According to a Bloomberg report, Nigerian banks may start losing money from the next quarter following the protracted forex issues in the country.
While other sectors have been hit by a substantial loss in income and profit, banks had been faring okay.
According to the report, it is believed that some of the banks benefited from the last naira devaluation because they had more dollar-denominated assets than liabilities, allowing them to book gains, said Ronak Gadhia, an equity analyst at London-based Exotix Partners LLP.
The analyst said the last part of the year would be tougher, especially if the country continues to hold the naira, he added. “I think we’ll see a weaker quarter for the banks,” he said.
“It seems that after making positive moves on the currency in June, the central bank has gone back on that, so the revaluation gains probably won’t recur in the fourth quarter,’’ said Gadhia.
