ETISALAT LOAN: 10 BANKS’ PROVISION FOR LOANS LOSS RISES BY 3%
source : http://www.eyesoflagos.com/2017/08/etisalat-loan-10-banks-provision-for.html

The involved 10 banks in 9mobile, the mobile operator formerly known as Etisalat Nigeria take over loans loss provision increased by three per cent to N206.1billion in the half year (H1) ended June 30, 2017, findings by EYES OF LAGOS has revealed.
The lender in half year of 2016 loans loss provision was N200 billion, to underline sound loan provisioning and disclosure practices for deposit money banks in the country over macro economy facing Nigeria.
Of the involved banks, the likes of Zenith Bank Plc, United Bank for Africa Plc, Ecobank Nigeria and Stanbic IBTC Holdings loan loss provision increased significantly while that of Access Bank Plc and Fidelity Bank Plc inched up marginally.
Guaranty Trust Bank Plc, FBN Holdings, Union Bank of Nigeria and FCMB involved in the Etisalat Nigeria loans deal recorded drop in loans loss provision in the period under review. Specifically, Zenith Bank loans loss provision increased by 198 per cent to N42.9 billion in H1 2017 from N14.23 billion in H1 2016.
Managing director/CEO of Zenith Bank Plc, Mr. Peter Amangbo, had revealed that his bank made a provision on 30 per cent on its loans to the network operator. Stanbic IBTC Holding loan loss provision increased by 65.1 per cent from N8.45 billion in H1 2016 to N13.95 billion in H1 2017 while Eco Bank Nigeria loan loss provision rose by 62.4 per cent to N42 billion ($138 million) from N25.99 ($85 million) billion in H1 2016.
UBA’s loans loss provision also increased significantly by 38.4 per cent to N9.4 billion from N6.8 billion in H1 2016. The lender recently said it has made a prudential provision on loans made to Etisalat Nigeria now. The lender did not give details of the provision but said it had a N38billion ($125million) exposure to 9mobile.
UBA said the exposure was secured, and part of a syndicated loan with 12 other banks extended to Etisalat Nigeria four years ago. For Access Bank and Fidelity, loan loss provision rose marginally by 1.5 per cent and 0.5 per cent in the half year under review.
Access Bank loan loss provision closed at N10.36 billion in H1 2017 from N10.2 billion in 2016 while Fidelity Bank loan loss provision that was at N4.8 billion in H1 2016 closed at N4.8 billion in H1 2017.
It will be recalled that group managing director of Access Bank, Herbert Wigwe had said banks
were reluctant to take provisions on loans to the power sector and the provisions the bank (as well as other members of the consortium) had made its loan to 9mobile. He hinted that the consortium of banks has taken impairment on the loan lent to the company.
They also made provisions for loans to companies that do business with the firm. The Access Bank boss said the affected banks had to take a collective impairment charge as far as 9Mobile was concerned in their 2017 half year results.
Wigwe, who put Access Bank’s exposure to 9Mobile at about N11 billion, said the bank made a provision of about 30 per cent on its loan to the network operator. More so, GTBank loan loss provision dropped significantly by 81 per cent to N7.2 billion from N37.5 billion in H1 2016.
First Bank of Nigeria Holdings loan loss dropped by 13.6 per cent to N60.4 billion from N69.9 billion in the corresponding period. Group managing director Mr. UK Eke, said, “Our focus on enhancing the quality of our loan book is reflected in a decline in non-performing loans, a reduction in our impairment charge following improvement in the asset quality outlook, and we will continue to prioritise this area through the rest of this year.”
In conclusion, Union Bank of Nigeria loan loss provision dropped by 38.8 per cent to N5.4 billion from N8.78 billion while FCMB loan loss decline by 26.1 per cent from N13.5 billion to N9.9 billion in H1 2017.

The guy below thou... just want to dedicate my ftc to all the Rams that are awaiting execution and the ones that have been executed already. Back to the matter, all I see and understand here is millions and billions .

