Naira devaluation raises bank loans by 46.4%- Report
Loan
Naira devaluation raises bank loans by 46.4%- Report
Nike Popoola
Naira devaluation resulted in a 46.4% surge in the loan book of banks to N42.7bn at the end of 31 December 2023.
This is according to a report by Agusto & Co. on 2024 Banking Industry Report.
“Although concerns about the uncertainties in the macroeconomic environment elicited a waned appetite for risk assets creation, the steep naira devaluation resulted in a 46.4% surge in the loan book to N42.7bn as at 31 December 2023,” it stated.
The report reviewed the performance of the banking industry in the financial year ended 31 December 2023 and near term expectations.
Notwithstanding, it added, the challenging macroeconomic environment in the year under review, the industry remained resilience and maintained a growth trajectory.
The report stated that, “The industry’s profitability strengthened during the year under review supported by the foreign currency revaluation gains, enlarged loan book and uptick in the prevailing interest rate.
“Although the operating expenses grew by 32.8% based on the raging inflationary pressure and business expansion, the return on average equity (ROE) reached a historic high of 44.9%, up from 21.6% in the prior year.”
