Forex gains: Banks’ profits balloon by 156% to N2.3tr ccording to recent reports, Nigerian banks have experienced a significant increase in profits due to gains in foreign exchange (Forex). The profits of these banks have surged by 156% to reach a staggering N2.3 trillion.
Key points from the reports include:
1. Extraordinary Profits: Leading banks in Nigeria have reported extraordinary profits, largely driven by gains from foreign exchange revaluation due to the depreciation of the Naira.
2. Profit Before Tax: The financial reports submitted by these banks to regulators indicate a profit before tax of N2.3 trillion.
3. Forex-Related Transactions: Approximately 63.6% of the profit, amounting to N1.457 trillion, came from foreign exchange-related transactions.
4. Growth Rate: The forex profit growth rate for these banks is an impressive 546.5% compared to the corresponding period in 2022.
5. Comparative Performance: Among the reviewed banks, Zenith Bank topped the chart with N505.0363 billion in profits, followed closely by UBA with N502.091 billion, GTB with N433.203 billion, Access Bank with N294.416 billion, and First Bank with N270.333 billion.
6. Tier-1 and Tier-2 Banks: The profitability of the Tier-1 banks accounted for 87.5% of the combined profits of the nine banks reviewed, while Tier-2 banks accounted for the remaining 12.5%.
7. Future Expectations: Economic analysts predict that when the results of the remaining banks are released, the combined profit is expected to exceed N3.5 trillion.
These reports highlight the significant impact of Forex gains on the profitability of Nigerian banks, showcasing a remarkable increase in profits for the sector.