Reported by: Thecableng
Nigeria’s banking industry is an oligopoly and that position has been reinforced since the regulatory-induced industry consolidation exercise in 2007. Five banks account for 64% of the over N25 trillion total assets of deposit money banks at the end of 2015. The top five banks also account for about 70% of the total assets of the top 10 largest banks. With pressure on liabilities coming from the government’s treasury single account policy, most of the banks suffered declines on the asset side of the balance sheet in 2015.
FBN Holdings held the leadership of the banking industry by the size of the balance sheet in 2015 with an asset base of N4.17 trillion. This is however a decline of 4.1% from the peak figure it attained in the preceding year. The bank has held the position of the largest bank in Nigeria so far but its leadership gap has narrowed considerably. Another decline in asset base in the current year could end the bank’s over a century old status as Nigeria’s largest bank.
Zenith Bank is the second largest bank in Nigeria with an asset base of N4.0 trillion at the end of 2015. It has maintained a rapid growth over the years and has narrowed the gap with FBN Holdings over the past two years. It achieved a faster growth rate in the preceding year and again grew by 6.7% in 2015. If the trend is maintained in the current year,
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