Stanbic IBTC non-performing loans rise to N25bn – Newstrends
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Stanbic IBTC non-performing loans rise to N25bn

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Non-Performing Loans of Stanbic IBTC Holding Plc have risen by N5bn in the first six months of this year to N25.27bn.

The loans rose from N20.338bn in December 2021 to N25.27bn in June 2022. This indicates a rise from 1.87 per cent in December to 2.32 per cent in June this year, latest data from the bank have shown.

Non-Performing Loans refer to the amount of borrowed funds whose scheduled payments have not been met by the debtors for a period of time usually 90 or 180 days, depending on terms.

Data from the bank’s half year financial statement for 2022 revealed that the bank had a total performing loans of N1.06tn and an NPL of N20.34bn by the end of last year.

Although the figures of the performing loans remained at N1.06tn in June 2022, the NPLs grew to N25.27bn.

The Central Bank of Nigeria exposure drafts on prudential guidelines for financial institutions said, “The NPL limit banks are required to manage their credit risk effectively. To this end, all banks are to ensure that the level of NPLs in relation to gross loans does not exceed five per cent.”

Stanbic IBTC’s NPL is within regulatory limits, but experts believe that there could be a surge in loan defaults in coming months after the CBN increased Nigeria’s benchmark interest rates.

The Governor of the Central Bank of Nigeria, Godwin Emefiele, had revealed a “reduction in the NPL ratio to 4.95 per cent in June 2022, compared with 5.7 per cent in June 2021.”

The apex bank’s MPC wants the bank to sustain its tight prudential regime to ensure that the NPL ratio is brought well below its prudential benchmark.

A 2018 CBN report had revealed that the “drivers of NPLs vary across the two categories of banks, but, weighted average lending rate is a vital macroeconomic driver of NPLs.”

The CBN recently hiked the Monetary Policy Rate to 14 per cent, a move aimed at reducing inflationary pressure, but experts believe it could worsen the NPLs among banks.

This implies that banks will restructure their loans and review upward to reflect the new rate.

Nigeria’s prime lending rate is 12.29 per cent, while maximum lending rate is currently 27.61 per cent, but it is expected to move upwards.

 

 

 

 

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Chery Showroom unveiling @ Ikeja City Mall creates excitement

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2nd L-R: Mr. Oladipo Dada, Centre Manager of Ikeja City Mall, Mr. Liang Long, CEO, Carloha Global Office, Mike Ochonma, President, Nigeria Auto Journalists Association (NAJA) and Mr.Sola Adigun, Managing Director of Carloha Nigeria , the owners of Chery farnchise in Nigeria, and Mr. Henry Chimezie George, the Managing Director of HD Motors, during the cutting of ribbon at the launch of the Chery ultra-modern and smart Showroom, inside the Ikeja Mall, Lagos on Thursday, July 4, 2024.

Chery Showroom unveiling @ Ikeja City Mall creates excitement 

Chery smart showroom has now become a brighter feature of the Ikeja City Mall, a magnificent shopping mall located at Alausa, near the Lagos State Government secretariat.

The unveiling of the ultra-modern car showroom was performed at the mall last week Thursday by Carloha Nigeria, the sole importer and franchise holder of Chery.

Speaking on the benefits of having the Chery showroom at the Ikeja City Mall, Sales and Marketing Director at Carloha, Mr. Joseph Omokhapue, said this would bring automotive solutions to its target audience in Ikeja community.

He also noted that it would help them to maximise the proximity to the Lagos State Government House, as well as harness the business opportunity therein.

“The showroom at Ikeja City Mall is a hub for automobile lovers to explore the advantage of Chery innovative technology,” he stated.

He also spoke on Carloha’s programme of making vehicle ownership easy and affordable.

For instance, Omokhapue urged car buyers to “deposit a N5 million naira on any Chery vehicle in the month of July, and get 5% discount on any Chery vehicle of choice, from Tiggo 8 pro, Tiggo 4 pro, Tiggo 2 pro and Arrizo 5 respectively.

