The Nigerian Stock Exchange (NGX) has witnessed a remarkable performance in 2023, as the All-Share Index (ASI) has crossed the 70,000 mark for the first time in history. The ASI, which measures the market value of all listed equities, closed at 70,613.6 points on Tuesday, November 8, 2023, representing a 37.78% year-to-date increase.
The impressive performance of the NGX has been driven by the strong earnings of some of the listed companies, especially in the banking, consumer goods, and telecommunications sectors. These companies have recorded significant growth in their revenues and profits, despite the challenges posed by the high inflation rate, the naira devaluation, and the COVID-19 pandemic.
Newsflash Nigeria has compiled a list of the top 10 most profitable companies in Nigeria as of the third quarter of 2023, based on their latest financial reports. The list ranks the companies by their pre-tax profits, which reflect their operating efficiency and profitability before tax obligations.
Here are the top 10 most profitable companies in Nigeria as of Q3 2023:
- BUA Foods (Consumer goods)
BUA Foods, a subsidiary of BUA Group, is one of the leading producers and distributors of food and beverage products in Nigeria. The company’s products include pasta, noodles, biscuits, sugar, vegetable oil, rice, flour, and dairy products.
BUA Foods recorded a pre-tax profit of N111.4 billion in the first nine months of 2023, representing a 50% year-on-year increase from the same period in 2022. The company also recorded a profit after tax of N105.6 billion, up by 53.6% year-on-year.
The company’s revenue for the period was N1.1 trillion, up by 36.4% year-on-year. The revenue was driven by the growth in sales of its pasta, noodles, biscuits, and sugar segments, which accounted for 86.5% of the total revenue.
- Stanbic IBTC Holdings (Banking)
Stanbic IBTC Holdings is a financial services group that offers banking, pension, wealth management, stockbroking, and insurance services in Nigeria. The group is a subsidiary of Standard Bank Group, a leading African financial institution.
Stanbic IBTC Holdings recorded a pre-tax profit of N129.5 billion in the first nine months of 2023, representing an 87.8% year-on-year increase from the same period in 2022. The group also recorded a profit after tax of N109.2 billion, up by 98% year-on-year.
The group’s revenue for the period was N263.7 billion, up by 32.6% year-on-year. The revenue was driven by the growth in net interest income, non-interest revenue, and trading income, which accounted for 93.7% of the total revenue.
- Ecobank Transnational Incorporated (Banking)
Ecobank Transnational Incorporated (ETI) is a pan-African banking group that operates in 33 countries across the continent. The group offers retail, corporate, investment, and digital banking services to its customers.
ETI recorded a pre-tax profit of N150.2 billion in the first half of 2023, representing a 23.4% year-on-year increase from the same period in 2022. The group also recorded a profit after tax of N102.3 billion, up by 23.6% year-on-year.
The group’s revenue for the period was N442.9 billion, up by 13.2% year-on-year. The revenue was driven by the growth in net interest income, fees and commissions, and foreign exchange income, which accounted for 94.4% of the total revenue.
- MTN Nigeria (Telecommunications)
MTN Nigeria is the leading telecommunications operator in Nigeria, with over 70 million subscribers and 36.9% market share. The company offers voice, data, mobile money, and digital services to its customers.
MTN Nigeria recorded a pre-tax profit of N232.5 billion in the first nine months of 2023, representing a 42% year-on-year decline from the same period in 2022. The company also recorded a profit after tax of N147.4 billion, down by 45.2% year-on-year.
The company’s revenue for the period was N1.77 trillion, up by 21.8% year-on-year. The revenue was driven by the growth in data, voice, and fintech revenue, which accounted for 96.4% of the total revenue.
The company’s profit decline was mainly due to the high finance costs, which soared by 173.4% year-on-year to N397.1 billion, as a result of the naira devaluation and the increased borrowings.
- FBN Holdings (Banking)
FBN Holdings is a financial services group that comprises First Bank of Nigeria, FBNQuest, and FBN Insurance. The group offers banking, investment banking, asset management, insurance, and pension services in Nigeria and other countries.
FBN Holdings recorded a pre-tax profit of N270.3 billion in the first nine months of 2023, representing a 156.3% year-on-year increase from the same period in 2022. The group also recorded a profit after tax of N236.5 billion, up by 159.1% year-on-year.
The group’s revenue for the period was N581.8 billion, up by 41.9% year-on-year. The revenue was driven by the growth in net interest income, non-interest income, and insurance premium income, which accounted for 97.4% of the total revenue.
- Access Holdings (Banking)
Access Holdings is a financial services group that offers banking, investment banking, asset management, and insurance services in Nigeria and other countries. The group is the result of the merger between Access Bank and Diamond Bank in 2019.
Access Holdings recorded a pre-tax profit of N294.4 billion in the first nine months of 2023, representing a 100.2% year-on-year increase from the same period in 2022. The group also recorded a profit after tax of N250.4 billion, up by 83% year-on-year.
The group’s revenue for the period was N671.9 billion, up by 32.7% year-on-year. The revenue was driven by the growth in net interest income, non-interest income, and trading income, which accounted for 95.8% of the total revenue.
- Dangote Cement (Industrial goods)
Dangote Cement is the largest cement producer in Africa, with operations in 10 countries and a total installed capacity of 48.6 million tonnes per annum. The company is a subsidiary of Dangote Group, a diversified conglomerate owned by Aliko Dangote, Africa’s richest man.
Dangote Cement recorded a pre-tax profit of N404.9 billion in the first nine months of 2023, representing a 37.4% year-on-year increase from the same period in 2022. The company also recorded a profit after tax of N277.5 billion, up by 30.2% year-on-year.
The company’s revenue for the period was N1.5 trillion, up by 20.5% year-on-year. The revenue was driven by the growth in sales volume and price across its Nigerian and Pan-African operations, which accounted for 99.9% of the total revenue.
- GTCO Holding (Banking)
GTCO Holding is a financial services group that offers banking, investment banking, asset management, and pension services in Nigeria and other countries. The group was formerly known as Guaranty Trust Holding Company, following the restructuring of Guaranty Trust Bank into a holding company in 2021.
GTCO Holding recorded a pre-tax profit of N433.2 billion in the first nine months of 2023, representing a 155.2% year-on-year increase from the same period in 2022. The group also recorded a profit after tax of N367.4 billion, up by 181.9% year-on-year.
The group’s revenue for the period was N616.3 billion, up by 49.4% year-on-year. The revenue was driven by the growth in net interest income, non-interest income, and trading income, which accounted for 95.6% of the total revenue.
- United Bank for Africa (Banking)
United Bank for Africa (UBA) is a pan-African banking group that operates in 20 African countries and three global financial centers. The group offers retail, corporate, investment, and digital banking services to its customers.
UBA recorded a pre-tax profit of N502.1 billion in the first nine months of 2023, representing a 262.5% year-on-year increase from the same period in 2022. The bank also recorded a profit after tax of N449.3 billion, up by 287.2% year-on-year.
UBA’s revenue for the period was N1.1 trillion, up by 50.9% year-on-year. The revenue was driven by the growth in net interest income, non-interest income, and trading income, which accounted for 96.9% of the total revenue.
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.
- 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
Fidelity Bank Plc with a pre-tax profit of N111 billion in 9M 2023
Seplat Energy Plc with a pre-tax profit of N62.9 billion in 9M 2023
Lafarge Africa Plc with a pre-tax profit of N61.2 billion in 9M 2023
FCMB Plc with a pre-tax of N38.2 billion in H1 2023
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.
