Financial Performance Highlights
Overview Operating Environment Financial Review Guidance
Net Interest Margin Analysis
Avg. Yield on Earnings Assets
11.5%
9.4%
6.4%
5.3%
H1 2020
H1 2021
Avg. Funding Cost
H1 2020
H1 2021
4.3%
3.2%
H1 2020
H1 2021
NIM dropped to 5.3% from 6.4% in H1 2020
(2020FY: 6.3%) as the decline in average
yield on earnings assets surpassed improved
average funding cost in H1 2021.
Drop in average yield on earning assets was
due to a combination of lower yields on
liquid assets and marginal drop in average
lending rates.
Avg. lending rate is gradually ticking
up which now stood at 11.5% in Q2
from 10.0% in Q1.
The decline in avg. funding cost was caused
by both improved avg. cost of deposits and
the refinancing of 5yr N30bn Tier II Bonds.
➤ Avg. cost of deposits dropped by
135bps to 2.7% while the avg.
borrowing cost declined by 29bps to
4.9%.
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