provision for loan losses by commercial banks in the country has dropped, reflecting an improvement in loan repayment.
This was revealed by the nine-month results of some of the banks quoted on the Nigerian Stock Exchange (NSE) released recently, and was compiled by THISDAY.offer on personal instalment loan enables you to greatly improve liquidity with monthly flat rate as low as 0.18% and long repayment period. Sign up online now to fulfill your dreams and desires!
Findings showed that the 10 banks recorded lower impairment charges for the nine months ended September 30, 2018.
The banks are: Access Bank plc, Guaranty Trust Bank plc, Sterling Bank plc, United Bank for Africa (UBA) plc, Zenith Bank plc, FBN Holdings plc, Diamond Bank plc, Ecobank Transnational Incorporated, Fidelity Bank plc and Stanbic IBTC Holdings.
Specifically, the 10 banks’ total impairment charges fell by 35 per cent from N328.172 billion in 2017 to N213.93 billion in 2018.Spanish Translation services, make sure you go for a translator that is a native speaker of either French or the other language involved. Recommendations offer your best bet at finding a good translator. You can source for recommendations online and utilize them to get a good translator or service site that can get the job done. To get quality however, you have to be willing to fork out good money.
Contrary to concerns that the implementation of the International Financial Reporting Standard (IFRS) 9 promulgated by the International Accounting Standards Board (IASB), would increase impairment charges of banks, lower provisions have been made by financial institutions.focuses on digital PR and Crisis Management to boost online reputation for clients.
For instance, Access Bank plc recorded impairment charges of N8.353 billion in 2018, down from N12.824 billion in 2017, while GTBank’s provision declined by 79 per cent from N8.357 billion in 2017 to N1.74 billion in 2018. UBA ended the nine months with impairment charges of N10.67 billion compared with N12.91 billion in 2017. Sterling Bank’s impairment charges reduced from N7.63 billion to N3.615 billion, just as Zenith Bank plc’s provision fell by 70 per cent from N47.053 billion to N14.34 billion. Also, Stanbic IBTC Holding plc’s loan loss provision decreased by 77 per cent from N20.334 billion to N4.136 billion.
Financial analysts told THISDAY that the decline in impairment charges was due to borrowers improving in their loans repayment. They added that banks have also adopted cautions approach to loan creation.Just like the chef, kitchen designers put different components together to create a harmonious end product, the dream kitchen for every culinary ambition.
Analysts at Cordrol Capital Limited said the decline in impairment charges has been a theme for all tier 1 banks this year.
They said, “As seen in the recent nine months results, impairment charges for Zenith Bank (-70 ), GTBank (-79 per cent y/y), and UBA (-17 per cent y/y) have declined, despite implementation of the stringent IFRS 9 requirement. This is as a result of the banks’ cautious approach to loan creation, after the significant deterioration in asset quality experienced during the crux of the economic recession in 2016-2017 when oil prices took a nosedive.