Kayode Tokede
On the financial institution of sustained inflation, Ecobank Transnational Incorporated (ETI), Zenith Bank Plc and 7 different monetary establishments working in Nigeria and different Sub-Saharan Africa (SSA) nations declared N2.99 trillion working bills (OPEX) within the half yr ended June 30, 2026.
Analysis of the banks audited/unaudited H1 2026 outcome and accounts confirmed that the N2.99 trillion OPEX is about 7.8 per cent enhance over N2.78 trillion reported in H1 2025.
Despite the rise in OPEX, the banks posted N3.2 trillion revenue earlier than tax in H1 2026, about 19.2 per cent enhance over N2.69 trillion reported in H 2025.
Inflation throughout SSA remained comparatively contained throughout H1 2026 regardless of renewed international worth pressures, supported by prudent financial coverage, easing meals costs, and enhancing trade charge stability in a number of economies.
While inflation accelerated in Ghana to five.2 per cent and edged larger in Nigeria to fifteen.91per cent, reflecting lingering home value pressures, Côte d’Ivoire maintained low inflation at 1.8 per cent, whereas Kenya (4.5 per cent) and Tanzania (4.0 per cent) continued to document average worth development.
Nigeria’s inflation remained on a broad disinflation path throughout H1 2026 regardless of a brief uptick
pushed by larger international power costs following geopolitical tensions within the Middle East. Headline
inflation eased early within the yr earlier than rising to fifteen.93per cent in May and moderating barely to fifteen.91per cent in June 2026.
In response, the Central Bank of Nigeria (CBN), adopted a cautious financial coverage stance, lowering the MPR from 26.50 per cent in February to 23 per cent on the final Monetary Policy Committee assembly (MPC) to comprise inflationary pressures, protect trade charge stability, and anchor inflation expectations.
Further evaluation of the banks’ outcomes and accounts, confirmed that ETI, Zenith Bank and First HoldCo Plc declared the best OPEX by worth, whereas Jaiz Bank posted the best by proportion distinction.
As of H1 2026, ETI reported N856.5 billion OPEX, a 0.34 per cent enhance from N853.65 billion reported in H1 2025.
Zenith Bank declared N633.76 billion OPEX, up by 9 per cent from N581.43 billion in H1 2025. On its half, First Holdco posted N608.09 billion OPEX, representing a rise of practically 10 per cent from N552.83billion in H1 2025.
This was carefully adopted by GTCO that introduced N277.39 billion OPEX in H1 2026, a development of seven.3 per cent from N258.5billion in H1 2025.
GTCO in a presentation said that its OPEX’s 7.3 per cent enhance is with non-controllable prices accounting for 26.6% of complete OPEX.
“The increase was driven largely by higher regulatory charges, depreciation and infrastructure-related costs, as well as continued investment in people and customer service. These pressures were partly mitigated by reductions across technology, marketing and other discretionary expense lines, reflecting continued focus on cost efficiency,” GTCO stated in a presentation to analysts and traders
According to the lender, the key OPEX development drivers was regulatory and statutory costs remained a major factor of the associated fee base, with AMCON bills growing 9.9% to N55.9billion and Deposit Insurance Premium rising 15per cent to N18.0billion.
“The enhance displays the size of the group’s stability sheet and deposit franchise, with these prices largely decided by regulatory and statutory necessities. The group continued to soak up larger infrastructure-related prices, with Depreciation and Amortisation growing 41.8per cent to N54.3billion, whereas Occupancy Costs and Repairs & Maintenance rose 10.2 per cent to N19.8billion. The actions mirror the continued build-out and upkeep of the Group’s bodily and working infrastructure.
“Investment in human capital and repair supply remained a precedence, with Personnel Expenses rising 4.7per cent to N57.0billion and Customer Service Related Expenses growing 98.3 per cent to N2.4billion. The enhance in customer support prices displays continued efforts to strengthen service capability and buyer expertise.
“4.7per cent growth in Personnel expenses (N57.0 billion vs N54.4billion) resulted from the full weight impact of staff promotion and increases in salaries of Core and non-Core employees done to cushion the impact of rising cost of living for employees across the Group’s Banking and non-Banking entities,” GTCO added.
However, Jaiz Bank’s OPEX grew by 44.5 per cent to N26.6 billion in H1 2026 from N18.44 billion in H11 2025 to document the best development by proportion.
Analysts imagine the hike in inflation charge, amongst others, contributed to the businesses’ value of gross sales and OPEX, stressing that its affect affected not solely their sturdy revenue era, however dividend payout on the finish of the yr.
They predicted additional hike in OPEX in 2026, stressing that its affect could minimize down on earnings and dividend payout to shareholders.
Speaking, Vice President, Highcap Securities Limited, Mr. David Adnori stated the hike in value of gross sales and working bills is a mirrored image of world financial unrest, stressing that monetary establishments working in Nigeria and in Africa don’t function in isolation.
He expressed that the expansion in value of gross sales and working bills reported by listed firms would undoubtedly have an effect on revenue and dividend payout to shareholders.
He stated, “The world is currently facing a high inflation rate and Nigeria, Africa at large are not exempted from this experience, with countries on the continent witnessing record high inflation rate. The surge in inflation rate is following the rally in crude oil prices, amidst the face-off between Russia-IUkraine and USA-Israel/ Iran, among other nations.”
“Reacting to the surging inflation rate, regulators of several countries where Nigerian companies operate have also raised their interest rates to curb the rising cost of goods and services. However, this is yet to yield any significant positive as the inflation rate above 30 per cent. With cost impacted, Nigerian companies may suffer slow profitability this year and it might impact on dividend payout,” he added.
