02 November 2018 : In its draft H1’18 economic report, the Central Bank of Nigeria (CBN) revealed that although the banking industry improved in the first six months of 2018, three banks failed to meet the 30% minimum liquidity ratio requirement. The report noted that, at the half-way mark of 2018, the industry average capital adequacy ratio (CAR) stood at 12.08%, up from 10.23% at the end of 2017. An improvement in asset quality, measured by the non-performing loans to total loans ratio (NPL ratio) stood at 12.45%, compared to 14.80% at year end. The overall improvement in the banking sector reflects the effect of higher oil prices, slightly improved macroeconomic conditions and strong oversight by the apex bank. Nevertheless, Nigeria’s banking sector is not out of the woods yet as a number of key players still suffer from asset quality and capital adequacy deficiencies. 

Reporting for EasyKobo on Friday , 02 November 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited