H1: Six Banks Extended N8.87tn Loans Despite Economic Challenges

Nume Ekeghe

Despite macroeconomic challenges in the country, a total of six prominent banks operating in Nigeria disbursed loans totalling N8.87 trillion in the first half of 2023, culminating on June 30, 2023.

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

Their total loans to customers amounted to N31.87 trillion by the close of June 30, 2023, compared to N22.99 trillion at the end of the 2022 fiscal year.

This signifies a notable increase of N8.87 trillion or 38.6 per cent in loans to customers during H1 2023.

Further analysis indicates that ETI’s loans to customers surged from N5.07 trillion at the close of 2022 to N8.03 trillion during H1 2023, reflecting a substantial grant of N2.96 trillion in loans.

Access Holdings followed suit, recording approximately N1.61 trillion in loans granted to customers as of June 30, 2023, with a balance of N6.71 trillion, up from N5.1 trillion reported at the end of December 31, 2022.

UBA extended loans amounting to N1.36 trillion to customers during the same period, with a net loans figure of N4.5 trillion on June 30, 2023, compared to N3.14 trillion in 2022.

Zenith Bank reported N5.05 trillion in loans to customers as of June 30, 2023, up from N4.01 trillion in 2022, signifying a disbursement of N1.04 trillion in loans during this period. The bank attributed this growth to the revaluation of foreign currency-denominated loans and an expansion in local currency loans.

FBN Holdings granted N1.47 trillion in loans to customers, and its net loans to customers amounted to N5.26 trillion, up from N3.79 trillion in the 2022 full financial year.

The Group Managing Director of FBN Holdings, Nnamdi Okonkwo expressed confidence in the institution’s ability to navigate successfully. He emphasised their commitment to customer-centric innovations and digital capabilities to enhance operational efficiency.

GTCO extended N429.55 billion in loans to customers, and its net loans reached N2.32 trillion as of June 30, 2023, up from N1.89 trillion in the 2022 full financial year.

GTCO highlighted its well-distributed loan book and focused attention on asset quality across select business segments.

The bank also noted changes in the oil and gas sector’s contribution to the gross loan portfolio, influenced by exchange rate movements.

The Group reported growth in retail loans and a significant proportion of USD-denominated exposures in the oil and gas sector, which are subject to exchange rate volatility. Restructured loans also increased, primarily due to the Naira devaluation.

It is essential to highlight that 92 per cent of the restructured loans relate to two obligors, and all restructured loans have been appropriately classified as Stage 2 Facilities.