Following the low-interest yield environment,
The other banks are:
THISDAY can report that the above seven banks reported a sum of N305.15billion interest income from investing in T-Bills and government bonds in H1 2021 as against N346.5billion in H1 2020.
Analysts have expressed that the low-yield on government securities impacted on banks interest generated from T-Bills and bonds, maintaining that banks might recouped lost interest income on securities in the second half of 2021.
The Head,
According to him: "Upon maturity, most banks are reinvesting in government securities at a lower rate. Mind you this year, banks haven't had major opportunity in making money from government securities. A lot of banks lot money and you can see it from their classification. Some of the banks have to move their value for sale to held to maturity."
Analysis of the banks results showed that
The breakdown revealed that interest income generated from T-bills dropped by 29 per cent to N20.3billion in H1 2021 from N28.38billion in H1 2020, while interest income from government and other bonds inched up marginally by five per cent to N41.58billion in H1 2021 from N39.52billion in H1 2020.
This brings the bank's total interest income for the period to N203.9billion, a decline of six per cent from N216.95billion in H1 2020.
On its part,
As
In addition, UBA reported 3.3 per cent increase in interest income generated from investment securities to N84.93billion in H1 2021 from N82.19billion in H1 2020.
Analyst at
He noted that yield is expected to bounce back in the second half of 2021.
After hitting a four-year low of near-zero percent in 2020, yields on the federal government risk-free T-bills climbed to more than 13 months high in
According to the T-bills auction result for
The stop rates for the 91-day and 182-day bills stayed flat but the 364-day bill increased by 100 basis points compared to the result of the previous auction.
From a yield record low level of 4.05 per cent in
The recent rise in the yield on government instrument is cheering news for domestic investors who for almost two years had a return that was much lower than
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