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+--- Thread: 10 banks record N250.1bn PBT in Q1 (/showthread.php?tid=16755)
10 banks record N250.1bn PBT in Q1 - Edoman - 04-30-2019
10 banks record N250.1bn PBT in Q1
2019 April 30, 2019 Share Tweet Pin 0shares
…Stanbic IBTC records 12% decline in PBT to N23.5bn ….Access Bank reports 64% increase in PBT to N45.1bn ….Fidelity Bank declares 34% increase in PBT Temitope Adebayo Not less than 10 commercial banks operating in the country have reported N250.1 billion Profit Before Tax (PBT) in unaudited first quarter (Q1) results for period ended March 31, 2019, as against N220.65 billion reported in prior first quarter results for the period ended March 31, 2018. When this development is compared with the corresponding period in 2018, it represents an increase of 13.3 per cent.
The Daily Times checks, however, showed that five Tier-1 banks contributed 83.5 per cent of the accumulative N250.1 billion PBT recorded during the period under review. Of the considered banks, Stanbic IBTC Holdings Plc was the only financial institution that reported decline in PBT while Access Bank that recently merged with Diamond Bank reported the most impressive performance in the period under review.
Further checks revealed that Stanbic IBTC holdings reported 12 per cent decline in PBT to N23.5 billion in Q1 2019 as against N26.69 billion reported in Q1 2018. Access Bank Plc reported 64 per cent increase in PBT to N45.1 in Q1 2019 from N27.4billion in Q1 2018 while United Bank for Africa Plc reported N30.2 billion PBT in Q1 2019, 14 per cent increase over N26.6 billion in Q1 2018. But FBN Holdings Plc reported three per cent increase in PBT to N19.3 billion from N18.8 billion in Q1 2018 while Zenith Bank Plc PBT’s added six per cent to N57.29 billion in Q1 2019 from N54 billion reported in Q1 2018.
However, Guaranty Trust Bank for the period under review reported N56.98billion in PBT from N52.6 billion reported in Q1 2018. The other Tier-2 banks, Wema Bank Plc and FCMB Group Plc reported double digit increase in PBT, while Union Bank of Nigeria reported marginal increase in PBT. For the period under review, Wema Bank reported 51 per cent in PBT to N1.3 billion from N883 million in Q1 2018 while FCMB Group’s PBT rose by 32 per cent to N4.3 billion from N3.26 billion in Q1 2018.
Fidelity Bank Plc reported 34 per cent increase in PBT to N6.67 billion in Q1 2019 while Union Bank of Nigeria on Monday posted 0.6 per cent increase in PBT to N5.4 billion in Q1 2019 as against N5.41 billion reported in Q1 2018. Commenting on the results, Chief Executive officer, Union Bank of Nigeria, Mr. Emeka Emuwa, in a statement, said: “Our focus in 2019 is to leverage our platform to deliver efficiency and seek to maximise value across all areas of the bank. “In a low yield environment, the Group’s Non-Interest Income growth compensated for the slowdown in interest income stemming from the optimisation of our loan portfolio in 2018.
Consequently, Profit before Tax (PBT) was maintained at N5.4 billion, consistent with Q1 2018. “In line with our priorities, we recorded a material improvement of 819 per cent in loan recoveries with N2.8 billion recovered during the period. Our asset quality continues to improve, with Non-Performing Loans (NPLs) down to 7.8 per cent from 8.7per cent as at December 2018. “We are employing a multi-pronged approach focused on increasing revenue and optimising cost to ensure we deliver enhanced performance in 2019.” Speaking on the Q1 2019 numbers, the Chief Financial Officer, Union Bank of Nigeria, Mr. Joe Mbulu said,
“The Group’s resilience in a challenged environment is demonstrated in these first quarter numbers. While Gross Earnings declined by five per cent to N37.7 billion from N39.5 billion in Q1 2018 due to loan book resolutions from the previous year, our Non-Interest Income grew by 39per cent from N7.8 billion to N10.8 billion driven by recoveries, credit-related fees and dividends from investments. “Operating Expenses increased marginally by four per cent QoQ, reflecting adjustment to staff compensation to strengthen our workforce; and increased depreciation expenses from technology investments to strengthen our treasury and transaction banking platforms in 2018, in line with our desire to lead in the transaction banking space. With the commencement of our Long-term Efficiency Acceleration Programme (LEAP), we expect to record savings on the expense line in 2019.
Read more at: https://dailytimes.ng/10-banks-record-n250-1bn-pbt-in-q1-2019/