Home Business Nigerian banks earned N588.86bn in 2015 – NDIC

Nigerian banks earned N588.86bn in 2015 – NDIC

By Alex Chiejina
ABUJA (Sundiata Post) – The Nigerian Deposit Insurance Corporation (NDIC) has revealed that unaudited Profit-Before-Tax (PBT) of the banking industry stood at N588.86 billion as at Dec. 31, 2015, representing a decrease of 2.02 per cent over the NGN601.02 billion reported as at Dec. 31, 2014.

NDIC, which stated this in its 2015 report, noted that despite the weakening local economy, outlook and going concern of Nigerian banks remains stable, the banking industry total assets grew marginally by 1.36 percent, total loans and advances rose by 5.56 percent as shareholders’ funds unimpaired by losses increased by 14.02 percent while capital adequacy ratio stood at 17.66 percent.

The NDIC is the government agency in Nigeria saddled with the responsibility of protecting the banking system from instability occasioned by runs and loss of depositors’ confidence. The corporation said its general assessment is the banking industry was stable in respect to the review period.

The banking industry’s total deposit liabilities declined by 2.83 percent, unaudited profits decreased by 2.02 percent while non-performing loans increased by 82.87 percent in 2015. Also ‘Capital Adequacy Ratio (CAR) of the industry was 17.66 per cent in 2015, compared with 15.92 per cent in 2014, but exceeded the minimum threshold of 10 per cent and 15 per cent for national and international banks, respectively.’

The NDIC pointed out that a total of NGN18 billion to fraud cases of various degrees.

’A total of 12,279 fraud cases were reported, representing an increase of 15.71 per cent over the 10,612 fraud cases reported in 2014. However, the amount involved decreased significantly by N7.59bn or 29.63 per cent from N25.60bn in 2014 to N18.02bn in 2015. Similarly, the actual loss suffered by the insured banks decreased by N3.02bn or 48.79 per cent from N6.19bn in 2014 to N3.17bn in 2015,′ the report revealed.

The Nigerian banking industry has come under pressure as a result of various macro-economic challenges in the Nigerian economy. Falling oil prices has increased default in credit given to oil companies. The Federal Government’s adoption of treasury single account, Treasury Single account (TSA), further reduced stable liquidity from the banking system.

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