504 Views

See The List Of Banks That Lost N17Bn In 3 Months

The slowdown in the economy, which has led to a high rate of non-performing loans in the banking system, made four banks to lose at least N17bn in profits in the first quarter of this year, results of the financial institutions posted on the website of the Nigerian Stock Exchange have shown.

Specifically, Ecobank Transnational Incorporated, Guaranty Trust Bank Plc, Unity Bank Plc and Diamond Bank Plc recorded a combined decline of N17bn in their profits before tax for the three months ended March 31, 2016, when compared with the corresponding period of 2015.

According to the 2016 first quarter unaudited financial results filed with the NSE, Ecobank, GTB, Unity Bank and Diamond Bank recorded profit before tax of N20.63bn, N30.68bn, N1.05bn and N6.04bn, respectively.

When compared with the PBT of N30.52bn, N32.65bn, N4.26bn and N7.94bn recorded by the banks in the first quarter of 2015, the combined PBT of the four banks dropped by N17bn from N75.4bn in the first quarter of last year to 58.4bn in the same period in 2016.

While Ecobank’s PBT fell from N30.52bn in the first quarter of 2015 to N20.63bn in a similar period of this year, GTBank’s dropped from N32.65bn to N30.68bn. That of Unity Bank dropped from N4.26bn to N1.05bn, while Diamond Bank’s came down from N7.94bn to N6.04bn.

In terms of their profit after tax, the four banks recorded a decline of N14bn.

Nigerian banks had been posting sharp increases in profits before tax and profits after tax since 2011 after the establishment of the Asset Management of Corporation of Nigeria in 2010 following the banking sector crisis in 2009.

However, consistent drop in the global prices of crude oil, Nigeria’s main foreign exchange earner, since June 2014, caused banks’ profit to start declining at the end of 2015.

Majority of the 15 banks listed on the NSE recorded decline in their full-year profits in the 2015 financial year. However, a few ones such as Access Bank Plc, Zenith Bank Plc, United Bank for Africa Plc and GTBank outperformed the market despite sizeable volume of bad loans.

In the first quarter of 2016, 13 out of the 15 banks whose shares are quoted on the NSE posted a combined PBT of N135.36bn, compared to N148bn in the corresponding period of last year.

Similarly, the 13 banks posted profits after tax of N116.6bn in the first quarter of 2016, compared to N126.4bn in the first quarter of 2015.

ALSO READ  Banks Deliberately Flood Market With Dirty Naira Notes - CBN Exposes

The 13 banks are Access Bank Plc, Diamond Bank Plc, Ecobank Transnational Incorporated, First Bank of Nigeria Limited, GTBank, FCMB Limited, Sterling Bank Plc, Fidelity Bank Plc, UBA Plc, Unity Bank, Wema Bank Plc, Union Bank Plc and Zenith Bank Plc.

Skye Bank Plc and Stanbic IBTC Bank have yet to release their full-year 2015 and first quarter 2016 financial results.

An economic analyst and Head, Investment Advisory, Afrinvest West Africa Limited, Mr. Ayodeji Ebo, said the declining profit in the financial services sector was a reflection of the challenges facing the Nigerian economy.

He said, “Most of the loans in the banks’ books have not been performing on the back of the sharp decline in oil prices. The recent GDP growth rate figure released showed that growth contrasted even in the manufacturing sector, real estate, and oil and gas sectors, among others.

“Delay in fiscal policy choice of monetary and foreign exchange policy have all combined to impact the banks’ risk assets.”

Bad loans, naira volatility and other economic headwinds had made Ecobank, Union Bank, First City Monument Bank Limited, Wema Bank and Fidelity Bank to post a combined profit decline of N53.54bn in the 2015 financial year.

The Chief Executive Officer, HighCap Securities, Mr. David Adonri, said the decline in profits was traceable to ineffective risk management practice in some of the banks and low activities in 2015 due to the political transition, among other variables.

The bad loans in the banking industry rose sharply by 78.8 per cent to N649.63bn in 2015, indicating severe deterioration in the quality of the loan portfolio of the 22 banks, a CBN staff report presented to the Monetary Policy Committee revealed.

