Six Nigerian banks have reported impressive financial results for the first half of 2024, generating a combined profit before tax of N979.19 billion. This marks a remarkable 133% increase from N421.04 billion in the same period last year. The banks—Ecobank Plc, FBN Holdings Plc, Wema Bank Plc, Jaiz Bank Plc, FCMB Group Plc, and Sterling Financial Holdings—have benefitted from rising interest and non-interest income, largely due to the Central Bank of Nigeria’s monetary policy adjustments.
Ecobank led with a profit of N443.5 billion, a 195% increase year-on-year, while FBN Holdings reported N411.99 billion, up 100.9%. Other banks also showed significant growth, with FCMB Group earning N64.21 billion and Wema Bank N30.57 billion, reflecting increases of 68% and 153% respectively.
Analysts attribute this surge to the naira’s devaluation, which has boosted profits for banks with substantial dollar-denominated assets. Investment experts noted that banks have strategically maintained net long positions in USD, allowing them to capitalize on currency fluctuations. This trend is expected to continue, given the ongoing economic challenges, including high inflation and liquidity issues in the banking sector.
Despite the positive results from these six banks, major players like Access Holdings, Zenith Bank, and United Bank for Africa have yet to release their H1 2024 results, leaving the overall sector performance still uncertain.
