* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Monday, June 9, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Cisco Partners with Monumental Sports & Entertainment to Power New D.C. Arena – Cisco Newsroom

    Cisco Teams Up with Monumental Sports & Entertainment to Revolutionize the New D.C. Arena Experience

    Middle Eastern Entertainment Headlines at 5:49 a.m. GMT – Yahoo

    Exciting Updates from the Middle Eastern Entertainment Scene!

    Ceramic Dalmatian Entertainment is WLAF’s Business of the Week – WLAF

    Spotlight on Success: Ceramic Dalmatian Entertainment Shines as This Week’s Featured Business!

    Brass Lion Entertainment unveils co-op action RPG Wu-Tang: Rise of the Deceiver – VentureBeat

    Unleash Your Inner Warrior: Discover the Co-Op Action RPG Wu-Tang: Rise of the Deceiver!

    Entertainment lineup released for 2025 Mississippi State Fair – WAPT

    Exciting Entertainment Lineup Unveiled for the 2025 Mississippi State Fair!

    After Denzel Washington Said He Would Be In Black Panther 3, Ryan Coogler Explained Why He’s ‘Fine’ With That Information Being Revealed So Early – Yahoo

    Ryan Coogler Shares Why He’s Cool with Denzel Washington’s Black Panther 3 Reveal!

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Technology, Labor Rights, and Political Power in Kenya and Across Africa – Tech Policy Press

    How Technology is Shaping Labor Rights and Political Power Across Africa

    Reeves to Announce £86 Billion for Science and Technology in Spending Review – Bloomberg

    Reeves Set to Unveil Groundbreaking £86 Billion Investment in Science and Technology!

    Innovation at Scale: How P&G Transforms Business Through Technology – Procter & Gamble

    Revolutionizing Business: P&G’s Bold Journey into Technological Innovation

    Drag racer survives frightening airborne crash at World Wide Technology Raceway – FOX 2

    Drag racer survives frightening airborne crash at World Wide Technology Raceway – FOX 2

    Apple Watch and the future of wearable technology in healthcare – MSN

    Revolutionizing Healthcare: The Future of Wearable Technology with Apple Watch

    ECS Professor Pankaj K. Jha Receives NSF Grant to Develop Quantum Technology – Syracuse University News

    Unlocking the Future: ECS Professor Pankaj K. Jha Secures NSF Grant for Groundbreaking Quantum Technology Development

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Cisco Partners with Monumental Sports & Entertainment to Power New D.C. Arena – Cisco Newsroom

    Cisco Teams Up with Monumental Sports & Entertainment to Revolutionize the New D.C. Arena Experience

    Middle Eastern Entertainment Headlines at 5:49 a.m. GMT – Yahoo

    Exciting Updates from the Middle Eastern Entertainment Scene!

    Ceramic Dalmatian Entertainment is WLAF’s Business of the Week – WLAF

    Spotlight on Success: Ceramic Dalmatian Entertainment Shines as This Week’s Featured Business!

    Brass Lion Entertainment unveils co-op action RPG Wu-Tang: Rise of the Deceiver – VentureBeat

    Unleash Your Inner Warrior: Discover the Co-Op Action RPG Wu-Tang: Rise of the Deceiver!

    Entertainment lineup released for 2025 Mississippi State Fair – WAPT

    Exciting Entertainment Lineup Unveiled for the 2025 Mississippi State Fair!

    After Denzel Washington Said He Would Be In Black Panther 3, Ryan Coogler Explained Why He’s ‘Fine’ With That Information Being Revealed So Early – Yahoo

    Ryan Coogler Shares Why He’s Cool with Denzel Washington’s Black Panther 3 Reveal!

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Technology, Labor Rights, and Political Power in Kenya and Across Africa – Tech Policy Press

    How Technology is Shaping Labor Rights and Political Power Across Africa

    Reeves to Announce £86 Billion for Science and Technology in Spending Review – Bloomberg

    Reeves Set to Unveil Groundbreaking £86 Billion Investment in Science and Technology!

    Innovation at Scale: How P&G Transforms Business Through Technology – Procter & Gamble

    Revolutionizing Business: P&G’s Bold Journey into Technological Innovation

    Drag racer survives frightening airborne crash at World Wide Technology Raceway – FOX 2

    Drag racer survives frightening airborne crash at World Wide Technology Raceway – FOX 2

    Apple Watch and the future of wearable technology in healthcare – MSN

    Revolutionizing Healthcare: The Future of Wearable Technology with Apple Watch

    ECS Professor Pankaj K. Jha Receives NSF Grant to Develop Quantum Technology – Syracuse University News

    Unlocking the Future: ECS Professor Pankaj K. Jha Secures NSF Grant for Groundbreaking Quantum Technology Development

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

11 Banks’ Non-performing Loans Hit N1.67trn

October 3, 2023
in Business
11 Banks’ Non-performing Loans Hit N1.67trn
Share on FacebookShare on Twitter

Nigerian Banks, Commercial Banks, Money Deposit BanksNigerian Banks

FIRS

11 Banks’ Non-performing Loans Hit N1.67trn

Following write-offs, restructuring of facilities, Global Standing Instruction (GSI) and credit risk management as a result of economic challenges, a total of 11 banks recorded N1.67 trillion non-performing loans (NPL) during the first half (H1) of 2023, an increase of 37 per cent from N1.22 trillion reported in the full year ended December 31, 2022.

