Banks Loan Portfolio Rises by 44.2% to N32.47 trn
Leading Deposit Money Banks priced quote in the Nigerian Exchange Limited (NGX) have actually grown their loan portfolio by 44.23 percent in the 9 months ended September 30, 2023.
The banks consist of: Zenith Bank Plc, FBN Holdings Plc, Access Bank Plc, Guaranty Trust Holding Company (GTCo) Plc, United Bank for Africa (UBA) Plc, Stanbic IBTC Holdings Plc, Fidelity Bank Plc, Sterling Bank Plc, Wema Bank Plc, and FCMB Group Plc.
Particularly, the banks grew their loan books to N32.47 trillion from N22.51 trillion in the matching duration in 2022.
Analysis of the banks’ loan position for the duration revealed that tier-1 banks taped the most significant both in portion and real worth terms.
United Bank for Africa led with a 62 percent development in its loan book to N4.94 trillion from N3.05 trillion in the matching duration in 2022, followed by a tier-2 bank– Stanbic IBTC– with a 55.5 percent boost to N1.763 trillion from N1.134 trillion in the 9 month duration in 2022.
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Zenith Bank Plc ranked 3rd, growing its loan book by 49 percent to N5.78 trillion from N3.88 trillion in 2022; FBN Holdings Plc positioned 4th with a 48.5 percent boost to N5.35 trillion from N3.6 trillion, while Access Bank Plc grew its loan book to N6.702 trillion from N3.62 trillion, representing a 45 percent boost.
Others are Wema Bank, which taped a 43.4 percent boost to N661 billion from N461 billion; FCMB Group Plc up 34.2% to N1.59 billion; Unity Bank increased by 33.2% to N2.65 trillion; GTCo Plc up 20.4% to N2.22 trillion and Sterling Bank Plc with 9.3 percent boost to N819 billion.
Talking about the substantial boost in the banks’ loan portfolio, David Adonri, Vice Chairman, Highcap securities, associated it to the devaluation in Naira, which he stated might have necessitated increased obtaining by importers to fulfill their import costs.
He stated: “I believe that the majority of the loans chose public loaning as the banks are the greatest loan providers to the federal government either through their financial investment in public financial obligation or direct loans. Once again, due to devaluation of the Naira, numerous importers might likewise have actually increased obtaining to fulfill their import expenses.
“The outlook for banks is appealing thinking about the substantial monetary take advantage of they got from the current forex (forex) windfall. They have adequate war chest to increase their danger possessions.”