E-Financial
Fidelity Bank, Others Top List of Most Capitalized Banks in Q3 2023
Fidelity Bank, leading financial institution, has been listed as one of most capitalized banks in Nigeria based on Q3 2023 financial results.
According to an article published in Thisday newspapers, the bank reported a capital base of N410.75 billion as of September 2023 against N314.3 billion in 2022.
Also featuring on the list are Zenith Bank, UBA, First Bank, Access Holdings, First Bank Holdings, Ecobank, GTCO Holdings, Stanbic IBTC Holdings, FCMB and Sterling Financial Holdings.
Following the announcement of the planned recapitalisation of commercial banks by the Central Bank Governor, Dr. Olayemi Cardoso, at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria on 24 November 2023, industry watchers have anticipated the announcement of capital raising exercises by banks.
Incidentally, Fidelity Bank had taken the proactive approach by securing shareholders’ nod to raise additional capital earlier in the year.
At an Extra-Ordinary General Meeting (EGM) held virtually on Friday, 11 August 2023, the bank’s shareholders unanimously approved a capital raising exercise via a Public Offer for up to 10 billion Ordinary Shares and Rights Issue of up to 3.2 billion Ordinary Shares representing one new share for every 10 shares held to new and existing shareholders respectively.
Below is the list of the 10 most capitalised banks as of September 2023:
- Zenith Bank – N1.92 trillion
The third quarter 2023 financial report of Zenith Bank Plc places the bank at the topmost position in terms of shareholders fund which it put at approximately N1.92trillion, as against N1.31trillion in 2022. The bank also ranks as Nigeria’s highest profit generator so far in 2023, with a pre-tax profit of N505 billion.
This eminent position was corroborated by Nairametrics, an online platform that noted that with a capital adequacy ratio (CAR) of 20.1 per cent as of September 2023, as against 19.8 per cent as of December 2022, the bank’s stability is not in question.
- UBA -N1.778trillion
Following Zenith Bank closely is United Bank for Africa, Nigeria’s second-highest profit generator this year, which is also the second most capitalised bank as of September 2023. The bank posted a total shareholders fund of N1.778 trillion as of Q3, 2023. In 2022, the figure was N922.1 billion, with a capital adequacy ratio of 28.3 per cent, which suggests stable financial health at the end of FY 202
- Access Holdings – N1.64 trillion
Access Holdings is another Tier 1 capital bank with a total equity of N1.64 trillion as opposed to N1.231 trillion in 2022. With this figure, Access Holdings ranks as Nigeria’s third-largest bank in terms of capital base. Its Nigerian subsidiary, Access Bank Nigeria has a total equity of N1.208 trillion as of September 2023, which is a stable figure in case of any recapitalisation exercise.
- First Bank Holdings – N1.37trillion
The ranking in terms of capital base listed FirstBank as the fourth on the list. The Third Quarter 2023 results of First Bank Holdings released in September 2023 showed that the parent company of First Bank Limited has a total equity of N1.37 trillion. However, its commercial banking arm, First Bank Limited has a capital base of N1.287 trillion. In 2022, the holding company posted a capital of 995.7billion.
- Ecobank- N1.37trillion
The bank’s third quarter 2023 performance result submitted to the Exchange last week showed it recorded a shareholders fund of N1.373 trillion as against N935 billion in the same period of 2022, placing it at the fifth position of the most capitalised banks.
- GTCO Holdings – N1.27trillion
GTCO Holdings, the parent group of GTBank has a total equity of N1.273 trillion, a year-to-date increase of 36.7per cent from the N931 billion recorded at the start of 2023.
While GTCO’s total equity is put at N1.27 billion, this is cumulative of all the group’s subsidiaries. However, its Nigerian subsidiary, GT Bank Nigeria holds a total capital base of N1 trillion as of September 2023 which is still a substantial figure ahead of any recapitalisation exercise.
- Stanbic IBTC Holdings – N471billion
Stanbic IBTC Holdings, the Nigerian subsidiary of Standard Bank Group is the parent of Stanbic IBTC Bank and it has a capital base of N471 billion as of September 2023. Its capital was N407.7 billion in 2022.
- Fidelity Bank Plc – N411 billion
With a capital base of N410.75 billion as of September 2023 against N314.3 billion in 2022, Fidelity Bank sits in quite a comfortable place ahead of any recapitalisation exercise for Nigerian banks.
In September 2023, the bank made a foray into international banking by acquiring the UK division of Union Bank of Nigeria.
- FCMB -N373.7billion
With a capital base of N373.7 billion as of September 2023 as against N275.8 billion in 2022, FCMB ranks as the 9th most capitalised bank in Nigeria. With a capital adequacy ratio of 16.0per cent as of December 31, 2022, FCMB’s CAR was just a little above the regulatory 15% required by the CBN.
