In 2011, Nigeria's banks were still recovering from their 2009 crisis and their pre-tax profits were relatively low compared to those of other African banks. The country had the fourth largest banking industry in Africa with $112.5bn in assets at the end of 2011, but its banks only ranked eighth in the region in terms of pre-tax profits. In the same year, Angolan lenders recorded aggregate pre-tax profits of $1.4bn, more than double that of their Nigerian counterparts, despite having less than half the total assets.
But, there are signs that results from 2012 will tell a more positive story; most of Nigeria's institutions have made a full recovery from the 2009 crisis and are expected to post strong returns. Bolaji Balogun, managing partner of Chapel Hill Denham, a local advisory firm, says it is feasible that eight or nine Nigerian banks will announce pre-tax earnings of more than $100m for 2012, while three could pass the $500m mark. But, it is not all good news for the country's banking sector as Paul Wallace reports in the story Tough year looms for Nigeria's rejuvenated banks.
