Stanbic IBTC, FBN holdings and Zenith Bank have recorded the biggest increase in customer loans and advances in the first nine months of 2022.
2022 was an unusual year for most economies. Following the rollout of the covid-19 vaccine and a gradual recovery in oil prices in late 2021, most people expected 2022 to kickstart global economic growth. Instead, a war started, causing high inflation and higher interest rates across the globe. A shock like this often makes several sectors vulnerable, including banking.
Data obtained from the Nigerian Exchange Group (NGX) show that Nigerian banks reported double-digit growth in their customer loan books during the nine-month period of 2022.
Stanbic IBTC Holdings Plc, FBN Holdings, Zenith Bank, Fidelity Bank, Access Holdings Plc, FCMB Group, Union Bank, Wema Bank, Sterling Bank, and Ecobank Transnational Incorporated were the banks with the highest growth in loans to customers in the nine months leading up to September, according to BusinessDay’s analysis of the 13 largest listed banks on the NGX.
Collectively, these banks grew their customer loan book by 19 percent to N27 trillion in the nine-month period of 2022 from N23 trillion in the corresponding period.
Breakdown of 10 banks with the highest customer loan book growth
Stanbic IBTC Holdings Plc
In the nine-month period of 2022, Stanbic led the pack with the highest customer loan book growth rate by reporting a 37.47 percent increase in its loans and advances to customers.
Its loans and advances during the period grew to N1.13 trillion from N822 billion in the nine-month period of 2021.
Further analysis of its nine months financial results shows that the Group generated more loans from corporate and investment banking amounting to N757 billion, while it generated N82 billion and N326 billion from customer and high network clients and business and commercial clients respectively.
FBN Holdings Plc
Second on the list is FBN Holdings Plc leading with a 29.60 percent growth in loans and advances to customers during the nine-month period of 2022. Its loans and advances to customers grew to N3.59 billion in the nine-month period of 2022 from N2.77 billion in the corresponding period of 2021.
Term loans, overdraft and personal finance loans given out by the Group in the nine-month period of 2022 amounted to N3.26 trillion, N428 billion, and N43 billion respectively.
Zenith Bank Plc
Zenith Bank followed closely, reporting a 28.48 percent increase in loans and advances to customers amounting to N3.88 trillion in the nine-month period of 2022 from N3.02 trillion in the same period of 2021.
Further analysis into its loans and advances to customers show that the banks term loans grew by 23 percent to N2.71 trillion, overdrafts grew by 57 percent to N589 billion, and on lending facilities grew by 25 percent to N761 billion in the nine-month period of 2022.
Fidelity Bank Plc
Fidelity Bank took fourth place, reporting a 23.60 percent rise in loans and advances to customers totaling N1.99 trillion in the nine-month period of 2022 from N1.61 trillion in the nine-month period of 2021.
The loan growth was brought on by a 23 percent increase in loans to corporate and other organisations in the nine-month period of 2022 which amounted to N1.99 trillion while loans to individuals grew by 12 percent to N70 billion.
Access Holdings Plc
Loans and advances to customers reported by Access Holdings Plc grew by 23.20 percent to N4.62 trillion in the nine-month period of 2022 from N3.75 trillion in the corresponding period of 2021.
The Group’s loans to individuals totalled N400 billion, while its loans to corporate entities and other organizations totalled N4.22 trillion in the nine-month period of 2022.
FCMB Group Plc
FCMB Group grew its loans and advances to customers by 23.06 percent in the nine-month period of 2022 to N1.19 trillion from N967 billion in the nine-month period of 2021.
The Group reported term loans amounting to N885.9 billion, overdrafts amounting to N94.96 billion, and on lending facilities amounting to N244.99 billion in the nine-month period of 2022.
Union Bank Plc
With an 18.54 percent growth in its customers loan book, Union Bank’s loans and advances to customers rose to N959 billion in the nine-month period of 2022 from N809 billion in the nine-month period of 2021.
The Group’s foreign currency (FCY) loans amounted to N452 billion in the nine-month period of 2022, while its local currency (FCY) loans amounted to N538 billion.
Wema Bank Plc
Wema Bank grew its loans and advances to customers by 16.37 percent in the nine-month period of 2022 to N462 billion from N397 billion in the same period of 2021.
The Group reported term loans totaling N426 billion, overdrafts totaling N48 billion and advances under finance lease totaling N6 billion in the nine-month period of 2022.
Sterling Bank Plc
Sterling Bank grew its loans and advances to customers by 10.64 percent to N749 billion in the nine-month period of 2022 from N677 billion in the nine-month period of 2021.
The Group reported loans to corporate entities and other organizations totaling N607 billion while its loans to individuals totaled N160 billion in the nine-month period of 2022.
Ecobank Transnational Incorporated
Loans and advances to customers reported by Ecobank were up 9.81 percent to N4.03 trillion in the nine-month period of 2022 from N3.67 trillion in the nine-month period of 2021.
Its term loans for the period amounted to N3.86 trillion, overdrafts amounted to N418 billion, mortgage loans amounted to N57 billion and credit cards amounted to N533 million in the nine-month period of 2022.