The report indicated a general increase in the bad/non-performing loans among the 22 deposit money banks in the country. This was despite the 30 per cent decline in new loans granted by the banks in 2015 to N5.78tn.

According to the report, 18 out the 22 banks recorded increase in bad loans. Furthermore, the number of banks that exceeded the regulatory limit of five per cent for the ratio of bad loans to total loans rose from three in 2014 to eight last year, with three exceeding 10 per cent.

Punch News

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

Why I Didn’t Do Well At Chelsea – Liverpool Star, Mohamed Salah
Sports
41 views
Sports
41 views

Why I Didn’t Do Well At Chelsea – Liverpool Star, Mohamed Salah

MT - April 20, 2018

While speaking in an exclusive interview ahead of Liverpool’s clash at West Brom on Saturday, on Sky Sports Premier League, Mohammed Salah admitted that he is focusing on…

“Why Soldiers Burnt Houses In Benue State” – Army Spokesperson
Shocking
33 views
Shocking
33 views

“Why Soldiers Burnt Houses In Benue State” – Army Spokesperson

MT - April 20, 2018

The Nigerian army has taken responsibility for the attack, which resulted in burning down of houses in a Benue community on Thursday. The Army said the attack…

Meet Vivian Chiologi, John Shittu’s Wife Who Got Married At 50, Gave Birth At 51
Best of Nigeria
39 views
Best of Nigeria
39 views

Meet Vivian Chiologi, John Shittu’s Wife Who Got Married At 50, Gave Birth At 51

MT - April 20, 2018

My darling Viv, today I celebrate you and I thank God for your life and strength. What a testimony your life has become. You met and fell…

Lazy Youths: Why Buhari Should Apologize And Be Forgiven – Shehu Sani
Politics
34 views
Politics
34 views

Lazy Youths: Why Buhari Should Apologize And Be Forgiven – Shehu Sani

MT - April 20, 2018

SHEHU Sani, Senator representing Kaduna Central, has urged President Muhammadu Buhari to apologize over his remarks about Nigerian Youths. While answering a question at the Commonwealth Business…

19-Year-Old Udeh Precious Wins 2018 Sisi Oge Cultural Pageant (Photos)
Best of Nigeria
30 views
Best of Nigeria
30 views

19-Year-Old Udeh Precious Wins 2018 Sisi Oge Cultural Pageant (Photos)

MT - April 20, 2018

19 year old Miss Udeh Precious has emerge winner of the 2018 Sisi Oge Cultural Pageant. The actress and model beat 19 other contestants in the competition…

Nigeria Uninterruptible Power Supply To Reach 4.7% In 2024
Business
30 views
Business
30 views

Nigeria Uninterruptible Power Supply To Reach 4.7% In 2024

PH - April 20, 2018

Nigeria Vision 20:2020 is set to be a major development plan for the country to accelerate growth of commercial and industrial sectors over the coming years. Further,…

Nigeria’s Brent Crude Hits $73.79 per Barrel
Business
34 views
Business
34 views

Nigeria’s Brent Crude Hits $73.79 per Barrel

PH - April 20, 2018

An improvement in Nigeria’s oil earnings is on course as prices held firm on Friday near three-year highs reached earlier this week as ongoing Organisation of Petroleum…

Debbie Rise’s Sister Tee-Rise Releases Gospel single “First Loved Me”
Entertainment
40 views
Entertainment
40 views

Debbie Rise’s Sister Tee-Rise Releases Gospel single “First Loved Me”

PH - April 20, 2018

Temilolu Olurishe also known as Tee-Rise is a young lady with a desire to express her worship to God in her songs while she helps others enjoy…

WATCH: Chimamanda Adichie Talks #MeToo, Feminism and Gay Rights on CNN
Best of Nigeria
40 views
Best of Nigeria
40 views

WATCH: Chimamanda Adichie Talks #MeToo, Feminism and Gay Rights on CNN

PH - April 20, 2018

Chimamanda Ngozi Adichie was on CNN to discuss the #MeToo movement, feminism, and rights of LGBT people with Christiane Amanpour. The writer who revealed earlier this week…

