Fitch: Pressure for Nigeria banks

Fitch Ratings said in a recent report that it expects Nigerian banks' earnings to remain under pressure in 2010 due to a continued challenging operating environment.

The financial performance of most Nigerian banks was significantly affected during the financial period ended September 2009 by the weaker operating environment and the Central Bank of Nigeria's special examination process, which required banks to reclassify a significant proportion of loans as non-performing and to raise appropriate provisions in line with their findings, Fitch said.

The agency also said it expects that asset quality will continue to weaken as loan books season after several years of rapid credit growth. This could translate into further impairment charges, Fitch added.

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