Nine Nigerian banks collectively generated a staggering ₦14.26 trillion in interest income for the year 2024, marking a 119.55% increase compared to ₦6.49 trillion in 2023.
This is according to an analysis of the audited financial results of the financial institutions.
An analysis of the audited financial results of First Holdco, Guaranty Trust Holding Company, Zenith Bank Plc, United Bank for Africa, FCMB Group, Fidelity Bank, Stanbic IBTC Holdings, Access Holdings, and Wema Bank filed with the Nigerian Exchange Limited (NGX) showed revenue earned from interest in the nine banks in the 2024 financial year rose by 119.55 percent to ₦14.26 trillion compared to ₦6.49 trillion in 2023.
Key Highlights:
- Top Performers:
- Access Holdings: ₦3.11 trillion (98.69% growth).
- Zenith Bank: ₦2.72 trillion (137.74% growth).
- First HoldCo: ₦2.39 trillion (155% growth).
- UBA: ₦2.37 trillion (120% growth).
- GTCO: ₦1.32 trillion (148% growth).
- Stanbic IBTC: ₦566 billion (109% growth).
- FCMB Group: ₦621.81 billion (75.16% growth).
- Fidelity Bank: ₦803.05 billion (85.03% growth).
- Wema Bank: ₦354.63 billion (91.03% growth).
- Interest Rate Impact: The surge in earnings was driven by consistent hikes in interest rates by the Central Bank of Nigeria (CBN), with the Monetary Policy Rate (MPR) rising from 18.75% in 2023 to 27.50% in 2024.
- Challenges: Despite the impressive figures, some of the income was linked to non-performing loans, with banks like Zenith Bank and UBA reporting billions in impaired assets.