Defying the economic instability and inflation, lenders in Nigeria have stayed in the positive profit-wise as they recorded over N831bn from the first to the ninth month of the year 2022, a 20% increase on what was record within the same period in the previous year.
The International Monetary Fund (IMF) provided corroboration to this data in its staff report on Nigeria which is now published and available in the public domain. The fund noted that despite regulatory measures put in place to curb liquidity in the system, the banking industry in Nigeria has managed to retain both high profitability and liquidity.
The Monetary Policy Committee(MPC) during a significant number of meetings took very strict steps to tighten liquidity in a bid to control the inflation rate, which is rising rapidly in the country and across the globe. Inflation is currently at 21.09 per cent in Nigeria, yet the IMF has judged the sector’s profitability and liquidity levels to be fairly stable.
Recent figures revealed the 11 lenders who raked in the N831bn in profit after tax, and the list includes Zenith Bank, FBN Holdings, GTCO, Access Holdings, Sterling Bank, United Bank for Africa, Union Bank, Fidelity Bank, Wema Bank, Unity Bank and Stanbic IBTC. This is a marked jump from the N689.285bn recorded during the same period in 2021.
FBN profit before tax (PBT) rose by 100% to N105.5 billion, against N52.9 billion reported within a comparable timeframe in 2021, while Zenith PAT rose 9% from N160.6 billion to N174.3 billion in the same period.
GTCO brought in N169.7 billion PAT, a 12% rise from N151.9 billion recorded in 2021, while Fidelity saw a 34.7% growth in profits from N28.1 billion in 2021 to N37.8 billion.UBA’s PAT also saw a 10.9% shift to N116 billion from N104.6 billion, while Unity Bank’s hit N2.029 billion, a 5% improvement on the N1.9 billion recorded within the same timeframe in 2021.
Stanbic IBTC realised N55.19 billion PAT, rising from N39.95 billion while Wema recorded a 31.17% increase to N8.179 billion in 2022 from N6.235 billion in 2021. Union’s PAT also rose by 14.2% to N17.3 billion from N15.2 billion in 2021.At Access Holdings, PAT was N137.0 billion rising from N122.0 billion, while Sterling’s increased 39% from N5.9 billion to N8.2 billion.
IMF stated that NPL ratio in the banking sector has fallen to about 5% as “the share of questionable loans rebounded after the CBN announced the expiration of pandemic-related forbearance in loan classification by end-2023.”
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