The latest audited reports from Nigerian Stock Exchange-listed banks reveal that Access Bank, UBA, and Zenith Bank incurred the highest expenses from the Asset Management Corporation of Nigeria (AMCON) in 2022.
These findings shed light on the financial performance and liabilities of the top banks.
According to findings, the ten banks incurred N227.3 billion in banking sector resolution costs to AMCON in 2022, compared to 2021 N192.14 billion, representing an increase of 18.3 percent year over year.
The increase, it was gathered, was due to a 23.7 percent increase in the total assets of the banks, increasing from N49.1 trillion as of December 2021 to N60.7 trillion as at the end of 2022.
Access Bank incurred N52.73 billion on AMCON expenses in 2022, representing a 27 percent increase when compared to N41.51 trillion recorded in the previous year.
This is following the significant increase in the asset value of the newly restructured bank, which grew on the back of multiple mergers and acquisitions.
As of December 2022, Access Bank recorded a total asset value of N14.99 trillion, which is 27.8 percent higher than the N11.73 trillion recorded in the same period of the prior year.
Zenith Bank recorded N44.01 billion as sector resolution cost for the year ended 2022, 16.1 percent higher than the N37.92 billion incurred in the previous year. Zenith Bank, which is also the second-largest bank by asset value and the most capitalized bank in the equities market, saw its total asset grow by 30 percent.
The total assets of Zenith Bank increased from N9.45 trillion recorded as of the end of December 2021 to N12.29 trillion in 2022, owing to an increase in loans and advances to customers, which had increased by 19.6 percent year-on-year to N4.01 trillion in the same period.
United Bank for Africa incurred N31.59 billion on AMCON fees in 2022, surpassing the N27.98 billion recorded in the previous year by 12.9 percent. UBA accounted for 13.9 percent of the total AMCON expenses by the ten banks.
Similarly, the total assets of the Pan-African Bank increased by 27.1 percent from N8.54 trillion as of the end of 2021 to N10.86 trillion as of December 2022.
GT Bank incurred N23.29 billion, representing a +6.4 percent year-on-year increase, and Fidelity Bank paid N18.29 billion, representing +19.1 percent year-on-year.
Stanbic IBTC recorded N14.6 billion, representing +13 percent year-on-year, while Union Bank, FCMB, and Sterling Bank recorded N14.33 billion representing 24.9 percent year-on-year, N12.84 billion, representing 21.9 percent year-on-year and N9.17 billion, representing +25.9 percent year-on-year respectively.
Wema Bank recorded the lowest of N6.47 billion, representing +22.3 percent year-on-year.
Initially, banks were required to pay 0.3 percent of all assets into the sinking fund. In 2013 it was raised to 0.5 percent of total assets (and 0.3 percent of contingent liabilities).