Leading the increase in deposits is Zenith Bank

In the year leading up to September 2022, client deposits grew the fastest at Zenith Bank Plc, Access Bank Plc, and Wema Bank Plc.

The 10 banks increased their total client deposits to N41.9 trillion as of September 2022, up 22% from N34.3 trillion in the same month in the previous year, according to a study of their financial filings.

“The growth in economic activity that year led to a 19.0 per cent increase in the overall deposit base, which reached N51.8 trillion in 2021.

Tier-1 players once more assumed control, providing 64.1% of deposits, “Afrinvest (West Africa) Limited’s deputy group managing director, Victor Ndukauba, made this statement last month during the presentation of the company’s report on the banking industry for 2022.

With a 33 per cent increase in client deposits from N6.04 trillion to N8.04 trillion in September 2022, Zenith Bank stood out from the competition.

As of September, Access Bank’s client deposits totalled N8.19 trillion, up 31.4 per cent from N6.23 trillion a year earlier.

While First Bank’s client deposits jumped by 21.7 per cent to N6.6 trillion in September, Wema reported a 22.8 per cent growth to N1.08 trillion.

In September, client deposits at Union Bank of Nigeria Plc surged by 19.5 per cent to N1.53 trillion, while those at Fidelity Bank Plc jumped by 16.2 per cent to N2.29 trillion.

In September, United Bank of Africa Plc increased its client deposits to N7.03 trillion, up 15.6 per cent from the same month last year.

Customers’ deposits at Guaranty Trust Holding Company Plc, Sterling Bank Plc, and Stanbic IBTC Holdings Plc increased by 12.6%, 8%, and 7%, respectively, to N4.26 trillion, N1.2 trillion, and N1.61 trillion.

According to analysts, the Central Bank of Nigeria’s plans to redesign, print, and distribute new series of banknotes at the N100, N200, N500, and N1,000 denominations starting on December 15, 2022, could result in a considerable increase in deposits at deposit money banks (DMBs). On January 31, 2023, the current notes will no longer be accepted as legal money.

As depositors wait for the deployment of the redesigned notes, “with the expected redesign of the naira notes comes the influx of cheap deposits into the banking system, invariably leaving more liquidity in the hands of banks to deploy in the relatively higher yield fixed-income market,” said Ayodeji Ajilore, an investment research analyst with ARM Securities.

The CBN governor, Godwin Emefiele, stated during a news conference in Abuja that the redesign of the naira was intended to address public money hoarding, decrease counterfeiting, increase the availability of clean notes, and end currency mutilation.