6 Banks Generate N891.14bn from Customers Loans

Nume Ekeghe

Following the increase in Central Bank of Nigeria (CBN)’s Monetary Policy Rate (MPR) to 18.5 per cent, a total of six banks generated N891.1billion from loan and advances to customers in first half ended June 30, 2023.

This is an increase of 47.14 per cent from N605.63 reported by the six banks in H1 2022.

The six banks are FBN Holdings Plc, Ecobank Transnational Incorporated (ETI), FCMB Group Plc, Fidelity Bank Plc, Sterling Financial Holdings Company Plc and Wema Bank Plc.

The six banks declared N18.98 trillion loan to customers as of June 30, 2023 from N13.43 trillion reported in 2022 financial year.

Access Holdings Plc, United Bank of Nigeria Plc, Guaranty Trust Holding Plc, Zenith Bank Plc, among others have not released half year ended June 30, 2023 to investing public.

MPR has increased by 5.5 percentage points   Year-on-Year (Yoy) from 13 per cent in June 2022 to 18.5per cent June 2023.

The Monetary policy Committee of the CBN had further increase MPR to 18.75 per cent in a move to tackle rising inflation rate.

With the increase in MPR, average lending rate in the banking sector increased to 28.94 per cent as of June 2023 from 27.61per cent reported in June 2022.

The breakdown of the N891.1billion loan and advances to customers showed that ETI generated N246billion from loan and advances to customers in H1 2023, 46 per cent from N168.72billion in H1 2022, while FBN Holdings reported N254.99billion loan and advances from customers in H1 2023, a growth of 53.3 per cent from N166.32billion in H1 2022.

Fidelity Bank reported N164.04 billion loan and advances from customers in H1 2023, an increase of 56 per cent from N104.84billion in H1 2022, as FCMB group declared N114.41 billion loan and advances from customers in H1 2023, 45.3 per cent growth from N78.75 billion reported in H1 2022.

FCMB Group grew its loan book by 37 per cent YoY to N1.5 trillion with loans to Manufacturing, Agriculture and Oil & Gas sectors contributing the highest to loan book growth.

Furthermore, Sterling Financial Holdings Company declared N58.18billion loan advances to customers in H1 2023, 23 per cent from N47.04billion in H1 2022. 

In addition, Wema bank reported N53.5 billion loan and advances to customers in H1 2023, a growth of 34 per cent from N39.97billion in H1 2022.

FCMB Group had leveraged on digital lending to increase its loans in the period and boost its profit. 

The Chief Financial Officer – FCMB Group, Mr. Deji Fayose during the group’s investors presentation said, N22.6 billion was generated from digital payments, lending activities and wealth management in H1 2023, a 31per cent growth from H1 2022.

According to him, digital revenues accounted for nine per cent of gross earnings for H1 2023 driven by lending and payments.

He disclosed that over N123 billion disbursed to 771,622 customers as at H1 2023, stressing that digital lending now accounts for 65 per cent of digital revenues.