Commercial bank deposits jump 20.20% in Q1 2022

Nigerian banks received a combined deposit of N48.64 trillion naira from customers across different types of accounts in the first quarter (Q1) of 2022, or 20.20% above the N40.47 trillion collected during the comparable period of 2021. Analysis of total deposits received from customers by account type for Nigerian lenders revealed that 47%, or the equivalent of N22.87 trillion, was paid into the current account.

Once disaggregated, customers deposited N10.38 trillion in term account and N12.16 trillion in savings account at listed banks. Nigeria Exchange Limited (NGX). According to Gloria Fadipe, Head of Research at FCMB, deposits represent bank funds used to earn money. She further noted that deposits have a direct relationship with bank lending, stating that “if deposits go up, loans go up.”

Fadipe explained that depending on the types of accounts, it is better for banks to have cheap deposits: current accounts and savings accounts.
“The savings account attracts less than one percent and people don’t care because they withdraw too many times, but the current account attracts more. The higher the bank capital ratio, the lower the bank’s total funding cost, and the more profitable the bank is, and banks always try to make capital grow. So if the deposits that are going up are either savings deposits or current deposits, you can see the effect on the cost of funds which would be positive because it will go down,” she added.

Innocent Unah, executive director of Graham Lynch Capital, said: “Positive deposit growth can mean that the number of customers in banks increases, that existing customers deposit more money with the bank, that the bank generates customers deposit of its competitors, or more before. the unbanked population is now banked.
Unah explained that the implication is that banks will be able to originate more loans and support businesses and generate more income from increased risk assets.
Banks recorded positive growth in customer deposits, with Ecobank leading the pack with an increase of 11.11% to N8.2 trillion, followed by Access Bank with an increase of 31.87% to N7.49 trillion. and Zenith Bank with growth of 27.87% to 7 naira. 0.25 trillion in the first quarter of 2022.

Ecobank

Ecobank Transnational Incorporated recorded customer deposits of N8.2 trillion in the first quarter of 2022, the highest reported by Nigerian banks during the reporting period. The bank’s total customer deposits represent an increase of 11.11% from the 7.38 trillion naira recorded in the comparable period of 2021.
Data extracted from the bank’s unaudited financial statements, provided by the Nigerian Exchange Limited, revealed that, based on account types, current deposits contributed the bulk to total customer deposits of 63.78 % or 5.23 trillion naira in the quarter. Other types of accounts, such as time deposits and savings deposits, stood at N1.52 trillion and N1.44 trillion respectively in the first quarter of 2022.

Access Bank

Second highest on the list is Access Bank, accounting for 7.49 trillion naira in customer deposits in the first quarter of 2022, showing a growth of 31.87% from the 5.68 trillion naira recorded in the first quarter of 2021. Based on account type, term deposits contributed the most during the quarter, accounting for 42.99% of customer deposits.
In the first quarter of 2022, term deposits stood at N3.22 trillion, while savings deposits and current deposits stood at N2.76 trillion and N1.52 trillion respectively.

Zenith Bank

Total customer deposits recorded by Zenith Bank in the first three months of 2022 stood at 7.25 trillion naira, an increase of 27.87% from the 5.67 trillion naira recorded in the first three months. first months of 2021. A breakdown of customer deposits by bank showed that current deposits contributed the most, accounting for 55.45% of total customer deposits.

Also read: Bank credit to the private sector up 32.81% in 3 years

Current deposits stood at 4.020 billion naira, term deposits at 537 billion naira and savings deposits at 1.280 billion naira in the first quarter of 2022.

United Bank for Africa (UBA)

Deposits recorded by UBA with customers stood at 6.65 trillion naira in the first quarter of 2022. This is an increase of 14.85% from the 5.79 trillion naira the bank recorded in the comparable period of 2021. Based on account types, current deposits accounted for the largest portion of total customer deposits by 59.55%, amounting to N3.96 trillion in the first quarter 2022. Time deposits and savings deposits stood at N962 billion and N1,730 billion in the first quarter of 2022.

