Bank NPLs (8) - Technical Analysis on Banks' NPLs - NPL Ratio

Saturday, May 23, 2020 07:00 AM / by Debtors Africa/ Header Image Credit:   EcoGraphics

C.1 Access Bank

Chart 58: Access Bank NPL Ratio (%) 2009-2019

Source: NSE, Access Bank, Proshare Research

Access Bank had a downward trending NPL ratio between 2009 and 2019. Its highest non-performing loan ratio of +9.3% was recorded in Q4 2011 while its lowest non-performing loan ratio of +1.7% was recorded in Q4 2015. Access Bank's asset quality deteriorated in Q4 2019, as its NPL ratio was above CBN's benchmark of +5%. Its NPL ratio increased to +5.8% in Q4 2019 from +2.5% in Q4 2018 (see Chart 58).

C.2 UBA

Chart 59: UBA NPL (%) 2009-2019

Source: NSE, UBA, Proshare Research

UBA's NPL ratio reduced to +5.3% in Q4 2019 from +6.45% in Q4 2018. UBA had a downward trending NPL ratio between 2009 and 2019. Its highest non-performing loan ratio of +8.8% was recorded in Q4 2010 while its lowest non-performing loan ratio of +1.2% was recorded in Q4 2013.  There has been a decline in UBA's asset quality as its NPL ratio in 2018 and 2019 was +6.45% and +5.3% respectively which is above the CBN's threshold of +5.0% (see Chart 59).

C.3 Zenith Bank

Chart 60: Zenith Bank NPL Ratio (%) 2009-2019

Source: NSE, Zenith Bank, Proshare Research

Zenith Bank's NPL ratio reduced to +4.3% in Q4 2019 from +4.98% in Q4 2018. Zenith Bank had a downward trending NPL ratio between 2009 and 2019. Its highest non-performing loan ratio of +6.26% was recorded in Q4 2009 while it recorded its lowest NPL ratio of +1.63% in Q4 2015. Zenith Bank has had good assets quality in the past five years as its NPL ratio ranged between +1.63% and +4.98% which is below CBN threshold of +5% (see Chart 60).

C.4 ETI

Chart 61: ETI NPL Ratio (%) 2009-2019

Source: NSE, ETI, Proshare Research

ETI NPL ratio increased from +9.8% in Q4 2018 to +9.9% in Q4 2019. ETI had a downward trending NPL ratio between 2009 and 2019. It recorded its highest NPL ratio of +16% in Q4 2009 while it recorded its lowest NPL ratio of +4.4% in Q4 2014. ETI has had declining asset quality, as its NPL ratio has ranged between +8.2% and +9.6% in the past four years which is above CBN's threshold of +5% NPL ratio (see Chart 61).

C.5 Wema Bank

Chart 62: Wema Bank NPL (%) 2009-2019

Source: NSE, Wema Bank, Proshare Research

Wema Bank NPL ratio increased from +4.98% in Q4 2018 to +7.38% in Q4 2019. Wema Bank had a downward trending NPL ratio between 2009 and 2019. There has been a significant decline in Wema Bank's NPL ratio during the period under review, as its NPL ratio had declined from +74% recorded in Q4 2009 to +7.38% in Q4 2019. It recorded its lowest NPL ratio of +2.49% in Q4 2014. Wema Bank's asset quality deteriorated in Q4 2019, as its NPL ratio was above CBN's threshold of +5.0%. (see Chart 62).

C.6 UBN

Chart 63: UBN NPL (%) 2011-2019

Source: NSE, UBN, Proshare Research

UBN NPL ratio declined to +5.8% in Q4 2019 from +8.7% in Q4 2018. UBN had an upward trending NPL ratio between 2011 and 2019. UBN recorded its highest NPL ratio of +19.8% in Q4 2017 while it recorded its lowest NPL ratio of +5.1% in Q4 2014 and Q4 2011. UBN does not have good assets quality as its NPL ratio in the past four years has fluctuated between +5.8% and +19.8% which is above the CBN's NPL ratio threshold of +5.0% (see Chart 63).

