Ecobank, Zenith, UBA, others rake in N14.4 trillion in interests from loans

• The Central Bank of Nigeria, done the Monetary Policy Committee, accrued the involvement rates severally successful 2024
• From 18.75% astatine the opening of the year, the monetary argumentation complaint closed the twelvemonth astatine 27.5%
• Recently released fiscal reports amusement that Nigerian banks person cashed retired large from the accrued involvement rates

Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.

Nigerian banks person released the full-year fiscal study for 2024, and the reports filed truthful acold with the Nigerian Exchange Limited (NGX) amusement monolithic gross growth.

Ten banks person reported a combined N14.4 trillion successful gross from involvement connected loans and advances offered to customers successful 2024.

This is much than treble the N6.34 trillion generated by these aforesaid banks successful the preceding fiscal year, and represents a 126.5% maturation year-on-year.

Banks cashed retired large clip from the accrued involvement rates, doubling their gross from involvement rates, year-on-year. Photo credit: CBN/Pius Utomi Ekpei/Nurphoto
Source: UGC

Ten banks gain N14.4 trillion successful interests

Ecobank is the highest with N2.76 trillion generated from indebtedness interests successful 2024, a 128.3% maturation from the N1.21 trillion reported successful 2023.

Zenith Bank follows intimately down with N2.72 trillion interests successful 2024, 138% up from N1.14 trillion successful 2023.

First Holdco, the genitor institution of First Bank of Nigeria Plc, reported N2.4 trillion involvement successful 2024, a 158% maturation from N936.68 cardinal successful 2023.

United Bank for Africa Plc reported a nett N2.37 trillion, up from N1.07 trillion successful 2023, portion GTCo reported N1.34 trillion up from N550.75 cardinal successful 2023.

The others are Fidelity Bank Plc with N950.58 cardinal interests from loans successful 2024, FCMB Group Plc with N621.53 billion, Stanbic IBTC Holdings Plc with N566.46 billionWema Bank Plc with N354.63 billion, and Sterling Financial Holdings Company Plc with N260.8 billion.

CBN increases involvement rates

Recall that the Central Bank of Nigeria accrued the involvement rates severally successful 2024, raising it from N18.75% astatine the opening of the twelvemonth to 27.5% by year-end.

The extremity was to aggressively tackle the accelerated rising inflation, and the Monetary Policy Committee voted to follow accepted methods similar hiking involvement rates.

ThisDay reports that this hike besides rubbed disconnected connected the mean premier lending complaint successful Nigeria, pushing it to 18.56%, not truthful acold from the all-time precocious of 19.66% past seen successful November 2009.

Banks rake successful treble profits from precocious involvement rates

Banks person mostly benefited from the accrued involvement rates, with astir of them signaling much than a 100% maturation successful profit.

However, determination person besides been concerns that businesses successful antithetic sectors similar manufacturing and FMCG person received the abbreviated extremity of the stick.

The CBN Monetary Policy Committee decided that hiking involvement rates would beryllium the astir effectual mode to cheque inflation. Photo credit: CBN
Source: Getty Images

Mr. Omordion Ambrose, the Chief Research Officer, InvestData Consulting Limited, noted that portion the higher involvement rates whitethorn construe to much profits for the banks, it is not bully quality for tiny and medium-scale businesses.

He said;

“Businesses request a batch of recognition facilities to survive, but successful an situation wherever the lending complaint is astronomical, galore enterprises, particularly tiny and medium-scale, mightiness find it highly hard to past arsenic their products volition stay uncompetitive and the outgo of accumulation and the merchantability prices to consumers volition stay high.”

Mr. Tajudeen Olayinka, Investment Banker and Stockbroker, noted that successful summation to the MPR, different factors besides power lending rates.

He explained that they besides see their deposit mix, idle customers’ deposits successful the slope arsenic play a cardinal relation successful determining the bank’s lending rates.

Ecobank announces immense profits, N735 cardinal after-tax

In related news, Ecobank Transnational Incorporated reported an after-tax profit of N735.9 billion for the fiscal twelvemonth 2024.

This shows that its gross net climbed 131% from N1.83 trillion to N4.22 trillion successful 2024.

The group's gross jumped from N1.34 trillion successful 2023 to N3.11 trillion, a staggering 133% growth.

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng