Skip to main content

CBN SAYS 8 NIGERIAN Banks are to BIG to Fall

By

First Bank of Nigeria Limited, Guaranty Trust Bank Plc (GTBank), Zenith Bank Plc, United Bank for Africa Plc (UBA), Access Bank Plc, Skye Bank Plc, Ecobank Nigeria and Diamond Bank Plc have been designated by the Central Bank of Nigeria (CBN), as “too big to fail”, owing to the fact that their failure could pose a systemic risk to the banking industry and the larger economy.

The eight banks alone account for 75 per cent of the banking sector in terms of earnings, profitability assets, customer deposits and branch networks.

The CBN, it was learnt, has therefore adopted a more robust regulatory regime to monitor and scrutinise the eight banks, in order to ensure that they are healthy.

The central bank has also asked the eight banks to increase their capital base in order to give them a buffer against internal and exogenous shocks.

Confirming this development, Deputy Governor (Operations), CBN, Mr. Tunde Lemo, described the financial institutions as systemically important because of their size.

Lemo pointed out that any bank that accounts for five per cent of the banking system is systemically important.

“What that means is that we have to take a closer look at them. It doesn’t mean that they are weak, it is just that we have to focus more attention on them because, God forbid, if something happens to any of them, it may affect the entire system,” Lemo said.

Asked about the capital base that the respective banks are expected to have, the CBN deputy governor said: “It is not that they were asked to raise their capital base, it is just that when an institution is designated as systemically important, it is required to have more capital.”

For Zenith Bank, its recently released results for nine months ending September 30, 2013 showed that its profit after tax stood at N64 billion with loans and advances of N1.1 trillion. The bank also reported gross earnings of N255 billion at the end of September 2013, up by 11 per cent from the N229 billion recorded in the corresponding period in 2012.

Zenith Bank’s total market capitalisation on the Nigerian Stock Exchange (NSE) stood at N675.024 billion yesterday.

Also, GTBank’s profit after tax stood at N69.24 billion at the end of September 2013, as against N63.734 billion earned in the same period in 2012. GTBank’s total assets also stood at N1.875 trillion, compared to the N1.73 trillion as at December 2012. Its share price on the NSE closed at N25.99 per share yesterday, giving it a market capitalisation of N764.916 billion.

In the same vein, UBA’s unaudited results for the nine months ending September 30, 2013 also revealed that its profit after tax climbed to N37.37 billion. With a market capitalisation of N257.255 billion on the NSE, its share price closed at N7.80 per share.

For Access Bank, its recently released unaudited nine-month results showed gross earnings of N154 billion at the end of September 2013. Its profit before tax also stood at N35 billion. Access Bank’s market capitalisation on the NSE was N213.269 billion yesterday, while its shares closed at N9.32 per share.

Skye Bank Plc’s gross earnings rose to N102 billion at the end of September 2013, while its profit after tax stood at N11.650 billion.
Diamond Bank also posted a profit before tax of N25.6 billion, while its total assets stood at N1.377 trillion at the end of September 2013.

First Bank of Nigeria Limited is yet to release its third quarter results because of its holding company structure.

Thisday
Labels:

Comments

Post a Comment

Popular posts from this blog

DO YOU WANT TO BECOME A MASON IN NIGERIA

By
 After all i have said about this fraternity if you are still interested in becoming a mason there are just simply ways in which you can do that, but inspite of my post i am neither encouraging nor discouraging you all i am doing is just to let you know more about this frat and there's more to come about those who have joined, the so called stars like jay-z, kanye west etc i guess its just 7 simple ways to join and off you go  Are there things you want to accomplish in your life? Are there ways you want to enrich yourself? Do you enjoy being with people you like and respect? As a Freemason, you’ll find friendship and fraternity. You’ll develop life skills like self-confidence, leadership, and effective communication. You’ll learn to work as part of a team  and to better yourself as you help others. Think about taking the first step into becoming a Mason. It is widely thought that one must be invited to become a Freemason or that Freemasonry is so exclusive as to be beyond the
240 comments
Read more

13 Places You Should Visit In before the end of 2013

By
  Wikimedia Commons It's more than halfway through 2013 and even though the summer is winding down, there's still plenty of time to book a trip to a great destination. We looked at major developments, cultural trends, and global festivals to find the hottest places to travel around the world in 2013. There are vast untouched landscapes that offer incredible outdoor experiences, cities that are experiencing a cultural rebirth, and up-and-coming destinations that offer great deals and few tourists. London, England Since Kate Middleton gave birth to Prince George Alexander Louis last week , England has been in the national spotlight, and is expecting a tourism boost. But that's not the only reason to visit the UK right now. The 2012 Summer Olympics in London came and went, but many of the buildings, restaurants, hotels and venues that sprouted up to accommodate the hundreds of thousands of visitors who came for the Olympics still stand. Several new building
Post a Comment
Read more

Samsung reportedly close to releasing Glass competitor — and Google’s involved

By
This one is definitely a rumor, but its source is reliable enough to warrant a little speculation. Analyst and blogger  Eldar Murtazin  tweeted a rather definite message this week that Samsung is “developing [its] own version of Google Glass. We will see it (probably) around April – May under Gear Glass brand.” Given that Google’s own version of Glass is not expected to hit the mass market until early 2014, Samsung’s Glass competitor could very well race Google’s to market. That might seem like a nightmare for Google, which has invested heavily in Glass and is no doubt planning for a strong event launch, but as was pointed out in a CNet article, the use of the word “Glass” implies an official partnership. Samsung is known for its aggressive branding and Google would likely raise legal concerns regardless, so it’s unlikely the brand Gear Glass would be used without a partnership. Does Google even want to sell Glass, or does it just want you wearing face-screens? If Goog
Post a Comment
Read more