How Bank Profitability Performed in Q1 2022 (1)

Findings by Twentyten Daily has shown that three Nigerian banks have recorded a cumulative amount of N104.8 billion in the first quarter of the year.

Profit Before Tax (PBT) is the measure of the company’s profit before the payment of corporate income tax. It is listed on the income statement of the company. The primary purpose was for the company owners to estimate how much profit the company is really making without factoring in varying tax rates and structures.

For the first quarter ending March 3, 2022, United Bank of Africa, FCMB Group Plc and GTCO grew theri PTB by 9.6 percent, 42 percent and 1.1 percent respectively.

These findings were extracted from the bank’s financial statement for Q1’22 released to the Nigerian Stock Exchange.


UBA recorded N44.5 billion PBT, for the first quarter of 2022. This  represents a 9.6 percent increase from N40.6 billion in the corresponding period of 2021, Q1’21.

The increased profitability was driven by 18.3% growth in gross earnings to N183.9 billion in Q’22 from N155.4 billion in Q1’21 as well as 18 percent growth in operating income to N125.9 billion from N106.6 billion in Q1’21.

Consequently, UBA recorded profit after tax of N41.5 billion and annualized 20.4% Return on Average Equity (RoAE).

The bank disclosed this in its financial statement for Q1’22 released to the Nigerian Stock Exchange which showed that the bank’s total assets also rose by 4.1% to N8.9 trillion in Q1’22 from N8.5 trillion recorded at the end of the 2021 financial year; while shareholders’ funds grew by 2.6% to N825.7bn from N804.8 billion in the same period.


The FCMB Group Plc recorded a 42 percent increase in PBT to N6 billion in the first quarter of 2022, Q1 ’22, from the N4.2 billion recorded in the same period in 2021.

Profit after tax was up by 45% to N5.2 billion from N3.6 billion in 2021 as impressive growth across all business lines supported this performance.

The three-month results also showed a significant leap in gross revenue by 34% to N58.3 billion, from N43.5 billion for the same period last year. Net interest income also followed the growth path as this grew by 33% to N28.1 billion from N21.2 billion for the first quarter of 2021.

In addition, non-interest income rose to N9.0 billion at the end of March 2022 from N8.2 billion for the same period in 2021.


GTCO Plc reported N54.3 billion in PBT for the first quarter of 2022. This represents a 1.1 percent increase compared to N53.7 billion posted in the corresponding period of 2021.

The Group’s unaudited financial statement for the period simultaneously released to the Nigerian Exchange Limited (NGX) and the and London Stock Exchange (LSE), showed that its deposit liabilities rose to N4.16 trillion, a 0.7 per cent increase over N4.13 trillion posted in Q1’2021.

The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N5.50 trillion and N908.8 billion, respectively.

Strong capital ratios and asset quality was sustained as Capital Adequacy Ratio (CAR), Non Performing Loan (NPL) ratio and Cost of Risk (COR) closed at 22.9 percent, 5.9 per cent and 0.1 per cent in March 2022 respectively from 23.8 per cent, 6.0 percent and 0.5 per cent in December 2021, respectively.

Reasons for growth

UBA’s Group Managing Director/Chief Executive Officer, Mr Kennedy Uzoka, explained that despite the myriad of economic challenges on the global front which shaped the first three months of the year, the bank’s business model continued to show resilience.

These challenges among others, he noted include the ongoing crisis between Russia and Ukraine that has resulted in a huge supply shock, pushing up commodity prices; and the hike in the interest rates in most advanced countries aimed at tackling spiraling inflation, sparking capital flow reversal from emerging and frontier markets.

While, Mr. Segun Agbaje, CEO, GTCO Plc, said: “Our first quarter results show a decent improvement across key revenue lines as well as other financial metrics, which demonstrates our ability to effectively navigate the evolving business landscape anchored on our strong business fundamentals.

“With this performance, we are optimistic about the rest of 2022 as we rapidly consolidate the gains of our new holding company structure to deliver superior stakeholder value.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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