11 banks increase loan to customers by N3.59trn

Despite general depression in corporate earnings due to the dwindling global oil price, 11 Deposit Money Banks (DMBs), according to Business247 News Online investigation, granted an increase of N3.59 trillion loans to their customers in nine-month ended September, 2016.

The total loans and advances of the leading Deposit Money Banks to their customers as at the end of nine-month period ended September 2016 stood at N15.7 trillion.

Analysts were in praise of the nation’s banking industry for being able to improve of the funding of business better compared with the preceding years despite that the economy in 2016 has been confirmed to be in recession, impacted by depressed commodity prices, continued sabotage of oil assets, weak investor confidence and a slow convergence of both monetary and fiscal policies.

According to our correspondent’s investigation, most of the Tier-I banks significantly increased their loan to customers in the Oil & Gas Sector, Manufacturing, Construction, Government and General Commerce.

The Tier-I banks include  Guaranty Trust Bank Plc, United Bank for Africa Plc, First Bank of Nigeria Holdings Plc, Access Bank Plc, Zenith Bank Plc and Ecobank Transnational Incorporated (ETI)

Most of the Tier-II under business247 online investigation also increased their loans to customers in the period under review.

Fidelity Bank Plc, Union Bank of Nigeria Plc, Diamond Bank Plc, Sterling Bank Plc and Unity Bank Plc all improved on their loans to customers between January and September, 2016.

The breakdown shows that Ecobank Transnational Incorporated (ETI), a Tier- I financial Institution granted the highest amount of N822 billion to its customers.

Coming second is United Bank for Africa Plc that increased its loans by N503 billion, followed by Zenith  Bank Plc and Access Bank Plc that recorded an increase of  N436 billion and N435 billion to loan to customers respectively.

Furthermore from the Tier-I Deposit Money Banks FBN Holdings and Guaranty Trust Bank Plc between January and September 2016 recorded an increase of N392.8 billion and N268 billion loans granted to customers respectively.

Analyzing Tier-II banks, Diamond Bank Plc lead the chart with N277.59 billion increase on   loan granted to customers, followed by Sterling Bank Plc that granted N153.9 billion.

Others are Fidelity Bank Plc, N150 billion; Union Bank Plc, N134.8 billion and Unity Bank Plc, N18 billion.

Banking industry in the country has been experiencing difficulties in their operations as a result of many factors which include non-availability of government funds for them to transact their businesses.

The industry had been making use of funds belonging to Ministries, Departments and Federal Government Agencies until full implementation of Treasury Single Account (TSA) which mandated all banks to remit government money to Central Bank of Nigeria on daily basis.