First Bank of Nigeria (FBN)

First Bank reported an increase in customer deposits of 20.39% to 6.14 trillion naira in the first quarter of 2022 from 5.10 trillion naira recorded in the same quarter last year. By account type, current deposits stood at N2.13 trillion, or 34.69% of total customer deposits in Q1 2022. Time deposits and savings deposits stood at N1 N170 billion and N1,850 billion in the first quarter of 2021. respectively.

Guarantee Trust Holding Company (GTCO)

GTCO reported an increase in customer deposits of 12.50% to 4.05 trillion naira in March 2022 from 3.60 trillion naira in March 2021. The financial services provider recorded the highest customer deposits in the current account deposits segment, which amounted to N2.27 trillion in March 2022. first quarter 2022, accounting for 56.05% of total customer deposits. Time deposits and savings deposits during the quarter stood at N566 billion and N1.21 trillion respectively.

Loyalty bank

Customer deposits recorded by Fidelity Bank in the first quarter of 2022 amounted to 2.07 trillion naira, an increase of 18.29% compared to 1.75 trillion naira in the first quarter of 2021. According to account types, current deposits stood at 758 billion naira, accounting for the largest chunk of 36.62 percent. Time deposits and savings deposits stood at N395 billion and N475 billion respectively in the first quarter of 2022.

First City Monument Bank (FCMB)

FCMB reported an increase in customer deposits of 18.94% amounting to 1.57 trillion naira in the first quarter of 2022, compared to 1.32 trillion naira in the comparable period of 2021. Based on the types of accounts, the bank recorded the highest customer deposits of current deposits accounting for 42.93% in the first quarter. Current deposits stood at 674 billion naira, term deposits at 475 billion naira and savings deposits at 423 billion naira during the quarter.

Union Bank

Data extracted from unaudited financial statements provided by the Nigerian Exchange Limited (NGX) showed that Union Bank recorded a 16.96% increase in customer deposits to N1.31 trillion in March 2022 from 1, 12 trillion naira in March 2021.
The financial services provider recorded the most customer deposits with current account holders, with current deposits accounting for 39.24% of total customer deposits during the period under review. Current deposits stood at 514 billion naira, term deposits at 399.64 billion naira and savings deposits at 399.61 billion naira in the first quarter of 2022.

Sterling Bank

Sterling Bank recorded an increase in customer deposits of 16.35% to 1.21 trillion naira in the first quarter of 2022, compared to 1.04 trillion naira previously recorded in the corresponding period of 2021.
Based on account types, current deposit accounted for the highest share of 55.29% or 669 billion naira, while term deposits and savings deposits amounted to 227 billion naira respectively. and N208 billion in the first quarter of 2022.

Stanbic IBTC

Stanbic IBTC customer deposits stood at 1.2 trillion naira in the first quarter of 2022, a growth of 38.42% compared to the 867 billion naira recorded in the corresponding quarter of 2021.
By account type, current deposits accounted for 50.08%, savings deposits 12.75% and term deposits 22.50% of total customer deposits during the period, amounting respectively to 601 billion naira, 153 billion naira and 270 billion naira.

Wema Bank

Wema Bank reported an increase in customer deposits of 26.88% to N1.01 trillion in the first three months of 2022 from N796 billion in the first three months of 2021.
The financial services provider recorded the most deposits from term deposits, which accounted for 53.66% of total customer deposits during the period under review. Its term deposits for the first quarter stood at 542 billion naira, while savings deposits stood at 146 billion naira and current deposits at 256 billion naira.

Unit bank

Unity Bank reported customer deposits of N379 billion in the first quarter of 2022, an increase of 8.91% from the N348 billion recorded in the corresponding period of 2021.
Its current deposits accounted for the most at 39.31%, amounting to N149 billion during the period under review. Savings deposits and term deposits during the period amounted to N87 billion and N98 billion respectively.

Jaiz Bank

Jaiz Bank recorded customer deposits of N114 billion in the first quarter of 2022, with current deposits accounting for 100%. The amount recorded is a huge increase of 31.03% from N87 billion in the first quarter of 2021.

Comments are closed.