- Sterling Financial Holdings – N165.84billion
Sterling Bank Limited is a full-service national commercial bank licensed by the Central Bank of Nigeria, and it’s a subsidiary of Sterling Financial Holdings Plc. The bank provides financial services to individuals, small businesses, and large corporations.
Sterling Bank’s capital base stood at N165.84 billion when total liabilities of N2.08 trillion were removed from total assets of N2.25 trillion. Its capital in 2022 was N154 billion.
Julius Arhebun, the Head of Agency Banking a Nigeria’s leading payment service bank, MoneyMaster, has disclosed that the promotion of financial inclusion is one of the core mandates of the service.
He said this recently as the bank introduced a new 100MB data offer for every transaction made in the offer, which is available for Glo customers using the bank’s USSD banking code, *995#. The initiative is meant to incentivize the unbanked and underbanked population to ease the creation of their own mobile wallet via its USSD banking platform.
According to him, the offer builds on the various financial education “we have been providing online and across our various customer touchpoints”.
He added that “with this new 100MB offer, we want to encourage Nigerians in the unbanked and underbanked pools to be financially included by having at least a mobile wallet. The account number of this mobile wallet is derived from their mobile number, and can be easily recalled”.
MoneyMaster PSB is a leading provider of innovative digital financial products and services that transform lives and contribute to sustainable living.
The PSB has the mission to deepen financial inclusion and has been instrumental in providing financial technology services to bridge the gap between the banked, underbanked and unbanked population.
The payment service bank recently unveiled a 10 percent data bonus for existing and new customers who are on the Glo network for recharges of N1000 or more. The offer has been adjudged one of the best in the country based on the volume of data on offer to customers. The data purchases have a 30-day validity while unused data can be rolled over upon next plan subscription.
As part of President Bola Ahmed Tinubu’s state visit to France, the Chairman of UBA Group, Tony Elumelu in the presence of President Tinubu and the President of France, Emmanuel Macron, signed a landmark business cooperation agreement with the French Finance Minister, Antoine Armand.
The agreement is a significant indication of support by the French Government for the development of UBA’s full banking operations in France.
Speaking at the signing ceremony, Tony Elumelu, the Chairman of UBA Group commented: ”This partnership reinforces our commitment to seamless international banking services for our customers, not just across the 11 Francophone African countries we serve, but Africa as a whole; and French and European customers transacting with Africa.
Expanding into France is a natural progression, with Paris serving as our European Union hub, as we continue to bring Africa and the world together, through innovative financial solutions. Paris will join London, New York and Dubai, as a critical component of our unique global network.”
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 45 million customers globally.
Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.
The National Pension Commission (PenCom) and the Pension Operators Association of Nigeria (PenOp) are taking steps to integrate workers who are not currently contributing to the Contributory Pension Scheme (CPS) into the Micro Pension Plan (MPP).
The initiative targets workers without any form of pension coverage, including those who have left previous employers under the CPS but wish to join the MPP.
The MPP is designed to allow self-employed individuals and those working in companies with fewer than three employees to contribute towards a pension for their retirement or in cases of incapacitation. Additionally, pension operators are developing incentives to make the MPP more appealing to potential contributors.
At the micro pension plan industry stakeholders’ engagement forum held in Lagos recently, organized by PenCom and PenOp, the Acting Director-General of PenCom, Omolola Oloworaran, highlighted the critical role of the MPP.
She said the event’s theme: “Reimagining Micro Pension Plan: Balancing Service, Policy, and Health” accurately captures the essence of the MPP as a transformative tool for improving the lives of Nigerians.
To maximise the impact of the MPP, PenCom is embarking on several initiatives like market segmentation, rebranding, advanced technology, incentives and others.
Oloworaran pointed out that with over 77.5 million workers in Nigeria’s informal sector, even a small increase in MPP participation could unlock billions of naira in savings, positively impacting individuals and the wider economy.
In his presentation on the “Overview of the Micro Pension Plan,” Babatunde Alayande, head of the micro pensions department at PenCom, emphasised the importance of providing incentives to make the MPP more attractive and accessible to its target market.
Okhueleigbe John, head of the micro pension unit at Stanbic IBTC Pension, stressed the need for tailored policies to promote the growth of the MPP. He also advocated more financial literacy, public-private partnerships, and innovative funding strategies to drive incentives for the scheme. Additionally, he called for a review of the pricing structure of micro pensions to make them more appealing to investors.
Dr. Shem Ouma of Kenya APSA also provided valuable insights, recommending that operators incorporate built-in benefits, ensure flexible payment systems for contributors, and leverage technology to drive the MPP forward.
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