According to the Nigeria Deposit Insurance Corporation’s annual report and statement of account, the total loan portfolio of the banking sector rose by 12.10% from ₦7.27trillion in 2011 to ₦8.15trillion in 2012,
In the report, the corporation noted that inspite of increase in the loan portfolio, the industry’s volume of non-performing loans declined significantly by ₦73.98billion or 20.55% from ₦360.07billion in 2011 to ₦286.09billion in 2012.
It also said the ratio of the NPLs to total loans of the 20 Deposit Money Banks dropped from 4.95% in 2011 to 3.51% in 2012, while that of the shareholders’ funds also declined from 17.135% to 14.34% during the same period.
According to the report, seven DMBs accounted for 80.73% of the total loans in 2012 as against 68.22% in 2011. The other sectors, it stated, accounted for ₦1.228trillion, representing 15.07% in 2012 as against 16.47% of the total credits extended by the DMBs in 2011. The other banks, accounted for the balance of 19.27%.
The top seven banks in terms of loan portfolio are First Bank, Zenith Bank Plc, United Bank for Africa Plc, Guaranty Trust Bank Plc, Access Bank Plc, EcobankPlc and Skye Bank Plc.
On sectoral allocation of credits, the report stated that out of the ₦8.15trillion loan, eight sectors got ₦6.93trillion or 84.93% of total credits to the economy as against 83.53% in the previous year.