Questions are mounting over Alpha Morgan Bank’s N1.9bn profit claim as new lender reports record earnings in 10 months.
NewsOnline Nigeria reports that Alpha Morgan Bank’s claim of generating N1.9 billion in Profit Before Tax (PBT) within just 10 months of commencing operations has sparked scrutiny among industry observers, with analysts questioning the sustainability and transparency of the lender’s rapid rise in Nigeria’s banking sector.
The bank, which officially began operations in March 2025, recently announced what it described as a historic financial performance, reporting more than N103 billion in customer deposits, N13.1 billion in gross earnings, a net interest margin of 67 per cent, and a non-performing loan (NPL) ratio of zero.
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While the figures suggest an impressive start for the new lender, financial analysts have raised concerns over the limited information provided regarding the bank’s loan portfolio, risk exposure, and the drivers behind its unusually strong profitability within such a short period.
Particular attention has focused on the bank’s reported zero per cent NPL ratio, a claim some experts consider uncommon in Nigeria’s challenging economic environment, especially for a newly established institution expanding aggressively in a highly competitive market.
Although Alpha Morgan Bank attributed its performance to strong customer acquisition, rapid branch expansion, growth in demand deposits, and the creation of quality risk assets, the lender did not disclose detailed information on the size of its loan book, sectoral lending distribution, or independent assessments of its risk management framework.
The bank also highlighted its regulatory approval to commence operations with 14 branches nationwide, which it said accelerated its market penetration strategy. However, industry stakeholders note that rapid branch expansion often comes with significant operational costs and long-term profitability pressures that may not be immediately visible in early financial reports.
Speaking on the results, Managing Director Ade Buraimo described the performance as evidence of the strength of the bank’s business model and execution strategy, maintaining that the institution has successfully combined rapid growth with operational efficiency.
Despite management’s optimistic outlook, analysts say investors, regulators, and stakeholders will continue to monitor the bank’s performance closely to assess whether it can sustain earnings growth, maintain asset quality, and withstand economic headwinds as competition intensifies within the banking industry.
The development comes at a time when Nigerian banks are grappling with stricter regulatory oversight, rising operating expenses, inflationary pressures, and ongoing recapitalisation requirements, factors that could test the resilience of newer entrants seeking to establish a foothold in the sector.
