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Q1’19: Banks’ assets rise by 7.5% to N38.4trn

By Babajide Komolafe

TOTAL assets and liabilities of banks rose by 7.5 percent, year-on-year, to N38.4 trillion in the first quarter of the year (Q1’19), against N35.7 trillion in the corresponding period of 2018.

The Central Bank of Nigeria, CBN, disclosed this in its April 2019 monthly economic report released last week, which also showed that the Q1’19 figure was 3.2 percent higher, quarter-on-quarter, when compared with N37.2 trillion recorded in the fourth quarter of 2018.

The report stated: “Total assets and liabilities of the banks amounted to N38.432 trillion at end-March 2019, showing a 0.1 per cent increase, compared with the level at the end of the preceding month. Funds were sourced, mainly, from mobilisation of time, savings and foreign currency deposits, and reduction in claims on the private sector and sale of unclassified assets. The funds were used mainly, for the reduction of unclassified liabilities, acquisition of foreign assets and accretion to reserves.

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“Banks’ credit to the domestic economy rose by 1.4 per cent to N20.802 trillion at end-March 2019, compared with the level at the end of the preceding month. The development was attributed to the rise in claims on the Federal Government and private sector. Total specified liquid assets of banks stood at N13.625 trillion at end-March 2019, representing 61.1 per cent of their total current liabilities. At that level, the liquidity ratio was 1.3 percentage point and 34.12 percentage points above the levels at the end of the preceding month and the stipulated minimum liquidity ratio of 30 percent, respectively. The loans-to-deposit ratio at 59.52 percent was 0.52 percentage point lower than the level at the end of the preceding month and was lower than the maximum ratio of 80 percent by 20.48 percentage points.

“At N31.696 trillion, aggregate credit to the domestic economy, on month-on-month basis, grew by 3.9 per cent at the end of the review month, compared with the increase of 6.5 per cent and 0.7 per cent at the end of the preceding month and the corresponding period of 2018, respectively. The development reflected, mainly, the 11.4 per cent rise in net claims on the Federal Government.

“Over the level at end-December 2018, net domestic credit grew by 15.0 per cent at the end of the review period, compared with the growth of 10.7 per cent and 5.3 per cent at the end of the preceding month and the corresponding period of 2018, respectively. The development was due to the increase of 59.1 per cent and 5.5 per cent in net claims on the Federal Government and claims on the private sector, respectively.”

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