The Nigerian banking industry has
oligopolies spectrum. It should therefore not be surprising that the
profitability of banks can be said to be at a super normal level. In the
industry, the few banks operating with the oligopoly are making their profits
in billions following their stellar performance in the 2010 financial year,
Zenith bank and some other banks emerged the most profitable tier banks in
Nigeria.
oligopolies spectrum. It should therefore not be surprising that the
profitability of banks can be said to be at a super normal level. In the
industry, the few banks operating with the oligopoly are making their profits
in billions following their stellar performance in the 2010 financial year,
Zenith bank and some other banks emerged the most profitable tier banks in
Nigeria.
According to Agusto & co, the
Nigerian becoming industry’s profitability has returned to pre-crises level. An
analysis of the report showed that the Nigerian banking industry’s net earnings
grew remarkably by 75 percent in 2012. Pre-tax profits increased almost tenfold
to a N539 billion in the same period. The non performing loans of the banking
industry declined on the back of sale of delinquent loans to Asset Management
Corporation of Nigeria (AMCON), write-offs, aggressive recoveries by the bank
as well as cautions approach to loan growth by most banks.
Nigerian becoming industry’s profitability has returned to pre-crises level. An
analysis of the report showed that the Nigerian banking industry’s net earnings
grew remarkably by 75 percent in 2012. Pre-tax profits increased almost tenfold
to a N539 billion in the same period. The non performing loans of the banking
industry declined on the back of sale of delinquent loans to Asset Management
Corporation of Nigeria (AMCON), write-offs, aggressive recoveries by the bank
as well as cautions approach to loan growth by most banks.