The banks include; Zenith Bank Plc, Access Holdings Plc, Guaranty Trust Bank Holding Plc (GTCO), FBN Holdings Plc Ecobank Transnational Incorporated (ETI), and United Bank for Africa Plc (UBA).

Other are: FCMB Group Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, Sterling Financial Holdings and Fidelity Bank Plc.

In the period under review, the dollar trended weaker from the historic highs witnessed in 2022 sending ripples through currency markets around the world. For most African Countries, currency depreciation contributed to higher inflation and public debt figures as well as a deteriorated loan position.

Central Banks around the world, including Africa continued to hike interest rates in a bid to effectively manage inflation as most of the African economies investigated continued to experience monetary tightening in reaction to persistent inflation.

Economic Confidential analysis of the banks’ results revealed that FCMB Group, Wema Bank and ETI reported NPL ratio above five per cent regulatory requirement of the CBN, while GTCO declared 4.60 per cent NPL ratio in H1 2023 from 5.19 per cent reported in 2022 full year.

According to CBN, the industry NPLs had improved from 5.1 per cent as of June 2022 to 4.1 per cent in June 2023, and was below the five per cent supervisory requirement.

ETI, a an-African financial institution reported 5.5 per cent NPL ratio in H1 2023 from 5.20 per cent in 2022, bringing its NPL by value to N512.12 billion as of June 30, 2023 from N299.7 billion reported in 2022.

ETI’s net loans & advances to customers stood at N9.31 trillion as of June 2023, an increase of 62 per cent from N5.76 trillion in 2022FY.

According to ETI, its NPLs of $612million were one per cent lower Year-on-Year (YoY) (increased 44 per cent at CC), and an NPL ratio of 5.5 per cent.

With about 4.3 per cent NPL ratio and N5.26 trillion gross loans & advances, FBN Holdings reported N226.24 billion NPL in H1 2023 from N204.29billion reported in 2022. FBN Holdings is the second highest financial institution with NPL by value after ETI.

The oldest financial institution declared 5.4 per cent NPL ratio and N3.79 trillion gross loans & advances in the 2022 financial year.

Other Tier-1 financial institutions: Access Holdings, Zenith Bank, UBA and GTCO closed June 2023 with N218.9 billion, N209.86billion, N154.53 billion and N115.29 billion NPL by value respectively.

According to UBA, its asset quality remained strong and resilient, as the total non-credit impaired facilities i e Stages 1& 2 accounted for 96.7 per cent of the Group’s total loan portfolio as of H1 2023 from 96.9 per cent in 2022 financial year.

The lender in a presentation said its NPL remains within regulatory limit, ranging between 3.1 per cent and 3.3 per cent.

“Notwithstanding the moderate NPL ratio, the group’s NPL coverage ratio as of June 2023 stood at 187 per cent. This has remained well over 100 per cent over the period,” UBA added in a presentation to investors/ analysts.

Also, GTCO in its presentation to investors/ analysts explained that, “The Group’s IFRS 9 Stage 3 loans closed at 4.6 per cent (Bank: 3.6per cent) in H1-2023 from 5.2per cent (Bank:4.7 per cent) in 2022. With Individuals and Others emerging as sectors with the highest NPLs i.e., 20.9 per cent and 30.96 per cent respectively.

“IFRS 9 Stage 3 loans grew marginally to N115.3billion in H1-2023 from N102.8billion in 2022, primarily driven by exchange rate impact as the Group continued to deleverage in Ghana and Kenya and carried out derecognition of fully provided facilities in the Nigerian book.”

In addition, FCMB group declared N52.66billion NPL value as of H1 2023 from N45.01billion in 2022, while Wema Bank including its local and foreign NPL by value stood at N33.07 billion as of H1 2023 from N32.77 billion reported in 2022.

FCMB group NPL ratio stood at 5.20per cent as of Junne 30, 2023 from 6.60 per cent in 2022, above the regulatory requirement.

In the same vein, Wema bank declared 5.12 per cent NPL as of June 30, 2023 from 6.08 per cent reported in 2022.

