15 of 21 banks suffer losses on audited financial statements 2021-2022

Of the 21 banks that released audited financial statements for 2022, 15 posted losses last year. This record loss is a result of a difficult economic environment that has triggered domestic debt swapping programs or debt restructuring that has negatively impacted financial institutions.

According to the 2022 consolidated financial statements, most of the bank’s assets have been depreciated, especially due to lower coupon rates and increased maturities from 5 to 15 years. Consolidated Bank has been the hardest hit, recording a loss of about ¢2 billion in 2022.

In fact, domestic banks suffered the biggest losses. However, financial brokers rebounded quickly in the first quarter of 2023, recording healthy earnings. Six Profit-taking Banks (PBTs) in 2022 include GT Bank (¢191 million), Societe Generale (¢172 million), FBN Nigeria (¢102 million) and UBA (¢91 million).

In 2021-2022, 15 of the 21 banks posted losses. audited financial statements In terms of asset impairment, Absa Bank suffered the most, writing off ¢2.12 billion. It was followed by write-offs of ¢2.11 billion and ¢2.08 billion by Consolidated Bank and GCB Bank, respectively.

However, FBN Nigeria (¢212m), Bank of Africa (¢187m) and Omni BSIC149m) were least affected. The equity capital ratio, a key indicator of financial soundness, was far below the industry standard of 10% for the consolidated bank (-5%).

However, FBN Nigeria, Access and GT Bank recorded the highest capital ratios in the banking industry at 57%, 37% and 36% respectively.

Meanwhile, NIB and UMB are banks that have not yet released financial statements for 2022. Sources previously reported that Ghana’s banks lost about ¢15 billion in 2022 due to domestic debt swapping programs.

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