• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets Fixed Income Securities

7 Key Factors That Have Affected Nigerian Banks Profits In 2013

NairametricsbyNairametrics
10 years ago
in Securities, Stock Market
Share on FacebookShare on TwitterShare on Linkedin

Recently released results of the banks in the Nigerian Stock Exchange was received with mixed reviews. Whilst some banks performed well and beat prior year results others faired well below expectations. However, overall earnings growth were not as fantastic as seen in 2012 and thus investors expect things to get tougher in the coming months. The banking index for example has risen 17.8% YTD and 2.83% QTD compared to the overall index 34.5% and 3.23%. So what are the likely factors affecting banks results this year and possibly in the coming years;

 

1. Path to Zero C.O.T – COT reduced from 5 per mile to 3 per mille. 2per mille next year and 1 per mille the year later and zero. This will likely reduce bank commission and fees and integral part of banks income base.

2. No ATM Charges – N100 charge for ATM withdrawals on third party banks as well as N100 monthly ATM charge also removed. This affects banks revenue as well

3. Increase in operating cost and competition – The operating environment for banks is still very challenging with pressures on cost of funds. This was evident in banks percentage of operating expenses to income or cost to income ratio. Banks also face renewed competition amongst each other as efforts are now geared towards the retail sector as well as SME’s.

4. Tight CBN Regulations restricting risk taking – The CBN has been tightly regulating banks in a bid to avoid the banking sector crisis of 2008/2009. This has put several limits on banks borrowing abilities.

5. IFRS Accounting – The International Financial Reporting Standards has provisions that requires new classifications for preparation of financial statements. This provides that certain assets which are hitherto carried in the balance sheet may have to be written off in the event that the assets are not proven to be recoverable or operational.

6. CBN CRR – The CBN CRR policy on banks restricting the utilisation of public sector funds in their disposal also affects income potentials from fixed income securities

7. Deposit Rates – The CBN has been clamping down on banks to increase their deposit rates to customers. Banks now pay as much as 3% on savings deposit as against 1% average in 2012. This is an additional cost to banks as they now have to pay more for deposits in the custody.

Nairametrics

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *







NM newsletters
Bankers committee
Kwakol
Abbey
IMT

Zenth Bank
UBA
Mega Millions

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • WHO approves second malaria vaccine for use in African countries from 2024
  • Rapper Drake dashes $50,000 to fan who was served “Breakfast”
  • OPEC oil output in September rose on Nigerian and Iranian production – Survey 

Follow us on social media:

Recent News

WHO , EG.5 coronavirus variant, US, China

WHO approves second malaria vaccine for use in African countries from 2024

October 2, 2023
Rapper Drake dashes $50,000 to fan who was served “Breakfast”

Rapper Drake dashes $50,000 to fan who was served “Breakfast”

October 2, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Contact Us
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In