9M 2023: Highest profit-generating companies in Nigeria so far (original) (raw)

On the back of ever-rising interest rates in Nigeria, banks have risen to the occasion to become some of the most profitable entities in Nigeria in 2023.

As of the nine months ending September 30, 2023, Zenith Bank, UBA, and GTCO Holdings made the list of the most profitable companies in the country, while non-banking companies like Dangote Cement also made the list on the back of improved revenue.

Stocks in the NGX are currently experiencing one of the best trading years yet as the All-Share Index has crossed the 70,000 mark for the first time.

However, companies have also suffered significant foreign exchange losses after the Naira devaluation in June 2023, forcing companies like Airtel Africa to report losses.

Nairametrics highlights companies with the highest profits in Nigeria so far, analyzing the recent nine-month financial reports of companies listed on the NGX.

  1. BUA Foods (Consumer goods)

BUA Foods ranks tenth on the list of companies with the highest profits so far in 2023, as the group recorded a nine-month pre-tax profit of N111.4 billion, representing a year-on-year growth of 50% from the corresponding period last year.

The group also recorded a nine-month profit after tax of N105.6 billion, up by 53.6% year-on-year from the same period last year.

Despite ranking as one of the most valuable companies in the country, BUA Foods’ profit level is far behind many of the banking institutions in the country.

  1. Stanbic IBTC (Banking)

In 2022, Stanbic IBTC Holdings recorded a pre-tax profit of N100.3 billion. However, within the first nine months of 2023 alone, the group has recorded a profit before tax of N129.5 billion, representing a year-on-year increase of 87.8% from the corresponding period in 2022.

The group also recorded a profit after tax of N109.2 billion during the nine months, representing a year-on-year increase of 98% from the corresponding period in 2022.

  1. Ecobank Transnational Incorporated (Banking)

Currently, the group has only unveiled its financial results for the first half of 2023, revealing a pre-tax profit of N150.2 billion. This positions the company as one of the top performers on the NGX this year.

However, Ecobank Nigeria Limited in H1 2023 reported a $29 million profit before tax, while the bulk of the group’s profit came from its UEMOA (West African Economic and Monetary Union) division.

  1. MTN Nigeria (Telecommunications)

From being the most profitable company in Nigeria in 2022, MTN Nigeria has suffered a decline in its pre-tax profit in the nine months ending September 2023. The group recorded a nine-month pre-tax profit of N232.5 billion, representing a 42% year-on-year decline from the corresponding period in 2022.

The group’s nine-month profit after tax was N147.4 billion, representing a 45.2% year-on-year decline from the corresponding period last year. Despite reporting a nine-month revenue of N1.77 trillion, marking a 21.8% year-on-year revenue growth, the company’s finance costs during the period soared by 173.4% year-on-year to N397.1 billion.

  1. FBN Holdings (Banking)

The group’s nine-month profit before tax of N270.3 billion in 2023 represented a 156.3% year-on-year appreciation from the corresponding period in 2022. The group also recorded a profit after tax of N236.5 billion, marking a 159.1% year-on-year increase from the same period last year.

  1. Access Holdings (Banking)

Access Holdings ranked fifth on the list of Nigerian companies with the highest profits as of September 2023 with a nine-month pre-tax profit of N294.4 billion, representing a year-on-year increase of 100.2% from the corresponding period last year.

The group’s profit after tax of N250.4 billion during the nine-month period was also an 83% year-on-year increase from the same period in 2022.

  1. Dangote Cement (Industrial goods)

With nine months’ profit before tax of N404.9 billion in 2023, Dangote Cement Plc ranks fourth on the list of companies with the highest profits so far. The group’s nine months profit after tax of N277.5 billion represents a 30.2% year-on-year increase from the corresponding period in 2022.

The group reported a revenue of N1.5 trillion during the nine months, marking a 20.5% year-on-year growth from the corresponding period in 2022.

  1. GTCO Holding (Banking)

GTCO Holding, the parent group of GT Bank recorded a nine-month profit before tax of N433.2 billion, representing a year-on-year increase of 155.2% from the same period in 2022. The group also recorded a profit after tax of N367.4 billion during the nine-month period, representing a year-on-year increase of 181.9% from the corresponding period last year.

The group recorded a net interest income of N297.5 billion during the nine months, representing a year-on-year increase of 56.9% from last year’s figure.

  1. United Bank for Africa (Banking)

During the nine months ending September 2023, UBA recorded a profit before tax of N502.1 billion, marking a year-on-year increase of 262.5% from the corresponding period last year. The bank also recorded a profit after tax of N449.3 billion during the nine months, marking a year-on-year surge of 287.2% from the corresponding period last year.

UBA has been one of the major beneficiaries of rising interest rates in Nigeria, as it has led to rising interest income for the bank.

  1. Zenith Bank (Banking)

Coming in as the highest profit-generating company in Nigeria so far is Zenith Bank Plc. With a pre-tax profit of N505 billion in the nine months ending September 2023, the company has recorded a significant surge from the N202.5 billion reported during the corresponding period last year.

In only nine months, the group has already surpassed its 2022 earnings. For instance, in 2022, Zenith Bank made N284.7 billion profit before tax, but in the first nine months of 2023, the group’s profit after tax already reached N434.2 billion.

Other Notable Mentions

What you should know

Among the ten highest profit-generating companies in Nigeria so far, seven are banks, which is a pointer to the increased interest income banks are generating due to rising borrowing interest rates. This trend has led to amplified interest earnings for banks while concurrently driving up financial costs for non-banking entities.