Top 10 largest banks in Nigeria based on their shareholder funds as of September 2023

According to data available to Nairametrics, Nigerian banks currently boast a substantial capital base, exceeding N11 trillion.

This significant figure has prompted experts to question the necessity for further recapitalization in the banking sector.

A recent report from the central bank indicates plans are underway to increase the capital base of Nigerian banks ahead of the $1 trillion GDP target for the economy.

Presently, the capital base requirements set by the CBN stand at N25 billion for obtaining a national banking license, N10 billion for a regional banking license, and N50 billion for an international commercial banking license. It's worth noting that the last recapitalization exercise took place nearly two decades ago, specifically in 2004-2005.

Here, we present a ranking of the largest banks in Nigeria based on their capital bases. This ranking provides insights into the total equity held by these banks as of September 2023.

10. Titan Trust Bank - N346 billion

The new bank, Titan Trust Bank comes in at number 9, slightly ahead of FCMB due to its 100% acquisition of Union Bank of Nigeria. Before it acquired Union Bank, the bank had a capital base of N36.4 billion in 2021 which was sufficient for a national banking license.

However, with the acquisition of Union Bank, its capital base has jumped to N346 billion based on Union Bank's Q1 2023 financial results.

9. FCMB - N373.7 billion

With a capital base of N373.7 billion as of September 2023, FCMB ranks as the 9th most capitalized bank in Nigeria. With a capital adequacy ratio of 16.0% as of December 31, 2022, FCMB's CAR was just a little above the regulatory 15% required by the CBN.

8. Fidelity Bank - N411 billion

With a capital base of N410.75 billion as of September 2023, Fidelity Bank sits in quite a comfortable place ahead of any recapitalization exercise for Nigerian banks.

In September 2023, the bank made a foray into international banking by acquiring the UK division of Union Bank of Nigeria.

7. Stanbic IBTC Holdings - N471 billion

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

6. GTCO Holdings - N1.27 trillion

GTCO Holdings, the parent group of GTBank has a total equity of N1.273 trillion, a year-to-date increase of 36.7% from the N931 billion recorded at the start of 2023.

While GTCO's total equity is put at N1.27 billion, this is cumulative of all the group's subsidiaries. However, its Nigerian subsidiary, GT Bank Nigeria holds a total capital base of N1 trillion as of September 2023 which is still a substantial figure ahead of any recapitalisation exercise.

5. Ecobank - N1.33 trillion

Ecobank ranks ahead of GTCO because of its multinational operations. Ecobank Transnational Incorporated traded on the NGX has its total capital base at N1.33 trillion as of June 2023, however, just like GTCO, this is a cumulative of the group's total equity.

4. FBNH - N1.37 trillion

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

3. Access Holdings - N1.64 trillion

With a total equity of N1.64 trillion, Access Holdings ranks as Nigeria's third-largest bank concerning its capital base. Its Nigerian subsidiary, Access Bank Nigeria has a total equity of N1.208 trillion as of September 2023, which is a stable figure in case of any recapitalization exercise.

2. UBA - N1.78 trillion

United Bank for Africa, Nigeria's second-highest profit generator this year is also the second most capitalized bank as of September 2023. The bank posted a total equity of N1.78 trillion as of Q3 2023, and as of the end of FY 2022, the bank's capital adequacy ratio was 28.3%, suggesting stable financial health.

1. Zenith Bank - N1.92 trillion

Zenith Bank is Nigeria's most capitalized bank, with a capital base of about N1.92 trillion as of September 2023. The bank also ranks as Nigeria's highest profit generator so far in 2023, with a pre-tax profit of N505 billion.

With a CAR of 20.1% as of September 2023, as against 19.8% as of December 2022, the bank's stability is not in question.

What you should know
According to information available to Nairametrics, a possible recapitalization exercise puts smaller banks at risk of winding up.

Some of these banks include Jaiz Bank which has a capital base of N28 billion, while Wema Bank faces a threat of being downgraded to a regional bank except it merges with another bank or raises capital.

Apart from their capital base, another measure for assessing the financial health of a bank is its regulatory capital adequacy ratio.