Following a high inflation rate and regulatory charges, a total of 14 Nigerian banks reported N2.03 trillion total operating expenses in nine months of 2022, representing an increase of 19.2 per cent from N1.7 trillion reported in the corresponding nine months of 2021, analysis of the banks’ results has revealed.
The banks are: Ecobank Transnational Inculpated (ETI), FBN Holdings Plc, Guaranty Trust Holdings Plc (GTCO), Access Holdings Plc, United Bank for Africa Plc (UBA) and Zenith Bank Plc.
Others include: Union Bank of Nigeria Plc, FCMB Group Plc, Fidelity Bank Plc, Wema Bank Plc, Unity Bank Plc, Stanbic IBTC Holdings Plc, Sterling Bank Plc and Jaiz bank Plc.
Nigeria’s inflation rate according to the National Bureau of Statistics (NBS), moved to 20.77 per cent in September 2022 from 15.6 per cent reported in January.
Apart from the inflation rate, the 0.5 per cent Asset Management Corporation of Nigeria (AMCON) charges On banks’ total assets on and off-balance sheet items and Nigeria Deposit Insurance Corporation (NDIC) levy mounted pressure on banks expenses in the period under review.
Also, the dwindling fortune of the naira, among others as factor, contributed to the rise in banks operating expenses within the review period.
Further analysis of the reports shows that in nine months of 2022, the profit before tax of the 14 banks stood at N1.08trillion, indicating an increase of 22 per cent from N889.6billion reported in nine months of 2021.