Six banks have reported a remarkable profit surge of over N2.4 trillion in the first nine months of the year, a 20% increase from the previous year. This impressive growth is attributed to a significant surge in customer deposits, which have risen by an astonishing amount compared to the end of the 2024 financial year. The banks in question are First HoldCo Plc, Access Holdings Plc, Zenith Bank Plc, United Bank for Africa Plc, Sterling Financial Holdings, and Wema Bank Plc. Their profit before tax for the nine-month period ended September soared to N2.895 trillion, a 2% increase from the previous year. This surge in profits has sparked discussions among financial experts and industry analysts, who are urging banks to translate these earnings into increased dividends for shareholders and improved services for customers. However, there are concerns about the sustainability of these profits, as some banks' earnings are reportedly driven by short-term factors. The Director of the Institute of Capital Market Studies, Uche Uwaleke, emphasizes the need for banks to demonstrate the solidity of their earnings and ensure that customers benefit from their growth through better service and clearer communication. Okechukwu Unegbu, a former President of the Chartered Institute of Bankers of Nigeria, highlights the importance of translating profits into higher dividends for shareholders. He also attributes the growth in customer deposits to a renewed saving culture among citizens. Meanwhile, customer satisfaction and service improvements are being called for by Zenith Bank customer, Augustin Ode, who urges banks to prioritize their customer service departments. The article concludes by highlighting the importance of banks' recapitalization for Nigeria's economic goals, as stated by the Central Bank of Nigeria (CBN).
