{"id":26659,"date":"2018-09-24T20:21:51","date_gmt":"2018-09-24T19:21:51","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=26659"},"modified":"2018-09-24T20:40:10","modified_gmt":"2018-09-24T19:40:10","slug":"loan-risks-remain-in-nigerian-banks-moodys","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/","title":{"rendered":"Loan Risks Remain In Nigerian Banks\u2014Moody\u2019s"},"content":{"rendered":"

–Says Skye Bank Takeover Good For Sector<\/p>\n

Tayo Olanipekun<\/p>\n

Nigerian banks’ earnings will come under pressure and capital metrics will decline marginally over the next 12 to 18 months, Moody\u2019s has said.<\/p>\n

It noted in its latest Nigeria Banking System Outlook that the sector\u2019s asset quality will remain weak with deterioration in loan performance that is marginal as operating conditions slowly improve.<\/p>\n

Moody identified concentrations of loans to single names like the case with the telecommunication company, 9mobile, as well as to single sectors, as factors that will continue to aggravate asset risk for the banks.<\/p>\n

\u201cNonperforming loans (NPLs) will increase marginally in a delayed response to sluggish economic growth in 2017. We expect banking system NPLs to range between 15.5 per cent and 18 per cent over our outlook period,\u201d the body noted.<\/p>\n

This is as Moody\u2019s Vice President and Banking Analyst, Akintunde Majekodunmi, in Lagos on Monday, applauded the Apex Bank\u2019s withdrawal of Skye Bank\u2019s operating license, saying it will remove systemic risks for the Nigerian banking system.<\/p>\n

\u201cTaking away Skye Bank Plc\u2019s license and transferring its assets and liabilities to Polaris Bank, a newly created bridge bank, will limit the threat of contagion to Nigeria\u2019s banking system from the failure of a Systemically Important Bank; this shift is credit positive in that it will contain systemic risks for the Nigerian banking system as a whole,\u201d Majekodunmi said.<\/p>

\r\n
Advertisement<\/div>\r\n\t\t\t\t\t\t\t<\/a>\r\n \r\n\t\t\t\t\t\t\t<\/div>\n

About the nation\u2019s economy, it forecasts a continued recovery in real GDP growth over the next two years, up from 0.8 per cent last year with lending growth rise of around 10 per cent after a 15.4 per cent contraction in 2017. <\/p>\n

The rating body, also said that nation\u2019s foreign currency liquidity risks will continue to stabilise over the same period, supported by recovering global oil prices and a more liberal foreign exchange market.<\/p>\n

It noted that though it is declining, inflation remains high but will continue to
\ngradually subside as liquidity in foreign-exchange markets continues to stabilise.<\/p>\n

\u201cWe publicly rate seven banks, which represent 68 per cent of total assets in the Nigerian banking system. The average (asset-weighted) local currency deposit rating for Nigerian banks is B2, with a baseline credit assessment (BCA) of b2, in line with our average BCA for Sub-Saharan African banks,\u201d said Moody\u2019s. <\/p>\n

The rated banks are: Zenith Bank plc, b2 Aa3.ng\/NG-1 B2 B3 Stable; First Bank of Nigeria Limited, b3 A2.ng\/NG-1 B2 B3 Negative; United Bank for Africa Plc b2 A1.ng\/NG-1 B2 B3 Stable, and Access Bank Plc, b2 A1.ng\/NG-1 B2 B3 Stable.<\/p>\n

Others are Guaranty Trust Bank plc, b2 Aa3.ng\/NG-1 B2 B3 Stable; Union Bank of Nigeria plc, b3 A2.ng\/NG-1 B2 B3 Stable, and Sterling Bank Plc,b3 A2.ng\/NG-1 B2 B3 Stable.<\/p>\n","protected":false},"excerpt":{"rendered":"

