Nigerian banks have started yielding positive gains with the impressive growth recorded in revenues from their cross-border operations in foreign countries.
Four Tier-1 banks which include Access Holding, GTCO, UBA, and Zenith Bank have led this growth pattern as their gross earnings grew by 114.40% Year-on-Year, reaching ₦7.988 trillion in 2023.
Nairametrics reports that this overall growth appears to be driven by impressive growth in gross earnings and a marginal YoY growth in net impairment loss from their foreign subsidiaries.
In 2023, the four banks generated a pre-tax profit of ₦627.027 billion from their foreign subsidiaries and contributed to a cumulative 233% YoY increase in pre-tax profit, totalling ₦2.892 trillion.
This figure represents a 329.61% YoY growth compared to ₦145.953 billion recorded in 2022.
4 Nigerian banks generate ₦627 billion from foreign subsidiaries
The four banks include:
1. Access Holding Plc
Access Holding Plc had the highest net pre-tax profits of ₦199.180 billion from its foreign operations in 14 countries.
The bank's huge profits stemmed from its operations in the UK and Ghana which gave rise to over 945% year-over-year growth in 2023.
2. UBA Plc
UBA Plc, with presence in over 20 African countries, generated a pre-tax profit of ₦165.697 billion from its foreign subsidiaries in 2023.
Data from the bank’s audited financial statement revealed that UBA Cameroon led with the highest pre-tax profit of ₦28.944 billion, followed by UBA Cote D’Ivoire with ₦25.856 billion.
3. Zenith Bank Plc
Zenith Bank Plc’s four foreign subsidiaries generated earnings of ₦131.486 billion during the period.
The bank's Nigerian operation generated the highest revenue which amounted to ₦1.87 trillion and contributed about 87% to the group’s total revenue.
4. GTCO Plc
Guaranty Trust Holding Company Plc, with operations in eight countries, reported a pre-tax profit of ₦130.664 billion in 2023.
Data from the bank’s audited financial statements show that the profit indicates a significant increase of 309.89% compared to the ₦31.878 billion recorded in 2020.