Shareholders’ funds refers to the amount of equity in a bank, which belongs to the shareholders. The amount of shareholders’ funds yields an approximation of theoretically how much the shareholders would receive if a business were to liquidate In this educational article, we list the 2018 top banks in Nigeria by Shareholders’ funds.
It is the value of the shareholders’ interest in a bank. For banks (as opposed to group) accounts it is simply all assets less all liabilities. For consolidated group accounts the value of minority interests should also be excluded. The addition of minority interests gives us “shareholders’ fund including minority interests”. Further adjustments give us total equity.
The balance sheet value of assets does have some significance for valuation. However, changes in shareholders’ funds are also important. The items within shareholders’ funds (share capital, reserves and retained profit) are usually of little importance, although the amount of distributable reserves might matter to shareholders if it is too low, and (even more rarely) to creditors if it is too high.
Return on shareholders’ investment ratio is a measure of overall profitability of the business and is computed by dividing the net income after interest and tax by average stockholders’ equity. It is also known as return on total equity (ROTE) ratio and return on net worth ratio.
The 2018 top banks in Nigeria by Shareholders’ funds
Zenith Bank PLC (#653,596,000,000 (2016), #775,917,000,000 (2017)), Access Bank PLC (#454,494,580,000 (2016), #515,447,409,000 (2017)) and Guaranty Trust Bank PLC (#453,873,741,000 (2016), #511,693,924,000 (2017)) have the highest shareholders’ fund in the year 2016 and 2017.
Suntrust Bank Nigeria Limited (#10,449,561,000 (2016), #10,607,434,000 (2017)), Wema Bank PLC (#40,099,362,000 (2016), #43,705,146,000 (2017)), and Sterling Bank PLC (#86,316,342,000 (2016), #89,583,000,000 (2017)) have the lowest shareholders’ fund in the year 2016 and 2017.
| Bank Name | Shareholders’ Fund | |
| 2016 (‘000 Naira) | 2017 (‘000 Naira) | |
| Suntrust Bank Nigeria Limited | 10,449,561 | 10,607,434 |
| Wema Bank Plc | 40,099,362 | 43,705,146 |
| Sterling Bank Plc | 86,316,342 | 89,583,000 |
| Stanbic IBTC Bank Ltd. | 108,228,000 | 133,317,000 |
| Union Bank of Nigeria Plc | 178,891,000 | 211,156,000 |
| Diamond Bank Plc | 211,336,909 | 215,052,615 |
| United Bank for Africa Plc | 305,369,000 | 283,593,000 |
| First Bank Nigeria Limited | 436,305,000 | 462,906,000 |
| Guaranty Trust Bank Plc | 453,873,741 | 511,693,924 |
| Access Bank Plc | 454,494,580 | 515,447,409 |
| Zenith Bank Plc | 653,596,000 | 775,917,000 |
| Total | 2,938,959,495 | 3,252,978,528 |
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