–Says Skye Bank Takeover Good For Sector Tayo Olanipekun Nigerian banks’ earnings will come under pressure and capital metrics will decline marginally over the next 12 to 18 months, Moody\u2019s has said. It noted in its latest Nigeria Banking System Outlook that the sector\u2019s asset quality will remain weak with deterioration in loan performance that …<\/p>\n","protected":false},"author":9,"featured_media":26660,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,17],"tags":[793,4596,734,2182,4594,550,2371,4595,727,627],"coauthors":[2387],"class_list":["post-26659","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","category-news","tag-access-bank","tag-akintunde-majekodunmi","tag-first-bank","tag-guarantee-trust-bank","tag-moodys","tag-skye-bank","tag-sterling-bank-plc","tag-system-outlook","tag-uba","tag-zenith-bank"],"yoast_head":"\nLoan Risks Remain In Nigerian Banks\u2014Moody\u2019s - National Wire<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Loan Risks Remain In Nigerian Banks\u2014Moody\u2019s - National Wire\" \/>\n<meta property=\"og:description\" content=\"–Says Skye Bank Takeover Good For Sector Tayo Olanipekun Nigerian banks’ earnings will come under pressure and capital metrics will decline marginally over the next 12 to 18 months, Moody\u2019s has said. It noted in its latest Nigeria Banking System Outlook that the sector\u2019s asset quality will remain weak with deterioration in loan performance that …\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/\" \/>\n<meta property=\"og:site_name\" content=\"National Wire\" \/>\n<meta property=\"article:published_time\" content=\"2018-09-24T19:21:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-09-24T19:40:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2018\/09\/images-11.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"443\" \/>\n\t<meta property=\"og:image:height\" content=\"332\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tayo Olanipekun\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/#website\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/\",\"name\":\"National Wire\",\"description\":\"About Nigerians, Nigerian Business and Other Stories\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/nationalwire.com.ng\/sub\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/#primaryimage\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2018\/09\/images-11.jpg\",\"contentUrl\":\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2018\/09\/images-11.jpg\",\"width\":443,\"height\":332},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/#webpage\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/\",\"name\":\"Loan Risks Remain In Nigerian Banks\u2014Moody\u2019s - National Wire\",\"isPartOf\":{\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/#primaryimage\"},\"datePublished\":\"2018-09-24T19:21:51+00:00\",\"dateModified\":\"2018-09-24T19:40:10+00:00\",\"author\":{\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/#\/schema\/person\/582979d5818ce23344612600787b0dc1\"},\"breadcrumb\":{\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/nationalwire.com.ng\/sub\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Loan Risks Remain In Nigerian Banks\u2014Moody\u2019s\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/#\/schema\/person\/582979d5818ce23344612600787b0dc1\",\"name\":\"Tayo Olanipekun\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/author\/tayo\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Loan Risks Remain In Nigerian Banks\u2014Moody\u2019s - National Wire","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/","og_locale":"en_US","og_type":"article","og_title":"Loan Risks Remain In Nigerian Banks\u2014Moody\u2019s - National Wire","og_description":"–Says Skye Bank Takeover Good For Sector Tayo Olanipekun Nigerian banks’ earnings will come under pressure and capital metrics will decline marginally over the next 12 to 18 months, Moody\u2019s has said. It noted in its latest Nigeria Banking System Outlook that the sector\u2019s asset quality will remain weak with deterioration in loan performance that …","og_url":"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/","og_site_name":"National Wire","article_published_time":"2018-09-24T19:21:51+00:00","article_modified_time":"2018-09-24T19:40:10+00:00","og_image":[{"width":443,"height":332,"url":"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2018\/09\/images-11.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Written by":"Tayo Olanipekun","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/nationalwire.com.ng\/sub\/#website","url":"https:\/\/nationalwire.com.ng\/sub\/","name":"National Wire","description":"About Nigerians, Nigerian Business and Other Stories","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/nationalwire.com.ng\/sub\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/#primaryimage","url":"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2018\/09\/images-11.jpg","contentUrl":"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2018\/09\/images-11.jpg","width":443,"height":332},{"@type":"WebPage","@id":"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/#webpage","url":"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/","name":"Loan Risks Remain In Nigerian Banks\u2014Moody\u2019s - National Wire","isPartOf":{"@id":"https:\/\/nationalwire.com.ng\/sub\/#website"},"primaryImageOfPage":{"@id":"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/#primaryimage"},"datePublished":"2018-09-24T19:21:51+00:00","dateModified":"2018-09-24T19:40:10+00:00","author":{"@id":"https:\/\/nationalwire.com.ng\/sub\/#\/schema\/person\/582979d5818ce23344612600787b0dc1"},"breadcrumb":{"@id":"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/nationalwire.com.ng\/sub\/loan-risks-remain-in-nigerian-banks-moodys\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/nationalwire.com.ng\/sub\/"},{"@type":"ListItem","position":2,"name":"Loan Risks Remain In Nigerian Banks\u2014Moody\u2019s"}]},{"@type":"Person","@id":"https:\/\/nationalwire.com.ng\/sub\/#\/schema\/person\/582979d5818ce23344612600787b0dc1","name":"Tayo Olanipekun","url":"https:\/\/nationalwire.com.ng\/sub\/author\/tayo\/"}]}},"_links":{"self":[{"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/posts\/26659","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/comments?post=26659"}],"version-history":[{"count":3,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/posts\/26659\/revisions"}],"predecessor-version":[{"id":26664,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/posts\/26659\/revisions\/26664"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/media\/26660"}],"wp:attachment":[{"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/media?parent=26659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/categories?post=26659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/tags?post=26659"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/coauthors?post=26659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}