Zenith Bank, GTBank, Access Bank, United Bank of Africa and
First Bank (FUGAZ) have increased their loans and advances to N9.34 trillion in
the first half of 2019 according to findings by Nairametrics.
Zenith Bank
Zenith Bank’s loans and advances dropped from N1.82 trillion
in December 2018 to N1.80 trillion by June 2019, a drop of 1.09%.
Loan distribution by sector:
Oil and Gas – N541.9 billion
Manufacturing – N507.2 billion
Government – N311.5 billion
General commerce – N225.8 billion
Agriculture – N104 billion
Power – N92.7 billion
Consumer credit – N45.9 billion
Education – N4.3 billion
Details: Access Bank
Access Bank’s net loans and advances increased from N2.14
trillion as at the end of December 2018 to N2.85 trillion by June 2019, an
increase of 33%.
Loan distribution by sector:
Oil and gas (Services, upstream, downstream, refinery) got
29.6% of the total loan
General commerce – 11.5%
Real Estate – 7.7%
Government – 7.5%
Finance & Insurance – 7.5%
Construction – 6.9%
General – 4.2%
Transportation – 3.3%
Manufacturing – 3.3%
Food manufacturing – 2.8%
UBA Plc
UBA Plc’s loans and advances increased from N1.73 trillion
in 2018 full year to N1.77 trillion 2019 half year, by 2.2%.
Distribution by sector:
Oil and Gas – 21%
Manufacturing – 18%
Government – 12%
Commerce – 11%
Power – 10%
Consumer – 9%
Others – 7%
Communication – 6%
Real Estate and Construction – 3%
Agriculture – 3%
UBA, bank, loans, loan
First Bank of Nigeria
The Nigerian oldest financial institution’s loan also
dropped from N1.72 trillion to N1.59 trillion within the same period.
Distribution by sector:
Oil and Gas (upstream, downstream, services) – 34.8%
Manufacturing – 14.4%
Government – 9.7%
Real Estate – 7.9%
Information and Communication – 6.7%
Construction – 6.3%
Consumer – 5.6%
Power & Energy – 4.1%
General Commerce – 4.0%
First Bank, loans, loan
GTBank
Guaranty Trust Bank Plc increased its loan and advance by
0.79%, from N1.26 trillion to N1.27 trillion within same period.
Distribution by sector:
Oil and Gas (upstream, midstream, downstream) – 44%
Manufacturing – 19%
Individuals – 11%
Government – 5%
Info, Telcom & Transport – 4%
Capital market & financial institutions – 4%
General commerce – 4%
Others – 4%
Construction – 3%
Agriculture – 2%
Education – 1%
Meanwhile, the CBN report showed that secured loans to
households are expected to increase in the fourth quarter of 2019. According to
the CBN, this will be due to improving liquidity position and higher risk
appetite of lenders.
While there was an increase in both unsecured and secured
lending to households, lenders recorded lower losses given by default from
households lending in Q3 2019 and this is expected to further improve in Q4
2019.
The bottom line
A quick look at the trend of unsecured credit to households
over Q1 to Q3 2019 showed that despite the fluctuations in trend of approved
loan applications, the availability of unsecured credit to households improved.
While the CBN attributed the increase in unsecured credit
provision to improved risk appetite and improved liquidity, this might also be
attributed to the rising number of fintech companies in the lending market in
Nigeria.
