Banking sector records high profit too
Banking sector dominates revenue; profit size further breakdown showed that the banking sector led in absolute figures delivering N1.002 trillion revenue in the quarter compared to N753.43 billion in the corresponding period in 2016, but indicating 33 per cent growth.
This is also showing about 58 per cent of the total revenue of all the companies. The oil and gas sector followed far behind with N297.4 billion revenue compared to N159.7 billion, while the consumer goods sector came third with turnover of N225.63 billion as against N124.14 billion in Q1’16.
On profitability of the businesses during the period, the industrial goods sector came top in percentage growth.
The sector recorded N12.62 billion in pre-tax profit, representing 276 per cent increase against N3.36 billion recorded in Q1’16. The agriculture sector came second with N4.16 billion PBT, up 98 per cent against N2.1 billion in Q1’16, while the banking sector came third with percentage increase of 32.2% in PBT to N227.40 billion from N172.04 billion. All three sectors that led profitability beat both the inflation and GDP numbers.
Again, the banking sector topped others in absolute terms as it recorded N227.4 billion PBT. Again this represents a predominant sector performance controlling over 84 per cent of the total PBT posted by all the companies.
The banking sector PBT was trailed distantly by the consumer goods sector with N19.33 billion and the industrial goods sector that achieved N12.62 billion in PBT.
Banking sector leaders Measured in percentage term, Zenith Bank Plc led in revenue in the sector, recording 49 per cent growth to N147.74 billion, thus accounting for 15 per cent and 8.4 per cent of the banking sector revenue and overall turnover of the 62 companies respectively.
UBA followed with 40 per cent revenue growth to N101.3 billion, accounting for 10.1 per cent and six per cent of the sector’s and overall turnover respectively. GT Bank placed third with 39 per cent increase to N104.7 billion, representing 10.5 per cent and six per cent of the sector’s and overall turnover respectively. Jaiz Bank Plc led in terms percentage growth in profit before tax during the period.
The bank’s pre-tax profit rose by 175 per cent to N203.68 million. It was followed by Stanbic IBTC Holdings Plc with 78 per cent PBT growth to N18.6 billion.
Again GT Bank came third, recording 64 per cent increase to N50.4 billion in Q1’17. Insurance sector improved with mixed results However, the insurance sector sustained its lack-luster performance into the fourth year though it made some upshot beginning the year in Q1’17 with 16.5 per cent revenue growth.
Specifically, the 12 insurers that have so far released their earnings reports recorded combined N44.01 billion revenue in Q1’17 as against N37.78 billion in Q1’16, thereby underperforming inflation, but above GDP figure. The sector’s turnover also showed about 25.3 per cent contribution to the overall companies’ turnover. But the PBT ended in the negative region as the sector pooled N3.86 billion in pre-tax profit compared to N4.2 billion, indicating 10.6 per cent decline.
While the sector underperformed inflation and GDP on both fronts, it accounted for mere 1.4 per cent of the overall PBT. Nevertheless, the sector saw a mixed performance by most of the insurers as some of them had massive decline in either revenue or PBT while Cornerstone Insurance, a key player in the sector, recorded outright loss before tax, with the figure deepening by huge 95.4 per cent.
Prestige assurance led in revenue growth rate, recording 68.8 per cent increase while Regency Alliance Insurance came second with 53 per cent revenue growth, followed by Axa Mansard Insurance with 47.8 per cent increase.
Analysis of pre-tax profit in the sector showed that Sovereign Trust topped others in growth rate with huge 1,007 per cent increase, followed by Unity Kapital Assurance, which recorded PBT growth of 399.7 per cent, while Wapic Insurance ranked third with 135.1 per cent growth