Thursday, May 30, 2024

Money Banks Expand Loans Size to N37.2trn

Amidst tight monetary policy and economic contractions, loan portfolio of leading Deposit Money Banks in Nigeria expanded by 57 percent to N37.17 trillion in 2023 against N23.68 trillion recorded in 2022.

The large credit growth was driven by Access Bank, Zenith Bank, First Bank, Guaranty Trust, United Bank for Africa (UBA) Plc, Fidelity Bank, GT Bank, Stanbic IBTC, Sterling Bank, Wema Bank and FCMB.

Details of the loan books showed that tier-1 banks dominated the combined portfolio recording the highest value and growth rate.

Access Bank recorded the largest loan portfolio with N8.04 trillion, while Zenith Bank grew its portfolio to N6.56 trillion, and First Bank increased to N6.36 trillion.

United Bank for Africa (UBA) Plc increased its loan book to N5.23 trillion, while a tier-2 bank, Fidelity Bank Plc, broke into the big five bracket with N3.09trillion loan size forcing GT Bank into sixth position with N2.48trillion.

Also another tier-2 bank, Stanbic IBTC Bank, led the industry growth rate with a 68.6 percent increase in its loan book to N2.03 trillion in 2023, followed closely by a tier-1 bank, First Bank, with 68 percent increase and UBA placing third in growth rate recording 66.7 percent.

The reforms including the removal of the petrol subsidy, exchange rate harmonisation, tax reforms and restoration of a methodological framework for calculating the cash reserve requirements (CRR) provide growth opportunities for the Industry.

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