For banks that have sizeable FX NPLs, depreciation could hurt their NPL ratios. Had they been holding the requisite provisions on these NPLs in naira, that would put significant pressure on their provisions and coverage ratios, as they need to set aside more naira to maintain coverage ratios at the pre-depreciation level. For the banks that held the provisions in dollars, these dollar provisions would naturally inflate at a weaker exchange rate, but the banks do not need to set aside real naira in order to maintain coverage ratios. Based on feedback from management, FBNH and Diamond have the highest proportion of their NPL book in foreign currency, at 56% and 45-50%, respectively, with Diamond mentioning that it holds its provisions in naira. Overall, these sizable FX NPLs are a concern for us, but, unlike Diamond, FBNH has significant FX long positions that should help it to partly offset the impact of some of these asset quality challenges.