CBN Balance Sheet Expands to N58trn

CBN Balance Sheet Expands to N58trn

Amidst an ongoing investigation of Godwin Emefiele, suspended governor of the Central Bank of Nigeria, the apex bank’s latest financial statement shows that the balance sheet size has expanded to about N58 trillion.

In its 2022 financial statement published last week, the group profits for the year printed at N103. 854 billion. The profit record came 20% above N75.125 billion in the comparable period in 2021.

This was spurred by a significant increase in the group net interest income following monetary policy rate repricing that started in the year.

CBN said it charged the Federal Government N1.9 trillion on an overdraft facility in 2022 compared to N1.2 trillion interest payment from the authority in 2021 at an interest rate of MPR+3%.

Fees, commission, and foreign exchange earnings rose by about 3 times to about N120.582 billion from N41.978 billion in the corresponding year. In the audited report, CBN explained that foreign exchange earnings represent commission income from the sale of foreign currency and other related transactions.

Also, fees and commissions represent income from processing currency, Bureau de Change application and registration, commission on fund transfers, and other banks and financial institutions’ application and licensing fees.

In addition to that, CBN’s profit was boosted by the group’s share of profit of equity accounted investee’s net of tax. – Up 24.77% from N38.022 billion to N47.349 billion.

CBN currency issues expenses increased sharply in 2022 following a failed demonetisation plan that spooked the economy in the first quarter of 2023. CBN’s audited report showed that currency expenses grew 94.66% year on year to N29.647 billion from N15.23 billion.

In line with the provisions of the Fiscal Responsibility Act 2011, 20% of the Net Income of the Bank will be credited to retained earnings while the balance will be paid to the Federal Government of Nigeria.

The Group entered into a securities lending agreement with Goldman Sachs and J.P. Morgan. As part of the agreement, the Group received cash in exchange for its securities to be held as collateral for the loan. J.P. Morgan being the global custodian of the securities of the Group holds an equivalent in securities of, of value of a loan given in cash.

The cash received from Goldman Sachs was N0.23 trillion or $500 million compared with N0.22 trillion or $500 million in 2021 and JPMorgan N3.23 trillion or $7 billion as against N3.05 trillion ($7 billion) that was recognised in other foreign securities. #CBN Balance Sheet Expands to N58trn Nigerian Treasury Bills Yield Rises to 7%