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Banks Gain from Interest and Non Interest Surge

By on December 5, 2012

The Banks in the Nigeria would be smiling and heaving a sigh of relief as the year rounds up following their recent posting of profits and earnings from the activities on the Interest and Non Interest  income inflows , reflecting a positive outlook for the sector four years after the Banking crisis .

From the analysis the Five leading banks in the country are set to  post a combined profit of about $6.4 billion in an unprecedented record for a sector that has gone through various travails and challenges since the reforms of 2008.

Investors are buoyed by the positive news of the profit earnings of the banks, especially  in the rise of their market value even at a time when  the sector had been viewedwith a lot of skepticism and some level of cynicism.

On this development analysts from the Oxford Business Group an expert study group stated that it marked a transformation for the sector  and further said “the crash came after several years of rapid growth that were fuelled by “margin lending” – banks’ lending to investors who then used the cash to buy the banks’shares – and other soft and suspect lending deals”.

This is remarkable as it comes at a time when Banks in Greece, United States, Great Britain, Spain and Portugal are posting no improvement in the Interest and Non Interest areas, owing to the recession and crisis of the eurozone and U.S debt scare .

Commendation also goes to the radical CBN Governor Lamido Sanusi for putting the Banks through various rigorous reforms and stress test to ensure they drive the areas that will account for market value and also stick to the guidelines and regulations of the banking system.

It is believed with this wonderful  2012 experience for the Banks in Nigeria, Customers and Shareholders will once again find the sector a viable, dynamic and key  sector of the economy to reckon with in the drive for Nigeria’s competitiveness in the global economy.

One Comment

  1. Ab Imodu

    December 5, 2012 at 8:03 pm

    The hard work , stringent fiscal and monetary policies of an economist at the helm of the apex bank of Nigeria. I would advocate for an economist to rule Nigeria so that the turn around we need in the country will be achieved.