Ecobank, Zenith, Access, 8 Other Banks Loan N38.55 Trillion to Customers in 6 Months
- Commercial banks in Nigeria gave out combined loans of N38.55 trillion in the first half of 2023
- The banks' lending to customers within the period under review increased by 50%
- Ecobank led the list of top banks with the highest customer loans, with N8 trillion
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
Despite CBN's high interest rates, eleven banks in Nigeria saw their cumulative lending surge by 50% in the first six months of 2023.
The banks' financial statements revealed that the combined loans and advances of the banks increased to N38.55 trillion in the first half of 2023 compared to N25.85 trillion in the same period in 2022, Legit.ng report showed.
Source: Getty Images
Ecobank leads the list with N8 trillion
Analysts believe that the bulk of the spike in the banks' loan books is due to the naira devaluation as most of the banks have a large portion of their loan books in foreign currency, implying that if converted to the exchange rate, the naira equivalent will be higher.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
Ecobank Transnational leads the banks with the highest customer loans, followed by Access Bank, Zenith Bank, United Bank for Africa, Fidelity Bank, Guaranty Trust Bank, and First Bank.
The increase in the banks' lending occurred because customers would need loans in H1 despite the high interest rates set by the CBN, BusinessDay reports analysts as saying.
The Monetary Policy Rate (MPR) is the rate at which the CBN lends to commercial banks and often determines the cost of the funds in the economy.
Loans to increase further as CBN tightens policies
The apex bank began its monetary policy tightening circle in May last year, with its benchmark interest rate rising from 11.5% to 18.75% in July.
There are worries that the CBN will continue to increase interest rates to overcome inflation, which has worsened reportedly due to the new reforms of President Bola Tinubu.
Nigeria's primary inflation drivers were the petrol subsidy removal and the naira floating.
Ecobank led the pack with the highest loans and advances to customers with N8 trillion in H1, reflecting a 103.8% increase from the year before.
Other banks with the highest loans to customers
Access Bank increased its loans by 45.2% to N6.71 trillion, while First Bank increased its lending to N5.26 trillion from N3.38 trillion.
Zenith Bank saw a 44% rise in its lending to N5.05 trillion, UBA gave out loans to customers amounting to N4.5 trillion, Fidelity Bank gave customers N2.65 trillion in loans, GTBank released N2.32 trillion to customers as loans, and Stanbic IBTC gave customers N1.66 trillion as loans in the first six months of 2023.
FCMB saw its loans to customers increase by 37.5%, reaching N1.54 trillion in 2023, while Wema Bank doled out N627 billion and Unity Bank gave customers loans amounting to N199 trillion.
Access Leads, UBA 3rd: Top Nigerian banks with highest loan amounts to customers in 2023
Legit.ng earlier reported that Nigerian banks listed on the Nigerian Exchange significantly increased their lending to customers during the first half of 2023.
According to data obtained by Legit.ng, eleven banks, as of the end of June 2023, have disbursed N26.83 trillion to their customers.
The banks surveyed are First Bank Holding Company, Access Holding Company, Zenith Bank, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), First City Monument Bank (FCMB), Fidelity Bank, Stanbic IBTC Bank, Sterling Bank, Unity Bank, and Wema Bank.
Source: Legit.ng
