The mixed mortgage portfolio of 12 industrial banks in Nigeria rose by N690bn within the first three months of this yr, information collated from their unaudited monetary statements present.
The loans and advances to their prospects grew to N17.75tn as of March 31, 2021 from N17.06tn on the finish of December final yr.
Loans and advances to prospects, which account for the main proportion of the banks’ complete belongings, rose in 11 of the lenders.
Nigerian banks’ mortgage books have grown lately on the again of the Central Financial institution of Nigeria’s push for extra lending.
The CBN had in July 2019 mandated all Deposit Cash Banks to keep up a minimal loan-to-deposit ratio of 60 per cent by September 30, 2019 in a bid to enhance lending to the actual sector.
The minimal LDR was in October 2019 reviewed to 65 per cent.
Entry Financial institution Plc expanded its mortgage e book to N3.26tn on the finish of March 2021 from N3.22tn in December 2020 whereas that of Zenith Financial institution Plc grew to N2.84tn from N2.78tn.
The United Financial institution for Africa Plc elevated its loans and advances to prospects to N2.73tn as of March 31 from N2.55tn in December 2020.
FBN Holdings Plc, the holding firm of First Financial institution of Nigeria Restricted, grew its mortgage e book to N2.30tn on the finish of March from N2.22tn in December whereas that of Warranty Belief Financial institution shrank to N1.64tn from N1.66tn.
Constancy Financial institution Plc expanded its mortgage e book to N1.43tn on the finish of the primary quarter of this yr from N1.33tn in December whereas that of FCMB Group Plc grew to N886.09bn from N822.77bn.
The mortgage portfolio of Stanbic IBTC Holdings Plc rose to N730.14bn as of March 31 from N625.14bn in December whereas that of Union Financial institution of Nigeria Plc elevated to N712.58bn from N692.80bn.
Sterling Financial institution Plc elevated its loans and advances to prospects to N632.48bn in March from N596.83bn in December.
Wema Financial institution of Nigeria grew its mortgage e book to N367.69bn in March from N360.08bn in December whereas that of Unity Financial institution Plc expanded to N223.22bn from N202.08bn.
The Financial Coverage Committee of the CBN mentioned in March that provisional information confirmed that banking system credit score to the economic system elevated by 1.75 per cent to N43.67tn in February 2021 from N42.92tn in January 2021, reflecting the continuing broad-based financial and monetary stimulus to numerous sectors of the economic system.
A world credit standing company, Moody’s Traders Service, mentioned in a current report that Nigerian banks’ mortgage high quality would weaken in 2021 as coronavirus assist measures carried out by the federal government and the central financial institution final yr, together with the mortgage reimbursement vacation, are unwound.
In line with the report, the banks face greater asset high quality dangers as coronavirus assist measures are withdrawn amid giant single-name and sectoral concentrations and as banks maintain a big quantity of international forex loans.
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