27.2 C
Wednesday, February 21, 2024

FCMB’s Loan Loss Surges 186% to N47.5bn in Q3

Must read

- Advertisement -
Listen now

FCMB Group Plc’s net impairment loss on loans and advances surged by 186% to N47.5 billion in the 9-month period to September 2023, compared to a year ago, a sign that weak economic growth, high inflation and tough reforms that have tripled fuel prices in 2023 is beginning to bite.

Loans and advances to customers increased 33% to N1.59 trillion for the period, compared to year end at December 2022.

Net impairment loss on total financial assets increased Year-on-Year to N57.0 billion, for the period ended September 2023, from N18.7 billion in the prior year resulting in a growth in cost of risk to 3.9%.

FCMB’s customer base grew by 15.4% YoY to 12 million customers from 10.4 million for the period ended September 2023.

The central bank of Nigeria (CBN) has urged lenders to recapitalise their balance sheets in the face of high inflation, currency weakness and slow economic growth.

“We must make difficult decisions regarding capital adequacy,” Governor Olayemi Cardoso said in a speech at the Chartered Institute of Bankers of Nigeria’s annual dinner in Lagos.

“As the first steps, the central bank will be directing banks to increase their capital,” he said.

Nigeria’s annual inflation rate rose to 27.33 per cent in October from 26.72 per cent in the previous month, the National Bureau of Statistics (NBS) said.

Nigeria’s Gross Domestic Product (GDP) grew by a tepid 2.54% (year-on-year) in real terms in the third quarter (Q3) of 2023.

Banks have also been hit by a 40% devaluation of the currency after newly elected President Bola Tinubu moved to a more market friendly set of reforms.

Get More of our proprietary news and analysis as MoneyCentral is now on WhatsApp Channels 🚀 Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -spot_img

Latest article