“Carloha also offers six years free service as well as six years warranty or 200,000 kilometres, whichever comes first.”

Carloha described the unveiling as another day of celebration and a huge success, with customers, partners, and stakeholders in the automotive business gracing the occasion.

Guests were treated to a first look at the sleek and stylish Chery vehicles on display in the showroom.

The showroom was buzzed with excitement as attendees mingled and enjoyed refreshments while learning more about the features that Chery has to offer.

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NNPCL rolls out 12 new CNG stations in Lagos, Abuja

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NNPCL rolls out 12 new CNG stations in Lagos, Abuja

The Nigerian National Petroleum Company Ltd (NNPCL), on Thursday commissioned 12 compressed natural gas (CNG) stations to reduce transportation cost in the country.

Tinubu had on May 29, last year announced the removal of subsidy on petrol, a development that made the price rise from N197 per liter to N690 per liter.

The newly built CNG stations, which had six in Lagos and six in Abuja, were commissioned by the Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo.

Together, the Abuja and Lagos stations have a combined dispensing capacity of over 6 million standard cubic feet (MMSCF) of CNG per day, serving approximately 15,000 vehicles daily.

The newly built CNG stations, which had six in Lagos and six in Abuja, were commissioned by the Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo.

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Together, the Abuja and Lagos stations have a combined dispensing capacity of over 6 million standard cubic feet (MMSCF) of CNG per day, serving approximately 15,000 vehicles daily.

Also speaking at the occasion, the managing director, NNPC Retail Limited, Mr Huub Stokman, revealed that in the next one year, NNPC Retail would have launched over 100 CNG sites, including 16 NNPC gas marketing and NIPCO gas JV sites.

“CNG provides Nigeria with affordable alternatives to existing available fuel products. It will be about 40 per cent cheaper than petrol in Nigeria; and with continued investments, it will become a significant part of our energy mix,” Stokman added.

On his part, the chairman of the NNPC Board of Directors, Chief Pius Akinyelure, said increased CNG adoption would foster economic benefits by reducing fuel cost for consumers and businesses alike.

Under the presidential CNG initiative, NNPC and NIPCO gas entered into a strategic partnership for expansion of CNG stations across Nigeria. Under this partnership, 35 CNG stations are to be constructed across Nigeria.

These CNG stations feature advanced reciprocating and hydraulic booster compressors, ensuring a dispensing pressure of 200 bar for CNG vehicles.

The CNG is supplied to stations in Abuja and Lagos via virtual transportation from mother stations in Ajaokuta, Kogi State and lbafo in Ogun state.

 

NNPCL rolls out 12 new CNG stations in Lagos, Abuja

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Nigerian Railway Corporation suspends Warri-Itakpe train after derailment

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Nigerian Railway Corporation suspends Warri-Itakpe train after derailment

The Nigerian Railway Corporation (NRC) has announced the suspension of its train services from Warri in Delta State to Itakpe in Kogi State, starting from Friday, July 5th.

The suspension is due to an obstruction on the track, according to the NRC.

This is contained in a notice sent to customers titled “Public Announcement” on Friday, saying that the agency would likely resume operations on Monday, July 8, 2024.

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It read, “This is to officially notify our esteemed passengers that Warri-Itakpe Train will not run today being Friday, 5th July 2024 due to the obstruction we have on our track.

“We shall resume our normal train services on Monday 8th July 2024. Passengers who already booked their tickets online will be refunded.”

“All inconveniences is highly regretted. Thank you,” the statement added.

The train reportedly derailed on Thursday, July 4 at about 7.15pm.

A passenger on the train said it wobbled along its track at several locations and derailed.

It was however learnt that the NRC team was working to fix the problem.

Nigerian Railway Corporation suspends Warri-Itakpe train after derailment

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