I pray they settle in quickly so they can improve their services.... wedding MC

financial analysts n d house... pls help us out

muller101:

MrRhymes101:
g

centoke30:
O

Franco93:
k

What's all this??

their geepee tank of tea anyways happy new month to my nairaland pals

Number number everywhere, show me one person that read all that and i will show you a liar

I make more money than them




See my profile

https://www.facebook.com/girlieclothings/
This store is a front. They don't deliver any goods or have any to sell. I've been a victim and would hate to see anyone fall for their schemes. They have good pictures, seemingly attractive products and many followers. I fear many would still patronise them. Each time I make a post on their page, they of course block me.
#spreadtheword#saynotocrime#love

VictorAB:


What's all this??

ni


Water ni. Ara ile okan

VictorAB:


What's all this??

mind your business

VictorAB:


What's all this??

Lolsssssss, u no get joy oooooo

The average NL to understand

N206bn waste.

If 10,000 Nigerian youths who don't have any connects go to any of these nonsense so-called financial institutions each for N1m loans

(N10bn altogether)

to fund solid business ideas or ongoing ventures that will employ at least, one person each and grow our comatose economy, they'd either manage to turn down all 10,000 of them or request that they meet impossible requirements and peg the loan at 20% (or more) interest rate.

When the economy was so much better plus $1.2bn loan, etisalat still managed to make a loss. Now, in this economically demonic hBuharee era, they want to raise the dead with N206bn of uber-scarce funds. I better goan move my hard earned money from 3 out of these 10 banks where I have accounts to others that aren't, to avoid stories that touch.

Penny wise, pound foolish.

This is the cute thing about the private sector once you loosing it another person would take over, had it been etisalat was gov't owned it would just end up as wasted resources.

Hahaha.. And the Account Officers that booked these loans were most likely celebrated, promoted and rewarded for sealing this 'infallible' deal, the banks will have declared Billions as profit in their year end book to their shareholders...
Four years down the line, the deals have gone bad, the banks are already making heavy provisions for the loss, the account officers are either on recovery suspensions or outrightly sacked. Banking headache..

It's not easy lending money in Nigeria. Nothing is certain. What looks perfect today will just turn out to be nightmare tomorrow.

echelons:
Hahaha.. And the Account Officers that booked these loans were most likely celebrated, promoted and rewarded for sealing this 'infallible' deal, the banks will have declared Billions as profit in their year end book to their shareholders...
Four years down the line, the deals have gone bad, the banks are already making heavy provisions for the loss, the account officers are either on recovery suspensions or outrightly sacked. Banking headache..

It's not easy lending money in Nigeria. Nothing is certain. What looks perfect today will just turn out to be nightmare tomorrow.

It is not easy lending money anywhere but the banks in Nigeria make it extra difficult for their customers. And then, like good old karma, it later comes home to roost.

They think they're doing their customers not knowing that they're doing diasef.

echelons:
Hahaha.. And the Account Officers that booked these loans were most likely celebrated, promoted and rewarded for sealing this 'infallible' deal, the banks will have declared Billions as profit in their year end book to their shareholders...
Four years down the line, the deals have gone bad, the banks are already making heavy provisions for the loss, the account officers are either on recovery suspensions or outrightly sacked. Banking headache..

It's not easy lending money in Nigeria. Nothing is certain. What looks perfect today will just turn out to be nightmare tomorrow.

All i see above is just huge amount of money,i no understand anything. Mind to explain all that?

Franco93:
Whether Etisalat likes it or not, no one will call them 9Mobile if they like let them ask NEPA.
By the way, they should just lower their data charges to beat all these challenges, lest MTN dorminates

Do you still call Airtel Vodacom, Celtel or Zain?

echelons:
Hahaha.. And the Account Officers that booked these loans were most likely celebrated, promoted and rewarded for sealing this 'infallible' deal, the banks will have declared Billions as profit in their year end book to their shareholders...
Four years down the line, the deals have gone bad, the banks are already making heavy provisions for the loss, the account officers are either on recovery suspensions or outrightly sacked. Banking headache..

