December 23, 2024
BANKS LOAN
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Commercial banks in the country have incurred an estimated $1 billion in loan losses during the first half of 2023, a significant increase compared to the same period last year, largely attributed to rising inflation and interest rate hikes by the Central Bank of Nigeria.

Amidst these macroeconomic challenges, banks like UBA and GTCO have seen over 1,000% year-on-year growth in impairment charges, affecting their core business of lending and reducing their net interest income.

Despite the adverse conditions, banks have managed to maintain non-performing loan ratios within regulatory limits, partly due to a substantial increase in non-interest income generated from forex revaluations. 

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