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    Tuesday, November 15, 2022

    Nigerian Banks’ Assets Hit N66tn in a Year

    Despite the country’s sluggish economy, Nigerian banks grew their total assets by N10.72 trillion in one year (19.13 per cent) to N66.76 trillion in August 2022, from N56.04trillion in the corresponding period of last year, latest data released by the Central Bank of Nigeria (CBN) shows.

    The CBN disclosed in the personal statement of a member of the Monetary Policy Committee, Kingsley Obiora, that the banking sector remained resilient amid economic challenges.

    It stated, “Despite these headwinds, the banking system remained sound, safe and resilient amid slowing economic growth. Total assets of the banking industry showed an increase of N10.72tn or 19.13 per cent from N56.04tn per cent in August 2021 to N66.76tn in August 2022, driven by balances with CBN/banks, investments, and credit expansion to the real sector.

    “As a result, the total flow of credit to the economy increased from N22.62tn in August 2021 to N28.12tn, representing an increase of 24.3 per cent to the key sectors of the economy, including oil and gas, manufacturing, general, governments and commerce.”

    Also, he stated, lending to individuals and households increased from N1.85tn in Q2, 2020 to N2.5tn in Q2, 2022.

    He said the industry non-performing loan ratio was 4.8 per cent at the end of August 2022 compared with 6.0 per cent at the end of August 2021, which was below the prudential maximum of 5.0 per cent.

    The decline in NPLs was attributable to write-offs, restructuring of facilities, Global Standing Instruction and sound credit risk management by banks.

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