The financial reports of four Nigerian banks have shown they all recorded non-performing loans (NPL) worth ₦478 billion during the first half of this year.
The banks were listed as Guaranty Trust Bank Holding Plc (GTCO), FBN Holdings Plc, FCMB Group Plc and Fidelity Bank Plc. The NPL figure represents a 16% increase when compared to the ₦413.36 billion reported at the end of 2022.
GTCO’s H1 2023 NPL value was pegged at ₦115.29 billion indicating an increase of 12.6% from ₦102.37 billion reported in the 2022 financial year.
In its presentation to investors and analysts, GTCO said, “The Group’s IFRS 9 Stage 3 loans closed at 4.6% (Bank: 3.6%) in H1-2023 from 5.2% (Bank: 4.7%) in 2022. With Individuals and Others emerging as sectors with the highest NPLs i.e., 20.9% and 30.96% respectively.”
FBN, with about 4.3% NPL ratio and ₦5.26 trillion gross loans and advances in H1 2023, reported its NPL value as ₦226.24 billion indicating a 10.4% increase from ₦204.29 billion reported in 2022.
The holdings in its 2022 financial year declared a 5.4% NPL ratio and ₦3.79 trillion gross loans and advances
Fidelity Bank’s H1 2023 report also showed an NPL score of ₦84.73 billion from ₦61.37 billion reported in the same review period in 2022, while FCMB group declared ₦52.66 billion NPL value as of H1 2023 up from ₦45.01 billion during the same review period in 2022.
The CBN in its resolve to reduce non-performing loans in the banking sector released the Global Standing Instruction (GSI) guideline in 2020 aimed to effectively monitor consistent loan defaulters.
The apex bank noted that the guideline will allow banks to recover the outstanding principal and interest from the borrowers' accounts across all financial institutions in the country whenever they default on payment.