Banks rake in N8.4 trillion from customer loans in 2024 amidst high interest rates 

According to the analysis of ten publicly listed banks on the Nigerian Exchange, a staggering N8.41 trillion was generated from interest on customer loans.

This represents a 106% increase compared to the N4.08 trillion recorded in the previous year, according to analysis by Naijaonpoint Research.

This dramatic surge follows the Central Bank of Nigeria’s (CBN) decision to adopt one of its most aggressive monetary policy stances in recent history.

CBN raised the benchmark interest rate by over 800 basis points in 2024 to 27.5%, in a bid to tame inflation and stabilize the economy.

This tightening cycle created a fertile ground for banks to adjust their lending rates upwards, effectively doubling their income from loans and advances to customers.

By year-end 2024, the combined loan portfolio of the ten listed banks stood at N51.36 trillion, marking a 37.6% increase from the figure recorded in 2023. This growth reflects a combination of increased credit activity and the repricing of existing loans to align with the prevailing interest rate dynamics.

While Access Corporation recorded the highest interest income on customer loans, Wema Bank led the list based on interest on average loan, at 23%.