By Jeph Ajobaju, Chief Copy Editor
United Bank for Africa (UBA) loaned out N178.1 billion in the first quarter of 2021 (Q1 2021) to top the list of banks that granted a total N689.5 billion loans, in a race for customers in which Stanbic IBTC coasted home second, and Fidelity Bank third.
Nine banks granted more than N20 billion loan each in response to pressure by the Central Bank of Nigeria (CBN) for greater customer access to facilities to stimulate economic growth.
Expansionary policies and growth plan are being pitched by the CBN to revive the economy and wipe out Covid impact on Africa’s largest economy.
Data compiled by Nairametrics Research shows that gross loans and advances by Nigerian banks rose from N17.06 trillion in Q4 2020 to N17.75 trillion in Q1 2021.
This translates as new N689.53 billion loan granted consumers in Q1 2021 but is 33.3 per cent less than the N1.03 trillion advanced in Q1 2020.
Banks recorded 10.4 per cent decline in interest income in Q1 2021, probably attributed to CBN loosening interest rate benchmark to increase credit access.
The CBN reduced the MPR from about 14 per cent in 2020 to 11.5 per cent in Q1 2021, which was retained at its Monetary Policy Meeting (MPC) meeting in May.
A decline in aggregate loans could indicate a collection of previous loans rather than none issuance of new loans, explains Nairametrics in its analysis of loans and advances in Q1 2021 against interest income.
First-tier banks (FUGAZ) faced stiff competition from rivals Stanbic, Fidelity, and FCMB, a major reason why only two tier-1 banks made it to the top five.
Here are the top lenders as articulated by Nairametrics:
UBA (N178.1b)
UBA led the pack with new N178.08 billion loans to customers in Q1 2021. Its last reported financial statement shows gross loans at N2.73 trillion Q1 2021 against N2.55 trillion in Q4 2020, an increase of 7 per cent.
Its loan disbursement in Q1 2021 was less than the N195.3 billion in Q4 2020, and also dropped from N109.1 billion in Q1 2020 to N108.6 billion in Q1 2021.
Stanbic IBTC (N104.9b)
Stanbic IBTC offered the second-highest gross loans and advances in Q1 2021 with N105 billion.
Gross loans to customers rose from N625.14 billion Q4 2020 to N730.14 billion in Q1 2021. Disbursed loans increased 27.7 per cent compared to N82.2 billion recorded in Q4 2020.
However, interest income dropped 23.5 per cent from N27.46 billion in Q1 2020 to N21.01 billion in Q1 2021.
Fidelity Bank (N100.1b)
Fidelity Bank ranked third with N100.15 billion loans and advances to customers in Q1 2021.
Aggregate loan rose from N1.33 trillion in Q1 2020 to N1.43 trillion in Q1 2021, a staggering 157.8 per cent increase against N38.85 billion Q1 2020.
However, its interest income declined 7.4 per cent from N42.3 billion in Q1 2020 to N39.15 billion in Q1 2021.
FBN Holdings (N82.31b)
FBN Holdings increased its loan offerings by N82.31 billion in Q1 2021 when gross loans stood at N2.3 trillion against N2.22 trillion in Q1 2020.
Lending to customers dropped 58.6 per cent compared to N198.9 billion in Q1 2020, and interest income dipped 25.3 per cent to N78.36 billion in Q1 2021.
FCMB (N63.31b)
FCMB lent N63.3 billion in Q1 2021, which shot total loans to N886.09 billion.
Advances saw 30.9 per cent increase against N48.38 billion in Q1 2020.
But this did not translate into an increase in interest income as the bank posted N33.03 billion as interest income which was 13.8 per cent less than N38.33 billion in Q1 2020.
Loan advances by others
Zenith Bank (N62.45 billion)
Access Bank (N38.11 billion)
Sterling Bank (N35.65 billion)
Unity Bank (N21.14 billion)
