More than 10 banks in Nigeria made a total of about N4.20 trillion (that’s around $5.5 billion) in profit during the first nine months of this year, which is much more than the N2.07 trillion they earned during the same period last year. Some of the major banks include Zenith Bank, Guaranty Trust Holding Company (GTCO), Access Bank, and United Bank for Africa (UBA).
These banks saw their profits increase significantly, even though interest rates are quite high right now. The Central Bank of Nigeria has raised interest rates several times this year, going from 18.75% to 27.25%. This was done to control inflation and help strengthen the local currency. The banks are also benefiting from higher earnings from fixed-income investments, which have been good for their profits.
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The biggest banks have reported that their income from interest has more than doubled. For instance, Access Bank’s interest income went up by 116.65% to about N845 billion. GTCO made the largest profit among the banks, reaching N1.09 trillion, which is a staggering 195% increase from last year.
Other banks also reported strong profits. Zenith Bank made N827.28 billion, which is almost double from last year, while UBA reported N525.31 billion. Smaller banks like Stanbic IBTC and Wema Bank also saw their profits grow significantly.
While these banks are doing well, businesses in the private sector are worried about the effects of high interest rates on their own operations. They fear that continued rate hikes could lead to more bad loans for the banks.
