The Nigerian banking sector has experienced a significant boost in customer deposits, reflecting renewed confidence in the industry during the first quarter of 2024. Reports from various commercial banks reveal that total customer deposits increased by N21 trillion, bringing the total to N136 trillion.
Zenith Bank and UBA Lead the Charge
Zenith Bank and United Bank for Africa (UBA) have emerged as leaders in this upward trend. Zenith Bank’s deposits rose by 69%, from N8.98 trillion in 2022 to N15.17 trillion in 2023, closing at N16.78 trillion in March 2024. Similarly, UBA saw its deposits increase from N10.86 trillion in 2022 to N14.9 trillion in 2023, reaching N18.4 trillion by the end of the first quarter of 2024.
Guaranty Trust Holding Company (GTCO) also reported significant growth, with deposits doubling from N4.6 trillion in 2022 to N7.55 trillion in 2023, and further rising to N9.2 trillion in the first quarter of 2024.
Mid-Tier and New Banks Show Impressive Growth
Mid-tier banks and new entrants have not been left behind. FCMB saw a steady increase in deposits from N2.07 trillion in 2022 to N3.4 trillion in 2023, and N3.7 trillion in the first quarter of 2024. Premium Trust Bank, a new player in the market, experienced a remarkable 382% increase in deposits, from N55 billion in December 2022 to N265 billion in December 2023, closing the first quarter of 2024 at N309 billion.
Fidelity Bank and Access Holdings Join the Surge
Fidelity Bank’s customer deposits surged from N258 trillion in 2022 to N4.02 trillion in 2023, reaching N4.71 trillion in the first quarter of 2024. Access Holdings saw its deposits jump from N11.3 trillion in 2022 to N19.8 trillion in 2023, closing at N24.7 trillion by March 2024.
Sterling Holding Financial Company also saw an impressive rise, exceeding the N2 trillion mark with deposits growing to N2.15 trillion in the first quarter of 2024 from N1.4 trillion in 2022 and N1.8 trillion in 2023.
The increase in customer deposits has enabled banks to expand lending to the private sector, particularly small and medium-sized enterprises (SMEs), thus supporting the growth of the Nigerian economy.
Foreign Exchange Turnover and Naira Performance
Despite these positive developments, the Nigerian naira depreciated by 6.43% in July, trading at N1,608.73 per dollar. Data from the FMDQ Exchange showed the naira fluctuated between N1,500.32 and N1,612.12 during the period, surpassing the N1,600 threshold. The Central Bank of Nigeria (CBN) continues efforts to stabilize the currency and improve market liquidity through foreign exchange sales.
