Home Banking Nigerian banks’ earnings rise to N2.5trn with 5.1% profit growth to N573bn

Nigerian banks’ earnings rise to N2.5trn with 5.1% profit growth to N573bn

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the positive growth reported for the Nigerian economy in the second quarter 2021, coming amid the adverse effect of the COVID-19 pandemic, the banking sector has recorded mixed financial performance for the first half 2021, H1’21.

Financial Vanguard’s findings from the financial results of 14 leading banks listed on the Nigerian Exchange Limited, NGX, shows that the combined gross earnings grew marginally by 2.9 per cent to N2.463 trillion from N2.399 trillion recorded in the corresponding period of 2020, H1’20. This gives a significant under-performance against the 5.0 percent recorded as the Gross Domestic Product, GDP, growth at 5.01 per cent.

However, the banks recorded positive performance in Profit Before Tax, PBT, which grew by 5.1 per cent to N573.7 billion in H1’21 from N545.7 billion in H1’20; but inflation at 17.75 per cent in HI’20 has put pressure of the profit growth rate.

However, the banks recorded positive performance in Profit Before Tax, PBT, which grew by 5.1 per cent to N573.7 billion in H1’21 from N545.7 billion in H1’20; but inflation at 17.75 per cent in HI’20 has put pressure of the profit growth rate.

They further noted that tier- 2 banks were relatively better in terms of profit, especially Wema Bank, Unity Bank and Jaiz Bank, an indication that tier- 2 banks are navigating the challenges of macroeconomic environment more efficiently.

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