The 2020 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 2020 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 2020 top banks in Nigeria by profits

Zenith Bank PLC is the largest bank in Nigeria this year by profit of N243bn. GTB comes in second place with N231bn and Access bank is 3rd with N115bn. Wema bank is the lowest with N6.7bn.