Nine Banks Report N2.99tn Operating Expenses on Inflation, Regulatory Charges

Nine major banks in Nigeria and other Sub-Saharan African countries reported N2.99 trillion operating expenses (OPEX) for the half year ended June 30, 2026, representing a 7.8 per cent increase from the N2.78 trillion reported in the same period last year. Despite the rise in OPEX, the banks posted N3.2 trillion profit before tax, a 19.2 per cent increase from N2.69 trillion in the previous half.

Inflation in Sub-Saharan Africa remained relatively contained throughout the period, supported by prudent monetary policy, easing food prices, and improving exchange rate stability. However, Nigeria's inflation rose to 15.91 per cent in June from 15.93 per cent in May. The Central Bank of Nigeria (CBN) responded to the inflationary pressures by reducing the monetary policy rate (MPR) from 26.50 per cent in February to 23 per cent in the latest meeting.

Among the reported banks, ETI, Zenith Bank, and First HoldCo Plc had the highest OPEX values, while Jaiz Bank had the highest percentage growth. The increase in OPEX was largely due to higher regulatory charges, depreciation, infrastructure-related costs, and increased investment in human capital and customer service.