It's not easy lending money in Nigeria. Nothing is certain. What looks perfect today will just turn out to be nightmare tomorrow.

You're one of the few that actually read and understood the article.

For the neophytes:

Loan loss provision is an expense set aside as an allowance for uncollected loans and loan payments. This provision is used to cover a number of factors associated with potential loan losses including bad loans, customer defaults and renegotiated terms of a loan that incur lower than previously estimated payments.

Source: Investopedia

Why this story? The koko is that 9mobile is dying, they are committing suicide- highest call rate, higher data rate,.... Our mumu don do in this days when I don't even have time to use free wifi

Cmoyor:
financial analysts n d house... pls help us out

Dentux:
All i see above is just huge amount of money,i no understand anything. Mind to explain all that?

Its more of financial reporting than financial analysis. In order not to overstate assets in financial statements (because it will mislead users of the FS about the true position of the company), Companies that hold financial assets (e.g Loan given by the banks in this post) are expected to ascertain the recoverability of the fair value of the assets. In cases where for example it is expected that the borrower will default in interests or principal repayments, then there is an impairment model for the lender to write down the loan financial asset in its books.

This involves creating a provision account that reflects any expected credit loss that will occur. The provision account will serve as a reduction to the financial asset in the company's books. A company is expected to review its provision estimate as the expected credit losses probability changes. Thus in this case, because the chances that etisalat will default in its repayments has increased, the banks in question will increase the provision estimate of such possible defaults in order to write down the loan financial asset in their books.

seunlayi:
Why this story? The koko is that 9mobile is dying, they are committing suicide- highest call rate, higher data rate,.... Our mumu don do in this days when I don't even have time to use free wifi

Nah, etisalat is dying, 9mobile is a stronger company taking etisalat over to continue its business. It may even end up stronger that etisalat was. A typical example is access bank which is stronger than intercontinental bank was. For customers, this is none of your business, there is a tough competition in this industry already so if you don't like your 9mobile network, move to MTN or Airtel but dont try Glo.

haibe:


Nah, etisalat is dying, 9mobile is a stronger company taking etisalat over to continue its business. It may even end up stronger that etisalat was. A typical exam is access bank which is stronger than intercontinental bank was. For customers, this is none of your business, there is a tough competition in this industry already so if you don't like your 9mobile network, move to MTN or Airtel but dont try Glo.

We know your type

Franco93:
Whether Etisalat likes it or not, no one will call them 9Mobile if they like let them ask NEPA.
By the way, they should just lower their data charges to beat all these challenges, lest MTN dorminates

Unfortunately many will call them 9 mobile as Zain now Airtel if most Nigerians still call them Zain.MTN is dominating not because of price but because they have large customer bases and wide coverage. Glo did reduced their data price yet their subscriber base can beat MTN

Bitcoin1000:
I make more money than them




See my profile

Pls teach me how

haibe:





Its more of financial reporting than financial analysis. In order not to overstate assets in financial statements (because it will mislead users of the FS about the true position of the company), Companies that hold financial assets (e.g Loan given by the banks in this post) are expected to ascertain the recoverability of the fair value of the assets. In cases where for example it is expected that the borrower will default in interests or principal repayments, then there is an impairment model for the lender to write down the loan financial asset in its books.

This involves creating a provision account that reflects any expected credit loss that will occur. The provision account will serve as a reduction to the financial asset in the company's books. A company is expected to review its provision estimate as the expected credit losses probability changes. Thus in this case, because the chances that etisalat will default in its repayments has increased, the banks in question will increase the provision estimate of such possible defaults in order to write down the loan financial asset in their books.

thank you,God bless you. the Tori just UNDERSTAND ME. wetin be your job abeg?