CBN Posts N123.07bn FY Profit As External Reserves Drops 9.8% | Independent Newspapers Limited
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Money Market

CBN Posts N123.07bn FY Profit As External Reserves Drops 9.8%

Posted: Apr 29, 2016 at 9:19 pm   /   by   /   comments (0)


Bamidele Ogunwusi,Lagos


The Central Bank of Nigeria (CBN), has released its full year audited financial result ended December 2015 in accordance with the International Financial Reporting Standards (IFRS).

In the results, the bank of last resort posted total assets of N15.463 trillion from N13.741 trillion reported in the corresponding period of 2014, representing an improvement of N1.721 trillion or 12.52 percent.

Net income increased to N123. 074 billion from N33.60 billion recorded in 2014.The consolidated and separate income statement for the year ended 31st December 2015, which the apex bank posted on its website, also indicated that net interest income increased to N132.20 billion in 2015 from N38.45 billion in the previous year. Fees and commission income went down to N67.638 billion from N142.674 billion in 2014.

However, deposits rose to N8.685 trillion from N6.779 trillion, cash and cash balances rose significantly from N3.301 billion to N35.821 billion, external reserves, which was N5.837 trillion in 2014, went down to N5.263 trillion. This represents a drop of N573.829 billion or 9.8 percent.

The statement showed that income from fees and commission dropped from N142.67 billion in 2014 to N67.64 billion last year. Fees and commissions represent income from processing currency, Bureaux De Change (BDC) application and registration, commission on fund transfers and other banks and financial institutions application and licensing fees.

It also includes income from buying and selling foreign currency and other related transactions.

According to the statement, the CBN last year made N565.88 billion compared with the N261.20 billion it made in 2014 from foreign exchange revaluation gains.

Another highlight of the performance is the disclosure by the banking watchdog that expenses on its financial sector intervention activities increased from N136.97 billion in 2014 to N154.31 billion last year.

Intervention activities are those carried out by the CBN in the construction of infrastructure in various tertiary and secondary schools as well as other interventions around the country.

The regulator also executes intervention activities by providing below market interest rate loans to financial institutions in pursuit of its objective of ensuring financial system stability.

Similarly, the statement showed that the CBN’s personnel expenses increased from N101.41 billion in 2014 to N167.82 billion last year, while currency issuing expenses also increased from N5.51 billion in 2014 to N30.61 billion in 2015.

Reacting to the result, Cyril Onya, an economist, said the era of  transparency has now been fully entrenched at the nation’s apex bank which now prepare it financial statements as at when due which is a departure from the old norms.

His words: “This result is not a bad one if you consider the fact that the nation’s economy is undergoing a rejig. I am particularly happy that the CBN has imbibe the culture of making public its financial performance for Nigerians and to conform with the standard approved by the International Financial Reporting Standards (IFRS)”.

In the words of Rasheed Alao, a lecturer in the Department of Economics with Adeyemi College of Education, the apex bank should look at the huge drop in the fees and commission income which went down from N142.674 billion to N67.638 billion.