Nigeria’s Top 10 Banks: Capital Giants Unveiled

After the CBN governor dropped hints about an upcoming recapitalization exercise for Nigerian banks, discussions have intensified regarding the capitalization levels of these financial institutions. According to information accessed by Nairametrics, Nigerian banks currently boast a combined capital base exceeding N11 trillion. This has led experts to question the necessity of further recapitalization.

The existing capital base requirements, as stipulated by the CBN, are set at N25 billion for a national banking license, N10 billion for a regional banking license, and N50 billion for an international commercial banking license. However, the last comprehensive recapitalization took place in 2004-2005, almost two decades ago.

Here is a rundown of the largest banks in Nigeria, ranked based on their capital bases as of September 2023:

**10. FCMB – N345 billion**
FCMB Group Plc

As of June 2023, FCMB holds the tenth spot with a capital base of N344.56 billion. Its capital adequacy ratio (CAR) stood at 16.0% as of December 31, 2022, slightly above the CBN’s mandated 15%.

**9. Titan Trust Bank – N346 billion**
Titan Trust Bank

Newcomer Titan Trust Bank secures the ninth position, edging ahead of FCMB due to its 100% acquisition of Union Bank of Nigeria. Post-acquisition, Titan Trust Bank’s capital base surged to N346 billion, based on Union Bank’s Q1 2023 financial results.

**8. Fidelity Bank – N411 billion**
Fidelity Bank

With a capital base of N410.75 billion as of September 2023, Fidelity Bank finds itself in a comfortable position, particularly after venturing into international banking by acquiring the UK division of Union Bank of Nigeria.

**7. Stanbic IBTC Holdings – N471 billion**
Stanbic IBTC Holdings Plc

The Nigerian subsidiary of Standard Bank Group, Stanbic IBTC Holdings, boasts a capital base of N471 billion as of September 2023.

**6. GTCO Holdings – N1.27 trillion**
GT Bank

GTCO Holdings, the parent group of GTBank, exhibits a total equity of N1.273 trillion, marking a 36.7% increase from the N931 billion recorded at the beginning of 2023. While the group’s total equity is N1.27 billion, its Nigerian subsidiary, GT Bank Nigeria, holds a capital base of N1 trillion as of September 2023.

**5. Ecobank – N1.33 trillion**
Ecobank

Ecobank Transnational Incorporated, traded on the NGX, boasts a total capital base of N1.33 trillion as of June 2023, considering its multinational operations.

**4. FBNH – N1.37 trillion**
FirstBank

As of September 2023, FBNH, the parent company of First Bank Limited, reports a total equity of N1.37 trillion. However, its commercial banking arm, First Bank Limited, maintains a capital base of N1.287 trillion.

**3. Access Holdings – N1.64 trillion**
Access Holdings

With a total equity of N1.64 trillion, Access Holdings stands as Nigeria’s third-largest bank in terms of capital base. Its Nigerian subsidiary, Access Bank Nigeria, holds a stable equity of N1.208 trillion as of September 2023.

**2. UBA – N1.78 trillion**
UBA

United Bank for Africa, the second-highest profit generator in Nigeria for the year, is also the second most capitalized bank as of September 2023. With a total equity of N1.78 trillion, the bank maintains a robust capital adequacy ratio of 28.3%.

**1. Zenith Bank – N1.92 trillion**
Zenith Bank

Zenith Bank secures the top spot as Nigeria’s most capitalized bank, boasting a capital base of approximately N1.92 trillion as of September 2023. The bank also leads in terms of profits, with a pre-tax profit of N505 billion. With a CAR of 20.1%, the bank’s stability remains unquestionable.

**What you should know:**
Information available to Nairametrics suggests that a potential recapitalization exercise could pose a threat to smaller banks, potentially leading to their closure. Banks such as Jaiz Bank, with a capital base of N28 billion, and Wema Bank, facing the risk of downgrading to a regional bank, may need to consider mergers or capital raises to secure their positions.

Aside from the capital base, another crucial metric for assessing a bank’s financial health is its regulatory capital adequacy ratio.