CEM REPORT, FINANCE | The total deposit and assets of banks in Nigeria increased by 4.9 percent and 2.9 percent to close the first half of 2022 at 68.79 percent and 66.69 percent respectively.
This is as total assets of OFIs, excluding BDCs, increased by 8.10 percent to N5,646.65 billion at the end-June 2022
According to the Central bank of Nigeria (CBN) in its CBN’s Financial Stability Report June 2022 Edition published on Friday, revealed that the increase was accounted for by six Nigerian banks.
The bank said this is consistent with the Herfindahl Hirschman Indices (HHI) of 954.53 and 933.89, for deposits and assets.
“This was consistent with the Herfindahl Hirschman Indices (HHI) of 954.53 and 933.89, for deposits and assets, respectively, compared with 847.43 for deposits and 854.24 for assets in end-December 2021.”
In comparison with the previous half of the year ending December 2021, total deposits and assets increased by 4.9 percent compared to 63.88 percent and 2.9 percent from 63.79 percent respectively while N5,223.66 billion was recorded for total assets of OFIs, excluding BDCs.
Additional the CBN report noted that the shares of individual banks ranged from 0.07 to 15.56 percent in deposits and 0.33 to 17.04 percent in assets
Although CBN did not mention the names of the six banks the report stated that the broad money supply (M3) grew by 10.00% to N48,890.24 billion in end-June 2022, noting that growth in transferable deposits was due, largely, to the increase in transferable deposits of commercial and merchant banks, while the increase in other deposits was hinged on the 13.40 percent rise in foreign currency deposits citing that Narrow money supply (M1) rose by 12.69 percent to N20,347.59 billion at end-June 2022, compared with N18,055.86 billion at end-December 2021.
“The development reflected an increase in domestic claims (17.88 percent), arising from 31.61 and 12.44 percent growth in net claims on the central government and claims on ‘other’ sectors, respectively.
“The increase in claims on ‘other’ sectors reflected improved credit delivery to the real economy. The growth in total monetary liabilities was due, mainly, to the rise in transferable deposits (16.61 percent) and other deposits (8.19 percent).”
CBN noted that investments increased by 21.24% to N1,231.45 billion, in end-June 2022, from N1,015.71 billion in end-December 2021, while cash and bank balance increased by 16.04 percent to N263.82 billion, from N227.37 billion.
Net loans and advances and placements increased by 3.19% and 5.58% to N3,023.61 billion and N708.54 billion in end-June 2022, from N2,930.06 billion and N671.07 billion.