Bad loans in 14 banks hit N177bn in 6 months

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THE economic recoveries witnessed in the first half of 2017 did not shield the banking sector from some adversities in the form of rising bad loans. Industry stakeholders have said that the impact is still being felt negatively as banks’ customers were not able to meet their financial obligations on loan repayment, resulting to 14 banks booking N177.3 billion impairment losses for the period. The banks are: United Bank for Africa, UBA Plc, Fidelity Bank, Access Bank Plc, Stanbic IBTC, Ecobank Group, Zenith Bank Plc, GTBank Plc, and Diamond Bank Plc. Others are, Sterling Bank Plc, FCMB Plc, Wema Bank Plc, Union Bank Plc, FBN Holding Plc, and Unity Bank Plc. However, the growth rate appeared less agitating at 3.6 per cent from N171.243 billion in the corresponding period of 2016, when compared to the net interest income of the 14 banks which stood at N797.567 billion, representing a growth of 28.7 per cent from N619.517 billion recorded in the corresponding period of 2016. Financial Vanguard review of the banks’ performance with regard to the impairment losses and the interest income showed that the 14 banks recorded credit losses of 22.2 per cent of the net income realised in the period under review. Ecobank Group recorded the highest impairment losses of over N40 billion, while Zenith Bank recorded the highest income in the six months period. Further analysis showed that First Bank recorded no impairment loss with low interest income, while Fidelity Bank recorded the least impairment loss of N4.81 billion. Meanwhile, top five banks on impairment losses for the period under review showed that Ecobank recorded N49.016billion representing a growth of 54.3 per cent from N31.764 billion in the corresponding period of 2016; it was followed by Zenith Bank with N34.512 billion, showing a growth of  196 per cent. Diamond Bank recorded N20.312 billion, representing a growth of 6.9 per cent from N18.998 billion, followed by Stanbic IBTC, which recorded N13.953 billion, representing a growth of 65.1 per cent and Unity Bank recorded N11.227 billion, showing a drop of 37 per cent from N17.833 billion in 2016

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