Banks’ bad loans hit N478bn amid economic downturn

At least four banks recorded N478bn non-performing loans during the first half of this year, according to their financial results

Specifically, Guaranty Trust Bank Holding Plc (GTCO), FBN Holdings Plc and two other banks reported N478.93bn non-performing loans by value in the half-year ended June 2023, an increase of nearly 16 per cent from N413.36bn reported in the full year ended December 31, 2022.

The other two banks are FCMB Group Plc and Fidelity Bank Plc.

With about 4.3 per cent NPL ratio and N5.26trn gross loans & advances, FBN Holdings reported N226.24bn NPL by value in H1 2023 from N204.29bn reported in 2022.

The holdings declared 5.4 per cent NPL ratio and N3.79trn gross loans & advances in the 2022 financial year.

GTCO declared N115.29bn NPL by value as of   H1 2023 from N102.37bn reported in the 2022  financial  year.

GTCO in its presentation to investors and analysts said, “The Group’s IFRS 9 Stage 3 loans closed at 4.6 per cent (Bank: 3.6per cent) in H1-2023 from 5.2per cent (Bank:4.7 per cent) in 2022. With Individuals and Others emerging as sectors with the highest NPLs i.e., 20.9 per cent and 30.96 per cent respectively.