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Eight banks grow loans, advances by 63% to N8.2tn

By on March 31, 2015

The banking sector’s contribution to the growth of the nation’s economy improved in 2014 as eight banks grew loans and advanced by 63 per cent or N3.229 trillion to N8.277 trillion.
THISDAY checks revealed that all the eight banks that have so for released their audited results for the year ended December 31, 2014, recorded growths in their loan books.

In all, the banks recorded loans and advances of N8.277 trillion in 2014, up from N5.048 trillion in 2013. The banks are: Zenith Bank Plc, Guaranty Trust Bank Plc, Access Bank Plc, United Bank for Africa (UBA) Plc, First City Monument Bank Plc, Unity Bank Plc, Wema Bank Plc and Sterling Bank Plc.

An analysis of the loans in absolute terms, Zenith Bank Plc led with N1.729 trillion, up from N1.251 trillion in 2013. GTBank Plc followed with N1.281 trillion compared with N1.007 trillion in 2013.

Access Bank Plc recorded N1.110 trillion , which is 41 per cent above the  N786 billion in 2013. UBA Plc ended the year with loan book of N1.071 trillion, up 14 per cent from N937 billion in 2013.FCMB grew its loans to N618 billion, up from N451 billion, while Sterling Bank Plc recorded N371 billion, compared with N322 billion in 2013. Unity Bank Plc grew its loans from N195 billion to N219 billion, while Wema Bank Plc recorded a leap of 50 per cent  in loan book from N99 billion to N149 billion.

Commenting on its loan growth of UBA, the Group Managing Director/CEO, Mr. Phillips Oduoza, said it was done without compromising quality.

According to him, the  bank focuses its lending on emerging growth sectors across the African markets; agriculture, manufacturing, resource-based sectors such as oil, gas and mining, information and communication technology, power and infrastructure.

Speaking in the vein,  the Group Chief Financial Officer, UBA Plc, Ugo Nwaghodoh, said:  “We continue to support Africa-focused businesses and governments, given our strong belief in the continent’s prospect. We believe the opportunities in Africa far outweigh the risks, given our on-the-ground experience in these markets.  We, however, do not compromise our risk management criteria and selective approach to lending across all our target markets, as we focus on quality and profitable risk assets that  fit into our sustainable growth principles and objectives.”

Also commenting, the  the Group Chief Risk Officer, UBA Plc, Uche Ike explained the growth in the bank’s loan book that  is in line with it moderate risk appetite in the year 2014.
He also said that the bank was pleased with the quality of the risk assets created, as reflected in the low 1.55 per cent non-performing loan ratio and moderated 0.7 per cent  cost of risk.

“These measures of asset quality are evidence of our investment in risk management; human capital and enterprise risk management  (ERM)  tools. We will remain consistent in our responsible approach to lending, especially as we are conscious of macroeconomic headwinds in our core markets. We will continue to maintain a diversified portfolio, with strict concentration limits on obligors, sectors, market segments and markets. More so, we will be proactive than ever in our portfolio monitoring in the years ahead, as we are committed to being the industry benchmark on asset quality,” Ike said.

 

[ThisDay]