KEY POINTS

• CBN reversed its 2023 loss with strong foreign exchange gains.

• Operating income surged from N5.9 trillion to N15.1 trillion.

• The profit signals renewed financial confidence in the apex bank.

Following a N1.15 trillion loss in 2024, the Central Bank of Nigeria posted an after-tax profit of N38.8 billion.

CBN turns profit after reporting major 2023 financial loss

In its full-year financial statement, which was formally made public earlier today, the apex bank disclosed the profit.

According to CBN, the increase in interest revenue and other operating income from its financial activities in 2024 was the primary cause of the profit reversal.

The bank’s net unrealized foreign exchange gains of N11.28 trillion represented a 225 percent rise over 2022 performance figures.

The report claims that the foreign currency gain made a substantial contribution to the financial year’s improved revenue and operating results.

The overall operational income of the apex bank increased significantly from N5.9 trillion in 2023 to N15.1 trillion in 2024.

CBN profit recovery shows confidence in economic policy measures

A better-managed exchange rate control framework and a more favorable macroeconomic environment were credited by CBN as contributing to the increase.

It claimed that throughout the year, its position was strengthened by significant remittance inflows, foreign capital infusions, and currency market reforms.

To cut losses and stabilize monetary performance, CBN also optimized reserve utilization and restructured parts of its asset holdings.

Additionally, the central bank enacted internal changes and stricter cost controls to increase operating efficiency, transparency, and compliance.

The outcome, according to analysts, indicates that the apex bank, which was heavily criticized for its financial performance the year before, is on the mend.

Market watchers point out that if CBN can recover from such a historic setback, investor and institutional trust in its policies may be restored.

According to Business day, due to currency market volatility and valuation losses, the 2023 fiscal year was among the worst in the institution’s history.

According to CBN, it would keep concentrating on strategic reforms that promote investor confidence, inflation control, and the stability of the financial system in the future.

It further stated that the state of the world economy, the stability of domestic policies, and the efficacy of sector-specific regulations will all have a significant impact on future performance.