19-Year-Old Udeh Precious emerges Winner of the 2018 Sisi Oge Cultural Pageant
Art, History and Culture
37 views
Art, History and Culture
37 views

19-Year-Old Udeh Precious emerges Winner of the 2018 Sisi Oge Cultural Pageant

PH - April 20, 2018

The 19-year-old model, actress and show host, Udeh Precious, beat stiff competition from 19 other contestants to emerge winner of the 2018 Sisi Oge Cultural Pageant. Precious,…

BBNaija: Tobi Bakre Is Not A Lazy Nigerian Youth; Check Out His 5 Professions..
Best of Nigeria
42 views
Best of Nigeria
42 views

BBNaija: Tobi Bakre Is Not A Lazy Nigerian Youth; Check Out His 5 Professions..

MT - April 20, 2018

Shared Via IG With Caption .. Nigerians are one of the most resourceful and hardworking people in the world. From generation to generation, this has remained true.…

Veteran Actress, Ireti Doyle Shares How She Almost Lost A Job “For Being The Wrong Skin Colour”
Entertainment
40 views
Entertainment
40 views

Veteran Actress, Ireti Doyle Shares How She Almost Lost A Job “For Being The Wrong Skin Colour”

PH - April 20, 2018

Veteran actress Ireti Doyle, in a post on her Instagram page, is speaking about colorism. In her post, she details how she almost lost a major gig…

1771 Cases of Domestic Violence, 138 Against Men, Recorded in 10 Months in Lagos
Shocking
45 views
Shocking
45 views

1771 Cases of Domestic Violence, 138 Against Men, Recorded in 10 Months in Lagos

PH - April 20, 2018

The Lagos State Domestic Violence & Sexual Violence Response Team (DVSRT) recorded 138 cases against men between May 2017 and March 2018. This was revealed by the…

5 Women-Owned Tech Spaces that VP Osinbajo Could Have Visited During #VPTourOfTech – Mary Olushoga
Business
42 views
Business
42 views

5 Women-Owned Tech Spaces that VP Osinbajo Could Have Visited During #VPTourOfTech – Mary Olushoga

PH - April 20, 2018

Why are women innovators largely ignored in Nigeria’s male-dominated technology spaces? Why didn’t Vice President Osinbajo visit any women-owned spaces during the highly popular and attention-grabbing #VPTourofTech?…

#ReadyToBeatMalaria: Chimamanda Adichie Joins Bill Gates, Prince Charles at Malaria Summit in London
Food and Health
52 views
Food and Health
52 views

#ReadyToBeatMalaria: Chimamanda Adichie Joins Bill Gates, Prince Charles at Malaria Summit in London

PH - April 20, 2018

Nigerian writer Chimamanda Ngozi Adichie gave a speech at the Malaria Summit on Wednesday, 18th of April,in London, England. The Malaria Summit was held to urge Commonwealth…

Mace Theft: How Ike Ekweremadu Redeemed Lawmakers’ Image
Politics
77 views
Politics
77 views

Mace Theft: How Ike Ekweremadu Redeemed Lawmakers’ Image

PH - April 20, 2018

A member of House of Representatives, Rep. Joseph Akinlaja (Ondo-PDP), has said Deputy President of the Senate, Mr Ike Ekweremadu’s wisdom saved Nigeria a greater embarrassment on…

Why Federal Government Wants Rail Line Between Nigeria And Niger – Amaechi
Business
54 views
Business
54 views

Why Federal Government Wants Rail Line Between Nigeria And Niger – Amaechi

PH - April 20, 2018

The Minister of Transportation, Rotimi Amaechi, has explained that the rail line from Kano in Nigeria to Maradi in Niger Republic was mainly to encourage business owners…

Government Policies Making It Hard For African Youth To Succeed – Tony Elumelu
Business
43 views
Business
43 views

Government Policies Making It Hard For African Youth To Succeed – Tony Elumelu

PH - April 20, 2018

Tony Elumelu, chairman of Heir Holdings, says government policies have been making it hard for African youth to succeed in their endeavours. Speaking on Thursday at a…

Loading...