Gross earnings are income before taxes or adjustments, it is calculated as revenues minus expenses. Bank’s gross earnings is one measure among many of how well it uses its resources to produce a profit. In this educational article, we list the 2018 top banks in Nigeria by earnings.
A company’s gross earnings are reported periodically on its income statement. The first line of the income statement reports a company’s total sales and revenues for a given time period, while the COGS and gross earnings often appear on the second and third lines of many income statements. The difference between revenue and the COGS is a company’s gross earnings. The COGS includes costs directly related to the company’s product such as materials for manufacturing, inventory for shops and labor costs. Indirect costs are not included in the COGS.
Once a business has calculated its gross earnings, it may then subtract the rest of its business expenses including costs such as utilities, loan repayments, office supplies, contractor fees and many other expenses. The difference between the business’s gross earnings and its operating and capital expenses is its profit.
The 2018 top banks in Nigeria by earnings
From the table and figure above, year 2016 and 2017 record the same banks with highest and lowest gross earnings. Banks with highest gross earnings are; Zenith Bank Plc (#454,808,000,000 (2016), #673,636,000,000 (2017)), Access Bank Plc (#331,095,406,000 (2016), #430,994,240,000 (2017)) and Guaranty Trust Bank Plc (#365,916,859,000 (2016), #360,236,308,000 (2017)).
Banks with lowest gross earnings are; Suntrust Bank Limited (#1,372,201,000 (2016), #2,418,654,000 (2017)), First Bank Nigeria Limited (#12,727,000,000 (2016), #13,714,000,000 (2017)), Wema Bank PLC (#54,246,809,000 (2016), 64,858,369,000 (2017))
|2016 (‘000 Naira)||2017 (‘000 Naira)|
|Suntrust Bank Nigeria Limited||1,372,201||2,418,654|
|First Bank Nigeria Limited||12,727,000||13,714,000|
|Wema Bank Plc||54,246,809||64,858,369|
|Sterling Bank Plc||111,237,607||133,022,000|
|Diamond Bank Plc||131,474,851||142,901,279|
|Union Bank of Nigeria Plc||126,471,000||157,566,000|
|Stanbic IBTC Bank Ltd.||156,425,000||212,434,000|
|United Bank for Africa Plc||269,895,000||316,263,000|
|Guaranty Trust Bank Plc||365,916,859||360,236,308|
|Access Bank Plc||331,095,406||430,994,240|
|Zenith Bank Plc||454,808,000||673,636,000|