Regulatory Alerts2025-12-09
NDIC Quarterly Vol 39 No 3&4 2024 – Financial Performance and Condition of Deposit Money Banks in the Third & Fourth Quarter of 2024
The Nigerian Deposit Money Banks (DMBs) experienced a slight overall improvement in the fourth quarter of 2024, with total assets growing by 1.81% to N160,596.96 billion and Profit Before Tax (PBT) surging by 42.20% to N1,534.48 billion, primarily due to increased operating income and a substantial rise in recoveries. The industry's capital position strengthened as the Capital Adequacy Ratio (CAR) improved by 124 basis points to 15.25%, and asset quality positively shifted with the Impaired Credit to Total Credit ratio declining to 4.50%, below the prudential limit. However, the Average Liquidity Ratio (ALR) decreased by 613 basis points to 49.96%, indicating reduced liquidity, even as the Capital Market sector saw a significant 61.38% increase in credit exposure.