Since the Central Bank of Nigeria, CBN introduced a hike in the Monetary Policy Rate (MPR) from 11.5 per cent to 13 per cent in June 2022, 13 banks have generated N2.04 trillion from the interest on customers loan and other securities investments in the first half, H1 2022.
This earning generated in H1 indicates a 23 percent increase from N1.66 trillion earned by these 13 banks in the corresponding half-year ended June 30, 2021.
In a bid to respond to global economic changes, the CBN had, in league with other African economies, further agreed to raise the MPR benchmark rate to curb inflationary pressures.
This decision was ratified in July 2022 as the MPR was again, moved to 14 percent.
According to a report, the sum of N1.37 trillion was generated by the 13 banks from interest on loans and advances to customers in H1 2022. This figure was pegged at N1.09trillion in H1 2021.
The banks in this report include United Bank for Africa Plc (UBA), Zenith Bank Plc, Access Holdings Plc, FBN Holdings, and Ecobank Transnational Incorporated (ETI).
Others are: Guaranty Trust Holdings Plc, Stanbic IBTC Holdings, FCMB Group Plc, Fidelity Bank Plc, Wema Bank Plc, Sterling Bank Plc, Union Bank of Nigeria Plc and Jaiz Bank Plc.
It was also noted that the prime lending rate had surged to 12.29 percent in June making it the highest recorded so far in 17 months.
On the other hand, the maximum lending rate rather took a dip as it dropped from 27.65 percent in January to 27.61 percent in June 2022.
The rising cost of energy and food prices coupled with the global inflation witnessed across the world has made a majority of the nations’ Central Banks adopt monetary tightening measures by enabling these rate hikes.