GTBank, UBA, Fidelity, Access, eight other grants N2.7trn loan to customers in six-month
By Kayode Ogunwale

banks1Despite numerous challenges facing Nigeria banking industry, 12 banks have loaned N2.694 trillion to customers between January and June 2016.

A study carried out by Business Standard Online revealed that Guaranty Trust Bank, United Bank for Africa, Fidelity Bank, FBN Holdings, Access Bank, Union Bank of Nigeria, Diamond Bank, Sterling Bank, Unity Bank, Zenith Bank, FCMB, and Ecobank Transnational Incorporated (ETI) granted 8.47 per cent of their total assets to customers as advances and loans during the first half of the year 2016. This is massive improvement for the banks when compared to N874.6 billion loaned to their customers during the same period of 2015, which is 4.02 per cent of their total assets for half year 2015.

ETI, a multinational lender granted the highest amount of N624 billion between January and June 2016, followed by Access Bank with N382 billion and FBN Holdings and Zenith Bank with N294 billion and N290 billion respectively.

Also, UBA loaned N254 billion to its customers during the period, followed by Diamond Bank with N219 billion, Guaranty Trust Bank with N189 billion and Fidelity Bank with N133 billion. Sterling Bank, Union Bank, FCMB and Unity Bank granted their customers loans of N124 billion, N109 billion, N64 billion and 12.4 billion respectively.

Meanwhile, total loans and advances to their customers at the end of half year 2016 stood at N15.390 trillion.

The total advances and loans to customers of ETI as at June 30, 2016 stood at N2.856 trillion, as Zenith Bank increased its own to N2.279 trillion and FBN Holdings total advances and loans to customers amounted to N2.111 trillion. Access Bank total advances and loans to customers amounted N1.747 trillion while Guaranty Trust Bank, UBA, Diamond Bank and Fidelity stood at N1.560 trillion, N1.290 trillion, N982.344 billion and N711.139 billion respectively. As FCMB, Union Bank, Sterling Bank and Unity Bank advances and loans to customers stood at N657.021 billion, N475.942 billion, N462.316 billion and N258.538 billion correspondingly.

Banking industry in Nigeria 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 has 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.

As a result of the difficulties facing the banks, only Guaranty Trust Bank, Access Bank, UBA and Union Bank improve on their profit after tax declared for half year 2016 when compared to what they released for the same period of 2015. Although, the remaining eight banks also recorded profit but lower than what they declared during the half year 2015.

The 12 banks had in half year 2015 recorded profit after tax of N313.738 billion dropped to N305.149 billion at the end of half year 2016, represented 2.74 per cent decrease.