The lenders are: First Bank of Nigeria (FBN) Holdings, First City Monument Bank (FCMB), Union Bank, Sterling Bank, Diamond Bank and Zenith Bank Plc and Guaranty Trust Bank (GTB).
For instance, First Bank of Nigeria Holdings recorded a N6.4billion (17.9per cent) decline in PAT from N35.9billion booked in 2016 to N29.5billion in the first six months of 2017. FCMB’s PAT declined by N3billion to N12.7billion in the first half of 2017 from N15.7 billion in the corresponding period of 2016. Union Bank’s PAT slightly improved to N9.2 billion from N8.8 billion recorded last year partly because it booked a 36.8 per cent decrease in impairment charges and the lender did not give out too much of its deposits as loans.
Sterling Bank’s PAT decreased to N3.8 billion in H1: 2017 from N4billion recorded in 2016. In the same way, Diamond Bank recorded slight improvement in its PAT from N9.1billion in H1: 2016 to N9.3billion in H1: 2017, while Zenith Bank recorded most impressive PAT of N75.3billion in the first half of 2017, compared to N35.5billion recorded in 2016. Next on the positive note is Guaranty Trust Bank which recorded a 16.6 per cent increase in PAT from N71.8 billion last year to N 83.7 billion this year.
Although, other banks are putting finishing touches to their half year financial performance in readiness for their release this week, Nigerian Tribune analysis of results for the seven lenders showed that their impairment charges/write backs increased to N151.8billion in the first half of 2017. This compares with N166.1billion recorded in the corresponding period of 2016, representing an increase of N14.3billion.
Impairment charges are loans that may no longer be recovered especially those that had more exposures to upstream oil sub-sector, power sector and foreign currency loans.
However, when impairments are used for assets, it describes a reduction in the recoverable amount of such assets below their book value.
and then