• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Wednesday, July 30, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Banks’ Credit Rises By N4.54trn In 1 Year

by Bukola Idowu
2 years ago
in Business
banks
Share on WhatsAppShare on FacebookShare on XTelegram

Total credit in the banking industry increased by N4.54 trillion or 17.40 per cent by  end of April 2023 compared the level as at April 2022.

Advertisement

The increase, according to experts,  reflects the improvement in industry funding base and adherence to the Central Bank of Nigeria (CBN)’s Loan to Deposit Ratio (LDR) directive.

The sector’s total gross credit increased from N26.10 trillion in April 2022 to N30.64 trillion in April 2023, due also to business strategy and competition. The credit growth was largely recorded in key sectors of the economy, including oil and gas, manufacturing, general commerce, and government.

Sanusi Aliyu, member of the Monetary Policy Committee (MPC) who disclosed this in his personal statement at the last meeting in May 2023, which was released by the CBN on Monday said the upward trend in total credit to the economy had continued since 2019 following the LDR policy.

The banking system stability review report showed that the Capital Adequacy Ratio (CAR), standing at 12.8 percent in April 2023, was above the regulatory minimum of 10 per cent.

RELATED

Port Harcourt Refinery Not For Sale — NNPC

Port Harcourt Refinery Not For Sale — NNPC

8 hours ago
[EDITORIAL] The World Against Trafficking In Persons

EU Announces Extra €6m Support To Fight Human Trafficking In Nigeria

11 hours ago

Liquidity ratio stood at 45.3 percent, above the regulatory minimum of 30 per cent. These suggest that the banking system continues to remain safe, sound and resilient, he said. The industry’s total assets and gross credit to the economy have sustained an upward trend, the former grew year-on-year by N16.65 trillion or 25.88 per cent to N80.97 trillion in April 2023.

Non-performing Loans (NPLs) ratio declined to 4.4 per cent in April 2023 from 5.3 per cent in March 2022, further below the maximum prudential requirement of 5.0 per cent. The continuous decline in NPL was attributable to write-offs, restructuring of facilities, Global Standing Instruction (GSI) and sound credit risk management.

“The report on the banking system stability review was presented to members of the MPC. The financial soundness indicators remain positive and show that the banking system remains strong, sound, and resilient,” Festus Adenikinju, member of the Monetary Policy Committee said in his personal statement at the May 2023 meeting.

The CBN in October 2019 raised the Loan to Deposit Ratio of banks to 65 per cent, after the September 30, 2019 deadline given to the banks to meet its 60 per cent directive. However, the regulator extended the deadline of the 65 percent LDR to March 31, 2020.

Aisha Ahmad, deputy governor in charge of the financial system stability, said in her personal statement at the January 2020 Monetary Policy Committee (MPC) meeting that the LDR policy retained its efficacy, stimulating substantial increases in private sector loans, lowering market lending rates and has progressively diversified industry credit portfolio.

According to Adenikinju, both the Return on Equity (ROE) and Returns on Asset (ROA) increased between March 2023 and April 2023. ROE rose from 21.6 per cent to 22.6 per cent; while ROA increased from 1.6 percent to 1.7 per cent between March 2023 and April 2023, respectively. Interest margins to total operating income declined from 58.1 per cent in March 2023 to 50.5 per cent in April 2023. However, operating cost to operating income declined marginally from 70.6 per cent to 70.5 per cent between March and April 2023. The high operating cost environment of the banking sector should be addressed.

In other climes, he noted that the ratio is 23.5 per cent in Turkey, 50.6 per cent in Brazil, 41.0 per cent in Malaysia, 62.0 per cent in South Africa, 43.2 per cent in Angola, 35.2 per cent in Egypt, Kenya is 45.2 per cent and Ghana, 46.1 per cent.

He said total industry deposits increased by N8.84 trillion or 21.4 per cent between the end of April 2022 and April 2023. The stress tests conducted on the industry show that it can weather the major risks and vulnerabilities in the system.


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel




SendShareTweetShare
Previous Post

Navy Intercepts 206 Bags Of Cannabis Worth N29bn In Lagos

Next Post

Equities Investors Lose N672bn As Gaining Spree Turns

Bukola Idowu

Bukola Idowu

You May Like

Port Harcourt Refinery Not For Sale — NNPC
Business

Port Harcourt Refinery Not For Sale — NNPC

2025/07/30
[EDITORIAL] The World Against Trafficking In Persons
Business

EU Announces Extra €6m Support To Fight Human Trafficking In Nigeria

2025/07/30
Lekki Port Moves 40,000TEUs Transhipment Cargoes Across West African Seaports
Business

Lekki Port Moves 40,000TEUs Transhipment Cargoes Across West African Seaports

2025/07/30
Sub-Saharan Africa’s 3.4% 2024 Growth Inadequate To Curb Poverty – World Bank
Business

World Bank Advocates Strong Policies, Action To End Gas Flaring

2025/07/30
Chams Unveils Driving Forces Of Stellar Performance
Business

Chams Holding Rebrands, Restructures For Future Growth

2025/07/30
Ecobank Nigeria To Reward  500 Customers
Business

Ecobank Group Reports $398m Pre-tax Profit, $1.1bn Net Revenue In H1

2025/07/30
Leadership Conference advertisement

LATEST

MTN Doles Out N290m In Ongoing Mega Promo

Bayelsa Gov’t Donates N100m To Support Adamawa Flood Victims

JUST-IN: Federal Gov’t Increases Scholarship Grants By 50%

Coalition Not About Atiku’s 2027 Ambition — ADC

JUST-IN: Gov Alia Sacks Cabinet, Appoints New Chief Of Staff

CAS Tasks 30 New Pilots On Integrity, Commitment To Professionalism

IAWPA Inducts Amb Calvaliereh As Africa’s ‘Most Peaceful Man 2025’ In Ethiopia

INEC, NOA Close Ties To Strengthen Voter Education, Mobilisation

Tinubu Appoints Baridam, Mmom, Others As Principal Officers Of New Ogoni Varsity

Legendary Michael Jackson’s Dirty Sock Sold For $8,000 At French Auction

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.