NDIC Quarterly Vol. 35 No. 12 2020 Article Financial Condition and Performance of Deposit Money Banks in Q1 and Q2 2020


2.0 Structure of Assets and Liabilities 37; 3.0 Financial Condition of DMBs 39; 4.0 Conclusion 44;

The Banking Industry’s financial conditions showed an impressive resilience in the first half of the 2020, despite negative impacts of the COVID-19 Pandemic on the economy. Though the financial performance indicators declined in Q1 2020, most rebounded in Q2 2020, demonstrating inherent resilience and responsiveness to regulatory policies. Financial performance indicators like Profit Before Tax (PBT) and Return on Equity (ROE) increased in Q2 2020. Asset quality consistently improved with increase in the capital adequacy ratios in Q1 and Q2 2020 and a decline in the non-performing loan ratio in Q2 2020.