Banks Mortgage Portfolio Rises by 44.2% to N32.47trn
Main Deposit Cash Banks quoted within the Nigerian Change Restricted (NGX) have grown their mortgage portfolio by 44.23 % within the 9 months ended September 30, 2023.
The banks embody: Zenith Financial institution Plc, FBN Holdings Plc, Entry Financial institution Plc, Warranty Belief Holding Firm (GTCo) Plc, United Financial institution for Africa (UBA) Plc, Stanbic IBTC Holdings Plc, Constancy Financial institution Plc, Sterling Financial institution Plc, Wema Financial institution Plc, and FCMB Group Plc.
Particularly, the banks grew their mortgage books to N32.47 trillion from N22.51 trillion within the corresponding interval in 2022.
Evaluation of the banks’ mortgage place for the interval confirmed that tier-1 banks recorded the most important each in share and precise worth phrases.
United Financial institution for Africa led with a 62 % development in its mortgage ebook to N4.94 trillion from N3.05 trillion within the corresponding interval in 2022, adopted by a tier-2 financial institution – Stanbic IBTC – with a 55.5 % enhance to N1.763 trillion from N1.134 trillion within the 9 month interval in 2022.
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Zenith Financial institution Plc ranked third, rising its mortgage ebook by 49 % to N5.78 trillion from N3.88 trillion in 2022; FBN Holdings Plc positioned fourth with a 48.5 % enhance to N5.35 trillion from N3.6 trillion, whereas Entry Financial institution Plc grew its mortgage ebook to N6.702 trillion from N3.62 trillion, representing a forty five % enhance.
Others are Wema Financial institution, which recorded a 43.4 % enhance to N661 billion from N461 billion; FCMB Group Plc up 34.2% to N1.59billion ; Unity Financial institution went up by 33.2% to N2.65trillion ; GTCo Plc up 20.4% to N2.22 trillion and Sterling Financial institution Plc with 9.3 % enhance to N819 billion.
Commenting on the numerous enhance within the banks’ mortgage portfolio, David Adonri, Vice Chairman, Highcap securities, attributed it to the depreciation in Naira, which he mentioned could have warranted elevated borrowing by importers to fulfill their import payments.
He mentioned: “I believe that many of the loans went for public borrowing because the banks are the very best lenders to the federal government both by their funding in public debt or direct loans. Once more, resulting from depreciation of the Naira, a number of importers may additionally have elevated borrowing to fulfill their import payments.
“The outlook for banks is promising contemplating the large monetary leverage they obtained from the current international alternate (foreign exchange) windfall. They’ve sufficient conflict chest to extend their danger belongings.”