On top of the ranking list of the 11 banks based on their account maintenance earnings in the half-year of 2023 is Zenith Bank with N21.02 billion generated.
Next in the ranking is Access Holdings with N13.363 billion.
Others are: GTCO N10.481 billion ; UBA N9.64 billion; First Bank N5.19 billion; FCMB N3.85 billion ;Stanbic IBTC N2.643 billion and Sterling Bank N2.392 billion account maintainance income.
Fidelity Bank generated N1.769 billion from account mainrainance ; Wema Bank N1.636 million and Unity Bank N745 million.
Meanwhile, leading commercial banks recorded significant FX revaluation gains estimated at a combined gain of about N1.7 trillion in the first half of 2023, a significant increase compared to a combined gain of N66.559 billion in H1 2022.
This is according to data collated from the 2023 half-year financial statements released by the banks.
The lenders are Access Holdings, FBNH, FCMB, Fidelity, GTCO, Stanbic IBTC, Sterling Bank, UBA, Unity Bank, Wema Bank, and Zenith Bank. Ecobank is not included due to its pan-African status.
Except for Unity Bank which incurred an FX revaluation loss of about N35.42 billion, the other banks reported significant FX revaluation gain.
The Central Bank according to analysts is most likely the principal counterparty involved in the FX transactions responsible for these significant gains.
According to well-informed sources, the magnitude of the forex profits appears to have unsettled high-ranking officials at the Central Bank, prompting them to release a regulatory circular two weeks ago.
However, analysts say the CBN’s directive to banks, to set aside FX revaluation gains rather than using them for dividends or operational expenses, is undoubtedly a precautionary and prudent regulatory measure aimed at safeguarding the financial stability of the banks
However, the timing of such directives is a point of concern. When regulatory directives arrive after financial results have been reported, they may not align with market expectations.
Investors often factor in FX revaluation gains when assessing and valuing banks, as these gains can significantly impact metrics like earnings per share (EPS).
Forex unification, inflation effects trigger negative investor sentiments Indications have emerged that the effect of the foreign exchange harmonisation by the central bank which
saw a translation of the exchange rate above N700 from the previous band of between N435 and N467/$1 has led to negative sentiment in the local bourse.
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