Nigerian Banks Face Profit Decline as Treasury Bill Issuance Slows

Fitch Ratings forecasts reduced Nigerian bank profits in 2018 due to slower federal government treasury bill issuances. This trend aligns with the Central Bank of Nigeria's Q1 2018 rollover data showing NGN1.1 trillion maturing against NGN1.3 trillion issued.

Tier one banks like First Bank, UBA, GT Bank, Access Bank, and Zenith Bank are expected to outperform due to higher capitalization and stronger financial metrics.

These institutions maintain average equity returns exceeding 20%, significantly outpacing tier two banks' 4-6% returns, reflecting their resilience amid economic challenges.

Fitch Ratings anticipates diminished bank profits for 2018 as federal treasury bill issuance slows. This trend matches the Central Bank of Nigeria's Q1 2018 data: NGN1.1 trillion rollovers versus NGN1.3 trillion maturing bills.

Tier one banks including First Bank, UBA, GT Bank, Access Bank, and Zenith Bank are positioned to benefit from stronger capitalization and higher return on average equity.

These institutions report average equity returns above 20%, contrasting with tier two banks' 4-6% returns, indicating greater resilience in the current economic environment.