Regulatory Alerts2025-12-09
NDIC Quarterly Vol 39 No 1&2 2024 – Financial Performance and Condition of Deposit Money Banks in the First and Second Quarter of 2024
In the first half of 2024, Nigerian Deposit Money Banks (DMBs) fortified their financial position, with total assets rising 8.62% to N143,324.67 billion and customer deposits growing by 10.48%, demonstrating increased funding and balance sheet expansion. The industry's asset quality improved markedly as the impaired credit ratio dropped to 3.90% (below the 5.0% prudential limit), alongside a significant 147 basis point increase in the average Capital Adequacy Ratio to 12.52%, reflecting enhanced resilience. Profitability also saw a substantial boost, with Profit Before Tax soaring by 43.71% to N1,514.90 billion, despite a 3.5% decrease in the Net Credit to Deposit ratio, indicating a shift towards greater liquidity and possibly reduced direct lending relative to deposits.