The 2018 top banks in Nigeria by profits

Profit Before Taxation combines all of the company’s profits before tax, including operating, non-operating, continuing operations and non-continuing operations. In this educational article, we list the 2018 top banks in Nigeria by profits.

PBT exists because tax expense is constantly changing and taking it out helps give an investor a good idea of changes in a company’s profits or earnings from year to year. Profit Before Taxation (PBT) is the money retained by the firm before deducting the money to be paid for taxes. It is a profitability measure that looks at a company’s profits before the company has to pay income tax. This measure deducts all expenses from revenue including interest expenses and operating expenses, but it leaves out the payment of tax.

Profit before tax provides useful information for evaluating a company’s operating performance without regard to tax implications. By removing the tax factor, profit before tax helps to minimize a variable that may be unique from bank to bank, in order to focus the analysis on operating profitability as a singular measure of performance. Such analysis is particularly important when comparing similar banks across the industry.

The 2018 top banks in Nigeria by profits

Guaranty Trust Bank PLC (#154,005,487,000 (2016), #186,204,604,000 (2017)), Zenith Bank PLC (#139,927,000,000 (2016), #173,563,000,000 (2017)), and Access Bank PLC (#80,579,576,000 (2016), #67,043,501,000 (2017)) are the highest profit before taxation in the year 2016 and 2017.

Suntrust Bank Nigeria Limited (#343,344,000 (2016), #285,144,000 (2017)), Wema Bank PLC (#3,276,365,000 (2016), #3,054,873,000 (2017)), and Diamond Bank PLC (#1,903,406,000 (2016), #4,352,136,000 (2017) ) are the lowest profit before taxation in the year 2016 and 2017.