Kudos GTBank’s GTCO for this massive collect: “Guaranty Trust Holding Company (GTCO) posted a net profit of N905.6 billion in the first half of the year, as a mixed bag of favourable factors helped propel its bottom line to the highest level ever reached by any Nigerian quoted company….Net interest income, a key profitability metric that measures the difference between how much lenders charge on loans or earn on financial assets and how much they pay for borrowings or for keeping depositors money, climbed 177 per cent to N491.5 billion” – Premium Times.
Typically, as the Central Bank of Nigeria hikes interest rates, the alpha moments will happen for banks, because they can charge higher interests.
Good People, as they say, you work with what you are presented with. It is not the bank’s fault that interest rates are high and US dollar forex movements are favouring them.
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Yet, it is an illusion: how can banks make such profits when manufacturers are struggling? Answer: they are following the directives of the central bank, and this party will continue because the US dollar position is still shifting, triggering inflationary wahala in a country that imports largely everything, with farming communities overrun by bandits. And to fight that inflation, you raise interest rates.
Is that not a vicious circle? Indeed, the miracle of Nigeria on its economic development!
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