GTBank, Access Bank, Zenith Bank, United Bank of Africa and First Bank (FUGAZ) have increased their loans and advances to N9.34 trillion in the first half of 2019 according to findings by Nairametrics.
Details: Access Bank
Access Bank’s net loans and advances increased from N2.14 trillion as at the end of December 2018 to N2.85 trillion by June 2019, an increase of 33%.
Loan distribution by sector:
- Oil and gas (Services, upstream, downstream, refinery) got 29.6% of the total loan
- General commerce – 11.5%
- Real Estate – 7.7%
- Government – 7.5%
- Finance & Insurance – 7.5%
- Construction – 6.9%
- General – 4.2%
- Transportation – 3.3%
- Manufacturing – 3.3%
- Food manufacturing – 2.8%
[READ MORE: Lenders increase unsecured loans to households in Q3 2019 – CBN]
Zenith Bank
Zenith Bank’s loans and advances dropped from N1.82 trillion in December 2018 to N1.80 trillion by June 2019, a drop of 1.09%.
Loan distribution by sector:
- Oil and Gas – N541.9 billion
- Manufacturing – N507.2 billion
- Government – N311.5 billion
- General commerce – N225.8 billion
- Agriculture – N104 billion
- Power – N92.7 billion
- Consumer credit – N45.9 billion
- Education – N4.3 billion
UBA Plc
UBA Plc’s loans and advances increased from N1.73 trillion in 2018 full year to N1.77 trillion 2019 half year, by 2.2%.
Distribution by sector:
- Oil and Gas – 21%
- Manufacturing – 18%
- Government – 12%
- Commerce – 11%
- Power – 10%
- Consumer – 9%
- Others – 7%
- Communication – 6%
- Real Estate and Construction – 3%
- Agriculture – 3%
First Bank of Nigeria
The Nigerian oldest financial institution’s loan also dropped from N1.72 trillion to N1.59 trillion within the same period.
Distribution by sector:
- Oil and Gas (upstream, downstream, services) – 34.8%
- Manufacturing – 14.4%
- Government – 9.7%
- Real Estate – 7.9%
- Information and Communication – 6.7%
- Construction – 6.3%
- Consumer – 5.6%
- Power & Energy – 4.1%
- General Commerce – 4.0%
GTBank
Guaranty Trust Bank Plc increased its loan and advance by 0.79%, from N1.26 trillion to N1.27 trillion within same period.
Distribution by sector:
- Oil and Gas (upstream, midstream, downstream) – 44%
- Manufacturing – 19%
- Individuals – 11%
- Government – 5%
- Info, Telcom & Transport – 4%
- Capital market & financial institutions – 4%
- General commerce – 4%
- Others – 4%
- Construction – 3%
- Agriculture – 2%
- Education – 1%
Meanwhile, Nairametrics reported that secured lending in Q3 2019 increased. According to the CBN report, the increased availability of secured credit to households in Q3 2019 came as a result of increased market share and high-risk appetite of lenders. Essentially, the high-risk appetite of lenders means lenders are willing to take high chances when lending to households.
Meanwhile, the CBN report showed that secured loans to households are expected to increase in the fourth quarter of 2019. According to the CBN, this will be due to improving liquidity position and higher risk appetite of lenders.
While there was an increase in both unsecured and secured lending to households, lenders recorded lower losses given by default from households lending in Q3 2019 and this is expected to further improve in Q4 2019.
[READ ALSO: GTB, UBA, Zenith, Access Banks’ salary advance loans]
The bottom line
A quick look at the trend of unsecured credit to households over Q1 to Q3 2019 showed that despite the fluctuations in trend of approved loan applications, the availability of unsecured credit to households improved.
While the CBN attributed the increase in unsecured credit provision to improved risk appetite and improved liquidity, this might also be attributed to the rising number of fintech companies in the lending market in Nigeria.