A new report by Coronation Asset Management on Nigerian Banks titled ‘Nigerian Banks, Resilience Built In’ has shown that Nigerian banks’ earnings have been remarkably resilient over the interest rate cycle, even as their profitability has also improved over time. x“It is a unique 10-year study of the margins and profitability of six listed banks: Zenith Bank; GT Bank; Access Bank; FBN Holdings; UBA, and Stanbic IBTC. These banks have adapted successfully to many changes in interest rates over the 10 years from 2010 to 2020. It stated that the return on average equity (RoAE) and return on average assets (RoAA) of the six banks studied have both converged and improved over 10 years. According to the report, the trend appears to be under-appreciated by investors, even as the report showed the positive investment potential in the sector.”

Source: The Guardian July 06, 2021 02:37 UTC