In the first nine months of this year, 24 companies listed on the Nigerian Exchange Limited collectively amassed around N13.94 trillion. Notably, the top revenue-generating entities included MTN Nigeria, Access Bank, and Dangote Cement.
The banking sector notably contributed significantly to this revenue growth during this period. This marks a notable increase of 53.1% from the previous year’s earnings of N9.1 trillion, despite encountering significant challenges. Pascal Oparada holds a decade-long experience in covering various fields such as Technology, Energy, Stocks, Investments, and the Economy.
MTN emerged as the leading gainer among top companies, recording a revenue of N1.77 trillion in the nine months of 2023, indicating a 22% growth from the N1.46 trillion in the same period in 2022. Additionally, Access Bank reported revenue of approximately N1.59 trillion during the same period, marking a substantial 75.7% increase from the N906.93 billion generated in the prior year. The Nigerian stock market faced significant challenges, including high inflation, reaching 26.72% in September 2023 from 20.77% a year earlier, and currency depreciation resulting from the government’s currency float. These factors impacted most stocks, with many companies experiencing Forex losses due to economic reforms.
While the banking sector benefitted from the Central Bank’s Forex policy, manufacturing and FMCGs incurred substantial losses. Despite these challenges, the combined pre-tax profit declared by the 24 companies totaled N3.05 trillion, marking a 54% increase from N1.99 trillion reported in the nine months of 2022.
In the recent financial period, Zenith Bank emerged as the top profit earner among companies, recording a pre-tax profit of N505.04 billion in the first nine months of 2023. UBA followed closely, reporting a pre-tax profit of N502.09 billion, significantly up from N262.54 billion previously. The banking sector exhibited strong financial performance, contributing the highest revenue and pre-tax profit. The eight leading banks on the local bourse collectively generated N6.96 trillion in revenue during this period, marking a substantial 93% increase from the N3.6 trillion recorded in the same period in 2022.
These eight banks contributed approximately 49.9% of the total N13.94 trillion generated by all companies. Additionally, other eight banks, including Guaranty Trust Holdings Plc, FBN Holdings Plc, FCMB Group Plc, Fidelity Bank Plc, and Sterling Holdings, reported a combined N2.2 trillion in pre-tax profit in the nine months of 2023, displaying a substantial 159.99% increase from N841.97 billion reported in the same period in 2022.
Moreover, there is support from the presidency for the Central Bank of Nigeria’s proposed consolidation in the banking sector. It’s anticipated that this move will significantly contribute to the growth of Nigeria’s economy.
Five days following the statement by CBN Governor Olayemi Cardoso about the central bank’s intention to request banks to increase their capital, the President made remarks on Tuesday, November 28, 2023, during the 40th Anniversary Celebration of the Guardian Newspapers in Lagos. He emphasized the necessity of revisiting the capital adequacy of banks.