The PUNCH analysis of their latest financial statements revealed that the top-tier performance of leading financial institutions like Zenith Bank, Access Bank, Guaranty Trust Holding Company, Stanbic IBTC, First Bank, Sterling Bank, Wema Bank, and First City Monument Bank highlights their ability to benefit from higher lending rates and strategic expansion of interest-generating assets.

However, while the financial sector reaps significant profits, manufacturers are contending with rising interest rates and expensive financing.

This is because when interest rates rise, banks can charge a higher rate on their variable-rate loans and a higher rate on their new fixed-rate loans hence earning more interest income, but when rates fall, banks are at risk as interest income declines.

The amount spent on loan repayments during this period is reflective of the high interest-rate operating environment, with the country’s benchmark rate at a whopping 26.75 per cent.

In recent months, the CBN’s MPC under Olayemi Cardoso has maintained a tightening stance on monetary policy, raising the MPR to combat rising inflation.

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