increase in the top line has strengthened Zenith Bank’s earnings per share by 9%. The growth in the top line has been attributed to interest income which grew by 27% in the period under review. 

Interest income came mainly from improved prices and the growth of risk assets. 

The bank’s expenses also increased, with the cost of operations and personnel increasing by 32%. 

2. Access Bank

Access bank runs a close second with net revenue of N88.74 billion. The bank experienced a 2.1% growth compared to its financial report for the corresponding period in 2021. 

Access bank is the bank with the largest access value in the country and accounts for 18% of the total income generated by the 13 banks listed on the Nigerian exchange.

Within this financial period, Access bank grew its gross earnings by 31.4% to earn N591.8 billion, which is significant growth for the brand. 

The bank was also successful in cutting down tax expenses by 14.9%. Inversely, personnel and operations cost increased by 33.9% (N58.27 billion) and 40.2% (N176.71 billion), respectively. 

3. Guaranty Trust Bank

Guaranty Trust Bank of Nigeria recorded a 77.58 billion naira profit after tax, accounting for 15% of the profits made by the banks in the first half of the year. 

Unlike the first 2, however, GTbank experienced a 2.1% decrease in its bottom line compared with the corresponding period in 2021. The bank also recorded a 15.1% growth in its total revenue for the period. 

Experts have attributed the decline in its bottom line to increasing operational costs. Operation expenses increased by 17%, personnel costs by 7.6%, and tax expenses by a whopping 88.3% in the period under review. 

However, the bank is fully committed to improving day-to-day expenses and providing great financial services to Nigerians. 

4. United Bank of Africa

The United Bank for Africa accounted for 14% of the total profits, with N70.33 billion in revenue after tax. This shows a 16.1% growth in its finances as compared to the same period in 2021. 

The bank performed well during this period, growing its net interest income by almost 20%. Also, its commission income grew by 30.9%, and tax expenses declined by 1.2%

UBA also experienced a surge in expenses, with personnel costs increasing by 22.7% and operating expenses by 22.6%. 

5. First Bank of Nigeria

Although not top of the list, First Bank experienced a surge in its net profit which grew by a whopping 48.6% compared to the same period last year. 

The bank recorded a net profit of N56.6 billion, which equals 11% of the aggregate profits made by the banks within the first half of the year.

The bank also recorded a 41.7% increase in interest income and a 1.7% growth in its commission and net fees. First Bank also experienced increased operations costs going as high as N116.78 billion as it jumped by 32.7% and 7.9% in personnel costs. 

Our top 5 performing banks had the largest percentages of the total aggregate profit after tax had been deducted. Their net profits showed they were able to grow their income despite the harsh economic realities. We are on the lookout for the financial reports by the end of the year.

What do you think of our list? Do you think these banks will retain their positions come H2, 2022? Please let us know in the comments section, and do not hesitate to follow us on social media.