“Reduction of 0.96 per cent in NPL ratio driven by improvements in loan management tactics. Reduction in NPLs across some sectors including general commerce, transport & storage, and manufacturing sectors, ”said Wema bank in a presentation.

The Chief Risk Officer, Wema Bank, Sylvanus Eneche said the lender is cautious and taken some steps in mitigating raising NPL.

According to him, “We’ve taken some very proactive steps. In sectors where we see some challenges, and in some of those cases, for instance, some portion of our commercial businesses that we see that there is going to be significant challenge. We’ve taken a very proactive step of recognizing that there’s some significant impairment. But then again, I would say that you would notice that the value of our aggregate NPLs has not moved much. And that’s simply because we have had some good recoveries.

“Again, this year, there was the initial lull in business as a result of the elections and of course, as a result of the Naira redesign. But I believe that business has actually rebounded much faster than we expected after the elections. And of course, some of the issues that we have expected on the basis of our worst case scenario, stress testing have not come to pass. So, we expect that you continue to see that our coverage ratio continues to improve.”

Meanwhile, banks in the country have continued to write off non-performing loans. This came as lenders also continued to debit the bank accounts of recalcitrant debtors in other to reduce the volume of non-performing loans.

The former Deputy Governor, at the CBN, Obiora Kingsley who corroborated this in a statement during the July Monetary Policy Committee (MPC) meeting said, the continuous decline in NPL was attributable to write-offs, restructuring of facilities, Global Standing Instruction (GSI) and sound credit risk management.

According to him, “Total assets of the banking industry grew by N30.92 trillion or 47.21 per cent between June 2022 and June 2023, largely driven by the effects of new FX policy.

“As a result, total gross credit increased by N10.75 trillion or 39.73 per cent between the end of June 2022 and the end of June 2023 due to the increase in the industry funding base, the CBN’s directive on Loan-to-Deposit Ratio (LDR), business strategy and competition, and changes in valuation of FX denominated loans due to operational changes in the FX market. The credit growth was largely recorded in oil and gas, manufacturing, general commerce, and government.”

happy new month

blogger outreachs ervice

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : EconomicConfidential – https://economicconfidential.com/2023/10/banks-loans-hit/?utm_source=rss&utm_medium=rss&utm_campaign=banks-loans-hit

Tags: banksbusinessNon-performing
Previous Post

Japan closes Asian Games Triathlon competition with Mixed Relay gold

Next Post

How Increased Exports Will Strengthen Naira – NEPC Boss

Coco Gauff Makes Request After French Open – Yahoo Sports

Coco Gauff’s Surprising Request Following French Open Exit

June 9, 2025
Alcaraz tops Sinner in a French Open final for the ages – Yahoo Sports

Alcaraz tops Sinner in a French Open final for the ages – Yahoo Sports

June 9, 2025

Ecology expands Washington state’s drought emergency – Columbia Basin Herald

June 9, 2025
Jane Goodall: ‘We must let local wisdom and science be ou… – observer.co.uk

Jane Goodall: ‘We must let local wisdom and science be ou… – observer.co.uk

June 9, 2025
Nanowires replace lost retinal cells – Science | AAAS

Nanowires Spark Breakthrough in Restoring Lost Retinal Cells and Vision

June 9, 2025
Cancer Daily Horoscope Today (June 21 – July 22) June 9, 2025: Lifestyle will improve! – India Today

Cancer Daily Horoscope for June 9, 2025: Get Ready for Exciting Lifestyle Changes!

June 9, 2025
Luka Mijatovic on Qualifying for World Champs: “I didn’t want to put any pressure on myself” – SwimSwam

Luka Mijatovic Opens Up on His World Championships Qualifying: “I Didn’t Want to Put Any Pressure on Myself

June 9, 2025
North America Creator Economy Market Size | CAGR of 19% – Market.us

North America’s Creator Economy Poised for Explosive 19% Growth

June 9, 2025

Three Trailblazing Women Celebrate Victory with Prestigious Frank Prize in Performing Arts

June 9, 2025

Hospice Workers Unite to Transform Care at University of Vermont Health Network

June 9, 2025

Categories

Archives

June 2025
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
30 
« May    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (678)
  • Economy (692)
  • Entertainment (21,597)
  • General (15,292)
  • Health (9,734)
  • Lifestyle (696)
  • News (22,149)
  • People (693)
  • Politics (699)
  • Science (15,911)
  • Sports (21,195)
  • Technology (15,678)
  • World (677)

Recent News

Coco Gauff Makes Request After French Open – Yahoo Sports

Coco Gauff’s Surprising Request Following French Open Exit

June 9, 2025
Alcaraz tops Sinner in a French Open final for the ages – Yahoo Sports

Alcaraz tops Sinner in a French Open final for the ages – Yahoo Sports

June 9, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version