Nigerian banks rake in N1.7tn profits from forex harmonization

Nigerian commercial banks recorded significant Foreign exchange revaluation profits estimated at N1.7 trillion in the first half of 2023.

This was disclosed through the data collated from the 2023 half-year financial statements released by the banks.

The N1.7 trillion gain significantly increased compared to a combined gain of N66.559 billion in H1 2022.

Access Holdings, FBNH, FCMB, Fidelity, GTCO, Stanbic IBTC, Sterling Bank, UBA, Unity Bank, Wema Bank, and Zenith Bank are lenders.

Meanwhile, Ecobank is not included due to its pan-African status; Union Bank has yet to release its half-year results.

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The other banks reported significant FX revaluation gains except for Unity Bank, which incurred an FX revaluation loss of about N35.42 billion.

The surge in FX revaluation gains can be attributed to the devaluation of the Naira, which reached N769.25/$1 in June 2023, compared to its 2022 closing rate of N461.50/$1.

Group Managing Director/ Chief Executive Officer of UBA, Oliver Alawubam, in a statement, said the gains are due to the harmonization of the currency exchange rate in Nigeria.

“Whilst the Group recorded strong double-digit growth in revenues and profits from its operations, the result also reflects the effect of sizable revaluation gains arising from the harmonization of currency exchange rates in Nigeria.

“Our reporting currency found a new exchange level at about N756 to 1US$ as of 30 June 2023, compared to N465 at the beginning of the year,” he said.