The Central Bank of Nigeria has released its long-awaited audited accounts for the year ended, December 2022, showing that it made a profit after tax of N103.8 billion up from N75.1billion reported a year earlier.
The results, which are published on the website of the apex bank, included audited results for 2016, 2017, 2018, 2019, 2020 and 2021.
The apex bank’s results also showed that it reported a profit-after-tax every year for the last eight years consecutively.
Until now, the results have been withheld from the public under Godwin Emefiele. The latest result, which was signed by Godwin Emefiele and audited by EY and KPMG showed that the apex bank relied on a combination of higher interest income, fees and commissions to remain profitable.
A breakdown analysis of the results shows the apex bank earned a net interest income of N1.8 trillion compared to N1 trillion a year earlier, representing an 80 per cent surge in net interest income.
Net operating income was N1.2trn compared to N1.1trn in the same period in 2021. Total operating expenses also rose from N1.1trn in 2021 compared to N1.2trn in 2022.
A major source of interest income was from loans and advances in the form of overdrafts given to the federal government. The loans, totaling N23trn and also known as “Ways and Means,” generated an interest of N1.9trn for the apex bank compared to N1.2trn in the prior year.
The apex bank’s results also showed that it earned an additional N247bn and N156bn from AMCON and via FGN Securities respectively.
The apex bank also reported another N422.7bn in income derived from “debt instruments measured at fair value through profit and loss (FVTL).”
FVTL is a way companies account for certain investments they own. Instead of noting the investment’s original cost, the company regularly updates the investment’s value to reflect its current market price.
This method ensures that the financial statements reflect the most up-to-date value of the investment.
Another major income source was N104.5bn income earned from commissions from the sale of foreign currency and other related transactions.
The CBN also earned N15.9bn from processing currency, Bureau de Change application and registration, commission on fund transfers and other banks and financial institutions’ application and licensing fees.
Expenses on forex and loan impairments
A key feature of the expenses was N888.3bn incurred by the apex bank as “other operating expenses” during the year (N884.2bn in 2021).