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- The Nigerian banking sector has seen improved customer confidence in the first quarter of 2024
- Reports by various commercial banks in Nigeria show that the banks increased customer deposits by N21 trillion in the first three months of 2024
- Zenith Bank, Access Bank, UBA, and other commercial banks in Nigeria saw their customer deposits rise in the period under review
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
As a mark of renewed customer confidence in the banking industry, Nigerian banks increased deposits by N21 trillion in the first quarter of 2023, raising banks’ holdings to N136 trillion
The information was contained in audited reports and regulatory filings by commercial banks and their holding firms.
Source: UGC
Banks' customer deposits rise in 2024
Per the reports, the total deposits in the banking sector increased by 63% from N70.5 trillion in 2022 to about N115 trillion in 2023.
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Data from the banks to the Nigerian Exchange Limited (NGX) disclosed impressive growth across all tiers of banks, with middle-tier and new banks competing with the first-generation and largest banks.
According to reports, from tier 1 to tier 2, all banks have recorded steady growth, as the report shows.
Top Nigerian banks with the highest customer deposits
Zenith Bank’s total customer deposits rose by 69% from N8.98 trillion in 2022 to N15.17 trillion in 2023 to close March 2024 at N16.78 trillion.
Guaranty Trust Holding Company doubled its deposits since 2022 from N4.6 trillion in 2022 to N7.55 trillion and N9.2 trillion in 2023 and the first quarter of 2024, respectively.
United Bank for Africa’s deposits grew from N10.86 trillion in 2022 to N14.9 trillion in 2023, closing at N18.4 trillion in March 2024.
Reports say FMCB has grown deposits steadily from N2.07 trillion in 2022 to N3.4 trillion in 2023 and N3.7 trillion in the first quarter of 2024.
New banks compete strongly
Premium Trust Bank, one of Nigeria’s newest banks, grew its deposit base by 382% from N55 billion in December 2022 to N265 billion in December 2023, closing the first quarter of 2024 at N309 billion.
Fidelity Bank saw its customers’ deposits increase steadily from N258 trillion in 2022 to N4.02 trillion in 2023, closing the first quarter of 2024 at N4.71 trillion.
Access Holdings’ customers’ deposits jumped from N11.3 trillion in 2022 to N19.8 trillion in 2023 and N24.7 trillion in March 2024.
Sterling Holding Financial Company exceeded the N2 trillion mark to N2.15 trillion in the first quarter of 2024 from N1.4 trillion and N1.8 trillion in 2022 and 2023, respectively.
The rise in customers’ deposits made it easier for banks to increase lending to the private sector, especially SMEs, and supported the growth of the Nigerian economy.
Foreign exchange turnover rises
Legit.ng earlier reported that The Nigerian naira lost about 6.43% of its value in July, trading at the lowest rate of N1,608.73 per dollar.
Data from the FMDQ Exchange shows that the local currency performed at a four-month low of N1,500.32 under the review period and a high of N1,612.12, exceeding the N1,600 threshold.
The naira’s depreciation came despite efforts by the Central Bank of Nigeria (CBN) to prop up its and improve liquidity in the market via FX sales.
Source: Legit.ng
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