http://nairametrics.com/here-is-why-devaluation-could-be-catastrophic-for-first-bank/

Another round of devaluation of the naira will compound the woes of First Bank Plc as over 50 percent of the lender’s spiralling non performing loans (NPLs) are dollar denominated, analysts at Ren Cap say.

First Bank has suffered a significant drop in profit caused by huge impairments on financial assets otherwise known as loan loss expense.

NPLs increased to 22 percent in the first quarter of the year, fuelled by exposure to the oil and gas.

This figure crosses the 5 percent threshold questioning the risk management strategy and portfolio management of the bank.

The bank’s risk assets managers failed to diversify or minimise risk and maximise return.

A possible devaluation of the currency is inevitable given the continued depletion of the external reserves and rising inflation.


“Another related asset quality concern is that 56% of the bank’s NPLs are FX, which implies that if devaluation occurs, coverage levels would fall, with the bank needing to set aside more naira earnings to cover these greenback NPLs. In light of this, it is quite difficult for us to get comfortable with a coverage ratio of 37 percent”, said analysts at Rencap.

Hmmm op dnt cause panic withdrawals ooo

I trust First bank sha

In zombies voice, If banks begin to pack up, Nigeria can go back to trade by barter

Trade by barter is good for the economy

I doubt if Nigeria can recover from this self inflicted meltdown from medieval command and control buhari.

How zombies will respond to this news:

Zombies: First bank can fold up if they want,it will allow the other banks the chance to grow

Zombies: who First bank don epp

Zombies: we don't need so many big banks at this time.

Zombies: First Bank ws pro-PDP,they should fold up joor

So disgusting that something that should generate intellectual discussion is being turned to a PDP/APC

like first bank like every other bank in Nigeria - they only invest where the profit will be astronomical without stress.

they all refused to invest in the youths - they all failed to encourage entrepreneurship. People with great ideas that will amount to great profits in future where denied loans. they where all interested in giving loans to mighty companies with or without insurance.

The day of reckoning is here for all the financial institutions. like the President said during inauguration - in his government, you reap what you sow, its time for hard-work to be appreciated.

First bank and the rest of them can still retrace their steps before its too late for them.

Buhari is returning us to the stone age. This is only the beginning, the Bubu man is hell bent on destroying the achievements and giant stride we made under Dr Jonathan.

When Zombies Rule the Innocent Suffers.

Nigeria don spoil finish oo, if first bank fold which bank won't fold again.

Rose2014:

In zombies voice, If banks begin to pack up, Nigeria can go back to trade by barter

Trade by barter is good for the economy

TippyTop:
Buhari is returning us to the stone age.

Almajiri1:
I doubt if Nigeria can recover from this self inflicted meltdown from medieval command and control buhari.

ebig21:
Nigeria voted for the Dullard, they should deal with it

As expected from the sons of perdition.
This is their normal trait, wail unnecessarily, shout Daura President, just to gain cheap popularity and garner likes from their co wailers and hence paid from their paymaster.
Is it not you and your wailing wailers co-mourners suffering from the hangover of an election lost over a year ago that have been fighting tooth and nail calling for the devaluation of the naira with Fayose being at the helm of affairs of being the Chief Mourner?
When we were warning you wailers that many banks will pack up, many States will go bankrupt and many Firms will retrench if the Naira is devalued since many of their debts are in dollar denomination and from foreign lenders mostly eurobond, imf lond, loans from world banks which they will need extra 60% Naira to service this foreign debt you start calling BUBu Daura President, you started calling our honourable Minister
of Fin. puppet and compare her with aunty Ngozi voodoo economic who was a monumental failure and call we the patriotic citizens Zombies abi.
Now the day don done you started singing a different song and trying to shift the goal post.

Nigeria voted for the Dullard, they should deal with it

eyeview:
How zombies will respond to this news:

Zombies: First bank can fold up if they want,it will allow the other banks the chance to grow

Zombies: who First bank don epp

Zombies: we don't need so many big banks at this time.

Zombies: First Bank ws pro-PDP,they should fold up joor

a

ok

Honestly speaking, the present economy situation of this country has beyond the knowledge of PMB nd his team.

It will affect other banks not only first bank.

Devaluing the naira isn't gonna affect only first bank. Personally, I think Nigeria is in a phase where it gets worse before it starts getting better.

Wow. This had better be a joke. First bank going bankrupt,would just officially crash the economy and we might never get out of the mess.

If this is the case now,what's the way out still have my money in there or? Abeg make person talk sharp sharp o!

Poor management.

Economist in this house, can someone pls summarize this

Pls make una no vex, did anybody see liar Mohammed today?

Great
-imagine some of them have gone to court to challenge the constitutionality of TSA

BTW, who these banks help with interest rate of 23%

How can they go bankrupt? Do you how much deductions are carried out from their customers accounts every month end? First bank deducts about 450 naira from my account monthly, all in name of VAT, TAX, ATM maintenance! Account Maintenance, SMS charge and all.

What is ATM maintenance charge ? when my card is always with me and I paid 1050 to get the card from them.

I so much dislike first bank and all nigerian banks as a whole because they are so fraudulent and heartless.

Ghen Ghen Ghen

.who dey eep.



Dey reduce fuel price

First bank truly needs to employ fresh executive trainnes there are good contract staff in other banks waiting to show their self. If they can do it in other banks with low brands then imagine what will happen if they come into first bank. Retail is always the best

Clueless government

If First bank goes bankrupt, I wonder what will happen to almost if not all the banks in Nigeria.

On my way to firstbank to withdraw my #2100