The development also resulted in a record rise in borrowing costs to its highest since the monetary policy rate was adopted in 2006.
Despite these hiccups, the seven banks still manage to be extremely profitable in the first half of the year, that is, from January to June 2023, making a cumulative N878.billion profit. Ecobank Transnational Incorporated ’s pre-tax operating profit increased by 18 per cent to N350.7 billion in H1, 2023, from $401 million in H1, 2022), highlighting improved profitability, which is due to revenue growth outpacing expense growth, enhancing profitability before accounting for provisions.
Wema Bank Plc’s profit before tax increased by 97 per cent to N12.05 billion in the first half of the year, H1 2023, from N6.1 billion in the corresponding period of 2022, H1 2022. Profit after Tax rose in the same magnitude to N10.48 billion from N5.3 billion in H1 2022. Analysts had attributed the growth to the forex devaluation and expected revaluation gains, high-interest rate environment, continuous cost management initiatives and improved risk assets creation.