Nigerian Banks See 51% Surge in Customer Deposits to N140.97 Trillion in 2024 Amid Economic Challenges
In 2024, Nigerian banks achieved a remarkable 51% growth in customer deposits, reaching N140.97 trillion, compared to N93.5 trillion in 2023. This surge reflects growing public trust in the formal banking system amidst the challenges of high inflation and the devaluation of the naira. Despite fierce competition from fintech companies operating in Nigeria and other sub-Saharan African nations, the country’s traditional banks have maintained strong customer deposit growth.
Among the 10 Deposit Money Banks (DMBs) listed on the Nigerian Exchange Limited (NGX), Ecobank Transnational Incorporated (ETI) led the pack with N31.64 trillion in customer deposits, marking a 66.4% increase from N19.01 trillion in 2023. Access Holdings and Zenith Bank followed with N22.52 trillion and N21.96 trillion in deposits, respectively, both showing significant growth over the previous year. These three banks have benefited from their expansive operations across the African continent.
United Bank for Africa (UBA) also saw substantial growth, with customer deposits rising to N21.89 trillion in 2024, an increase of 47% from N14.89 trillion in 2023. Other notable performers included First Holdco, which grew its deposits by 61% to N17.17 trillion, and Guaranty Trust Holding Company (GTCO), which posted a 35% increase, reaching N10.01 trillion. The overall increase in deposits indicates strong public confidence in the banking sector, even amidst high inflation rates and currency challenges.
The rise in customer deposits is crucial for banks, as these funds serve as a primary source for issuing loans and making investments. As the Central Bank of Nigeria (CBN) raised the Monetary Policy Rate (MPR), the interest on demand deposits also grew, with the average interest rate reaching 13.57% by December 2024, up from 9.75% in the previous year. This trend underlines the resilience of Nigerian banks, even as they face competition from fintech and an evolving financial landscape.
Source: Arise