Nigeria’s central bank reports 33% decline in net income for FY2017

By Adesola Afolabi

The Central Bank of Nigeria (CBN) has released its audited financial statements for the year ended 31st December 2017 showing net income for the bank depreciated 33 percent from N104.9 billion recorded in the same period of 2016 to N70.2 billion.

Although the results released Thursday, August 16th 2018 indicated that gross revenue was N2.2 billion, compared with N1.7 billion in 2016, net operating income fell by almost 39 percent.

“At N400.46 billion, net operating income showed a 38.8 percent decrease below the N654.87 recorded in 2016,” the bank noted.

Adding that the decrease in net operating income was as a result of fair value loss on financial instruments.

“The fair value loss thereby brought about a reduction of the net income for 2017 to N70.17 billion, compared with N104.93 in 2016.

In line with the provisions of the Fiscal Responsibility Act 2011, 20.0 percent of the net income will be credited to retained earnings (reserves), while the balance will be paid to the Federal Government.”

On the apex’s bank balance sheet, the CBN noted, “…balance sheet expanded further in 2017 as total assets/ liabilities increased by 35.0 percent to N29.31 trillion.

The increase in assets resulted mainly from external reserves, loans and receivables, holdings of SDR and Quota in the IMF.

The corresponding increase on the liability side resulted mainly from increased CBN issued instruments, increased IMF and other liabilities.”