The total assets of Nigerian banks increased from 21.89 trillion naira in 2011 to 24.58 trillion naira in 2012, representing a 10.91% jump, according to the 2012 Annual report of the Nigerian Deposit Insurance Company (NDIC), made available on Wednesday (US$1-155 Naira).
The report shows that out of the total industry assets of 24.58 trillion naira, total loans and advances stood at 8.15 trillion naira, representing over 33% (or one-third) of total assets.
Of the banking industry total loans, 4.48 trillion naira (or 54.97%) was extended to the real sector of the economy in 2012 as against 3.88 trillion naira (or 53.37%) and 3.51 trillion naira (or 48.95%) in 2011 and 2010 respectively.
“With regard to bank performance, the banking industry recorded significant improvement in its financial condition and performance in 2012 as revealed by all major financial indicators, compared to the previous year.
‘For instance, the banking industry’s total assets grew from 21.89 trillion Naira in 2011 to 24.58 trillion Naira in 2012 (or 10.91%),” the report said.
A rising trend in the banking industry’s credits to the Agricultural Sector was also noticed, as these stood at 3.60% of total loans and advances in 2012, compared to 2.15% and 3.11% recorded in 2010 and 2011 respectively.
The report attributed the improvement in the banking industry’s asset quality to the purchase of the non-performing loans of banks by the Assets Management Company of Nigeria (AMCON) and the enhanced credit risk management by the banks.
This has resulted in an improvement in the industry’s profit before tax which increased from a loss of 6.71 billion naira in 2011 to a profit of 525.34 billion naira in 2012.
“In terms of level of soundness, ten (10) banks were rated sound, nine (9) satisfactory and only one (1) bank was rated marginal. Thus, the industry could be considered to be relatively stable in 2012. There was no unsound bank in the banking industry as at 31st December, 2012,” the report showed.
It however noted that the banks reported 3,380 fraud cases involving 17.97 billion naira with expected/contingent loss of about 4.52 billion naira in 2012.