Connect with us


Short-term loans, others push banks’ assets to N58.51tn



Massive investments in short-term financing and other prudent measures have made the assets of 10 key commercial banks to grow by N8.09tn (a 16.06 per cent increase) to N58.51tn in one year, reports have revealed.

Specifically, the combined asset of the 10 selected lenders grew from N50.42tn in September 2020 to N58.51tn in September 2021, according to an analysis of the financial result of the banks for third quarter ended September 30, 2021.

The banks under review are Access Bank Plc, Guaranty Trust Plc, Stanbic IBTC, Sterling Bank, Wema Bank Zenith Bank Plc, Union Bank Plc, United Bank for Africa Plc, First Bank of Nigeria Limited, and Ecobank Nigeria.

According to the analysis, Access Bank has the largest asset base (N10.4tn), while Wema Bank has the smallest asset base (N1.09tn).

Access Bank grew its asset base by N2.47tn from N7.93tn to N2.47tn during the period under review.

GTCO also raised its asset by N570.09m from N4.57tn to N5.14tn during the same period.

Stanbic IBTC, which had an asset base of N2.58tn in September, last year grew same by N170.49m to N2.75tn in the same period of this year.

Sterling Bank also raised its asset base from N1.31tn in the third quarter of 2020 to N1.55tn this year, indicating a growth of N243.25m.

Also, Wema Bank which had an asset base of N863.64bn in 2021 grew same by N221.13m to N1.09tn in 2021.

Zenith Bank had an asset base of N8.48tn as at September 31, 2020, but grew same by N270.32m to N8.75tn by September 31, 2021.

United Bank for Africa had an asset base of N7.06tn as at September 31, 2020, but grew same by N1.29tn to N8.35tn by September 31, 2021.

Union Bank, which had an asset base of N2.24tn in September last year, raised same by N325.8bn to N2.56tn by the third quarter of this year.

First Bank of Nigeria had an asset base of N7.13tn as at June 30, 2020, but grew it by N893.36bn to N8.02tn by June 30, 2021. Our correspondent could not immediately access First Bank’s data for the third quarter of this year, hence the use of the lender’s result for last year.

 Ecobank which had an asset base of N7.93tn as at June 30, 2020, grew same by N2.29tn to N10.23tn in the third quarter of this year.

Reacting to the development, a professor of Economics and Public Policy at the University of Uyo and the Chairman of the Foundation for Economic Research and Training, Prof. Akpan Ekpo, said, “Even though there was a pandemic last year, the banks didn’t stopped investing. Don’t forget that a lot of the money the government was giving out was through the banks, so the banks were still in good shape despite the pandemic.

“The pandemic didn’t really affect bank activities. Presently, the economy is not doing well, yet banks are declaring profits. This is so because even during the pandemic, banks were financing short-term investments. That is why their assets are going up. “

Another economist and senior lecturer at the Pan Atlantic University, Dr Olalekan Aworinde, while commenting on the development, “Banks have fixed assets and current assets. We have to consider which of the assets are growing; both assets are good.

“The growth could be from their current assets, probably they gave out a lot of loans. I don’t think the pandemic impacted on their current assets. But this growth could be as a result of the appreciation of their fixed assets in terms of building and lands. And the current interest rate might be of benefit to them also.”


Copyright PUNCH.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]

News6 mins ago

Greed factor: Why Nigerians are losing billions to get-rich-quick investment frauds

Local18 mins ago

Nigerian Army gathers influencers for “modern warfare” on social media

News28 mins ago

How N17bn Paris Club refund landed Obiano on EFCC’s watch list

Local42 mins ago

Why snakes enter toilets and natural remedies to scare them away from homes

News50 mins ago

Copyright infringement, defamation major problems in showbiz —Candy Mamalouk

Local1 hour ago

Why Nigerian founders attracted $900 million investment: Emefiele

Politics1 hour ago

Bianca Ojukwu sends ‘important’ message to Buhari over Nnamdi Kanu

News1 hour ago

Economic plan saved 1.3 million jobs, says FG

Local1 hour ago

IPOB agitation fuelled by marginalisation; Nnamdi Kanu should be released: Bianca Ojukwu

Politics1 hour ago

CONFIRMED: Tinubu contesting for president in 2023 – elder statesman

News2 hours ago

Railway police command CP moves to eject 200 families from Lagos barracks Monday

Local2 hours ago

Kwara United beat Oluyole Spikers; Kada Kings down ABM

News2 hours ago

I feel like committing suicide whenever I see photos of my two daughters kidnapped since 2009 – 64-year-old Rivers retiree

Local2 hours ago

NMA seeks establishment of Health Bank

News2 hours ago

Fuel hike: Nigerian students threaten nationwide shutdown

News2 hours ago

Weekly diaspora remittances rise to $100m, says Emefiele

Local3 hours ago

FG to begin mass demolition in FESTAC

News3 hours ago

Obaseki, stakeholders seek policies to attract gas investment

Entertainment3 hours ago

She tripped, fell, and lost consciousness outside the club – Obi Cubana’s club, Hustle & Bustle, narrates how woman died at the club as video evidence to dispute claims she was electrocuted is released

News3 hours ago

Tinubu visited me to seek support for presidential ambition – Yakasai

Local20 hours ago

Netflix invites Nigerians to scriptwriting programme

News22 hours ago

Rema faults DJ Neptune for releasing his song without permission

Health21 hours ago

The #1 Best Holiday Food to Eat for a Flat Belly, Says Dietitian

News12 hours ago

Uganda risks losing only international airport over Chinese loan

News21 hours ago

Accountability will remain PDP’s watchword, promises Ayu

Entertainment20 hours ago

Naira Marley’s sister, Subomi buys herself a Mercedes Benz GLK

World13 hours ago

India: Islamic scholar says Muslims should stay away from malls, Allah dislikes them, women look at men

Entertainment17 hours ago

“Does Google read minds too?” – Reality TV star, Erica left shocked by an experience in Dubai

Local10 hours ago

NDLEA arraigns two men for dealing in 789kg cannabis

Business News22 hours ago

Malawi, Mozambican Agree to Strengthen Economic Relations

World20 hours ago

California County Mandates Masks for Private Thanksgiving Celebrations at Home

Business News20 hours ago

Reminiscing on the Loss of a Friend, Dreams Deferred, and Bold New Beginnings

News23 hours ago

Amotekun rescues Fulani abducted by kinsmen, arrests one in Ondo

News21 hours ago

Court sentences four-year-old’s kidnapper to death in Akwa Ibom

Local21 hours ago

CBN gives N30 million to six students

News10 hours ago

Keyamo replies Reps, says 774,000 jobs successful, beneficiaries paid N40bn

Health20 hours ago

8 Ways To Avoid The Dreaded Thanksgiving Food Coma

Metro15 hours ago

World’s First Floating City Could Be Completed By 2025

Sports21 hours ago

Tottenham Manager Antonio Conte Is Starting To Understand The Situation At The Club

News19 hours ago

Ayade seeks to partner Britain on security, others