ADEMOLA ADEBISI
The yields from credits to customers from 11 banks jumped 10 per cent in the first quarter of the year, rising to N791.9 billion by March 31, 2018.
The banks recorded N718.96billion in the corresponding period in 2017.
Nigeria banks continued to benefit from higher yield from loan and advances to customers and interest income from investment in securities.
InsideBusiness Online gathered that FBN Holdings and Guaranty Trust Bank Plc were the only banks out of the 11 that reported decline in interest income in the period under review.
Specifically, FBN Holdings’ interest income dropped by 2.8 per cent to N110.9 billion in Q1 2018 from N114.1 billion in Q1 2017 while Guaranty Trust Bank announced nearly four per cent drop in interest income to N80.77 billion from N84.12 billion reported in Q1 2017.
For Wema Bank Plc, its interest income remained flat at N12.64 billion for the second consecutive quarters.
Sterling Bank reported the highest gain in interest income to N31.8 billion in Q1 2018, 25.6 per cent increase over N25.3 billion in Q1 2017, followed by Zenith Bank Plc that reported 20.8 per cent increase in interest income to N142.6 billion in Q1 2018 from N118.09 billion in Q1 2017.
Zenith Bank in a statement, said, “Our asset mix continues to do well, driven by interest earned on government securities and our corporate business.
“This growth in interest income translated into an improved Profit before Tax (PBT) growth of 22.2per cent and a Profit after Tax (PAT) increase of 25.5per cent compared to March 2017, at N54 billion and N47 billion respectively.”
Meanwhile, Access Bank Plc’s interest income gained 20.5 per cent to N95.6 billion in Q1 2018 from N79 billion in Q1 2017 while United Bank for Africa’s interest income rose by 17.7 per cent to N90.3 billion from N76.76 billion reported in Q1 2017.
Other banks with growth in interest income include, Stanbic IBTC with 10.01 per cent to N29.5 billion in Q1 2018 from N26.84 billion in Q1 2017.
FCMB reported 9.3 per cent increase in interest income from N29.86 billion to N32.6 billion in Q1 2017 while ETI’s interest income rose by 9.4 per cent to N126.5 billion in Q1 2018 from N115.66 billion.
ETI in a statement, said, “Net interest income of $248 million, increased six per cent, or in constant currency, one per cent, primarily driven by an increase in investment securities balances partially offset by a reduction in net interest spreads due to lower interest rates.
“Non-interest revenue of $217 million, increased 13per cent, or in constant currency, increased six per cent, due to an increase in income from client-related FX sales and trading.
“The proportion of total net revenues generated by non-interest revenue (the non-interest revenue ratio) was 46.6per cent compared to 45.1per cent, in the previous year’s quarter.
“Despite non-interest revenue benefiting from higher-than-usual client-related FX sales and trading income, the NIR ratio, continues to reflect our strategic decision to grow the more sustainable revenues generated by cash management, trade finance and other related non-capital intensive revenue sources.”
Lastly, Fidelity Bank Plc reported 6.2 per cent increase interest income to N38.5 billion from N36.23 billion reported in Q1 2017.
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