Feb 25 (Lagos) - The National Bureau of Statistics recently released Banking Sector data for 2018, with the report showing an overall decline in gross loans of 4% y/y in FY’18, despite a 2% q/q growth in loans in Q4’18. Asset quality in the fourth quarter also improved, with non-performing loans declining 24% y/y.
We recall that banks in 2018 began the implementation of IFRS 9 which saw banks write off huge charges against their net assets. Overall, average NPL ratio improved from 14.8% in Q4’17 to 11.7% in Q4’18 – below the regulatory benchmark of 15.0%.
Looking at sectoral distribution of loans, majority of growth originated from the Agriculture sector – up 16% y/y and 3% q/q in Q4’18 but accounting for only 4% of total banking credit. Meanwhile, banks remained averse to sectors such as Real Estate and ICT – with banking credit moderating 17% y/y and 30% y/y respectively.
Analysts at Vetiva research made the following changes to ratings of below stocks.
FLOURMILL BUY
NESTLE SELL
JBERGER BUY
PRESCO SELL
OKOMUOIL SELL
CCNN BUY
reporting for easykobo.com on Monday, Feb 25 2019 from Lagos, Nigeria
Source - analysts at Vetiva Capital Management Ltd in V.I, all views in this article are those of anlaysts at vetiva capital management ltd. Easykobo does not endorse or oppose any views expressed in this article.