C.7 FCMB

Chart 64: FCMB NPL (%) 2009-2019

Source: NSE, FCMB, Proshare Research

FCMB NPL ratio declined to +3.7% in Q4 2019 from +5.9% in Q4 2018. FCMB had a downward trending NPL ratio between 2009 and 2019. FCMB recorded its highest non-performing loan ratio of +9% in Q4 2009 while it recorded its lowest non-performing loan ratio of +2.5% in Q4 2012. FCMB's recorded an improvement in its asset quality as its NPL ratio declined from +5.9% in Q4 2018 to +3.7% in Q4 2019 which is below CBN's  threshold of +5.0% (see Chart 64).

C.8 Fidelity Bank

Chart 65: Fidelity Bank NPL (%) 2009-2019

Source: NSE, Fidelity Bank, Proshare Research

Fidelity Bank recorded a decline in its NPL ratio from +5.7% in Q4 2018 to +3.3% in Q4 2018. Fidelity bank had a downward trending NPL ratio between 2009 and 2019. Its highest non-performing loan ratio of +47.5% was recorded in Q4 2009 while its lowest non-performing loan ratio of +3.3% was recorded in Q4 2019. Fidelity bank recorded an improvement in its asset quality, as its NPL ratio fell from +5.7% in Q4 2018 to +3.3% in Q4 2019, which is lower than the CBN's  threshold of an NPL ratio of +5.0% (see Chart 65).

C.9. Sterling Bank

Chart 66: Sterling Bank NPL (%) 2009-2019

Source: NSE, Sterling Bank, Proshare Research

Sterling Bank NPL ratio fell to +2.2% in Q4 2019 from +8.7% in Q4 2018. Sterling Bank had a downward trending NPL ratio between 2009 and 2019. It recorded its highest NPL ratio of +23.6% in Q4 2009 while it recorded its lowest NPL ratio of +2.1% in Q4 2013. It recorded a significant improvement in its asset quality, as its NPL ratio declined to +2.2% in Q4 2019 from +8.7% in Q4 2018, which is below CBN's threshold of an NPL ratio of +5.0% (see Chart 66).

C.10. GT Bank

Chart 67: GT Bank NPL Ratio (%) 2009-2019

Source: NSE, GT Bank, Proshare Research

GT Bank's NPL ratio declined to +6.5% in Q4 2019 from +7.3% in Q4 2018. GT Bank had a downward trending NPL ratio between 2009 and 2019. It's highest NPL ratio of +11.84% was recorded in Q4 2009 while it recorded its lowest NPL ratio of +3.15% in Q4 2012. GT Bank does not have a good asset quality as its NPL ratio in 2018 and 2019 was +7.3% and +6.5% respectively which is above CBN's threshold of +5.0% NPL ratio (see Chart 67).

C.11. Stanbic IBTC Bank

Chart 68: Stanbic IBTC Bank NPL Ratio (%) 2009-2019

Source: NSE, Stanbic Bank, Proshare Research

Stanbic IBTC Bank NPL ratio was +3.9% in Q4 2019. Stanbic IBTC Bank had a downward trending NPL ratio between 2009 and 2019. It recorded its highest NPL ratio of +18.8% in Q4 2019 while its lowest NPL ratio of +4.0% was recorded in Q4 2018.  Stanbic IBTC Bank recorded an improvement in its asset quality as its NPL ratio declined from +8.7% in Q4 2017 to +3.9% in Q4 2019 which is below CBN's threshold of NPL ratio of +5.0% (see Chart 68).

C.12. FBNH

Chart 69: FBNH NPL Ratio (%) 2009-2019

Source: NSE, FBNH, Proshare Research

FBNH NPL ratio declined significantly to +9.9% in Q4 2019 from +24.7% in Q4 2018. FBNH had an upward trending NPL ratio between 2009 and 2019. It recorded its highest NPL ratio of +25.9% in Q4 2018 while its lowest NPL ratio of +2.6% in Q4 2011 and Q4 2012. Despite the significant decline in its NPL ratio to +9.9% in Q4 2019 from +24.7% in Q4 2018, its NPL ratio was still higher CBN's threshold of +5.0% (see Chart 69). 

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