Bad loans, naira volatility and other economic headwinds have made Ecobank International Incorporated, Union Bank Plc, First City Monument Bank Limited, Wema Bank Plc and Fidelity Bank Plc to post a combined 80 per cent decline in their annual profits.

The annual financial statements of the banks posted on the website of the Nigerian Stock Exchange have revealed.



The 2015 financial results of the five banks released in March this year showed that the profit before tax tumbled by 69 per cent to N77.65bn from N131.19bn in 2014.

Similarly, the combined profit after tax of the five banks fell from N107.279bn in 2014 to N59.73bn in 2015, indicating a decline of 79.59 per cent.

The N53.54bn fall in profit was attributed by many of the banks’ chief executive officers to high impairment charges on bad loans, foreign exchange volatility and other challenges facing the economy following the significant drop in the nation’s oil revenue due to the sharp fall in oil prices.

The economic crisis facing the country has affected the banking industry significantly. Out of the 15 banks quoted on the Nigerian Stock Exchange, 10 have released their 2015 annual financial statements as of the March 31, 2016 regulatory deadline set by the Central Bank of Nigeria for the submission of the statements.

Of the 10 banks that released their results, five posted sharp decline in profits, a major departure from the consistent rise in profits posted by almost all the banks in the country after the 2010 banking crisis.

The reports on the NSE website showed that Ecobank posted a PBT of N40bn in the 2015 financial year; Union Bank, N18.1bn; FCMB, N2.5bn; Fidelity Bank, N14bn; and Wema Bank, N3.046bn.

However, the five other banks that released their 2015 annual reports in March this year outperformed the market, posting increases in both their profit before tax and profit after tax.

This is despite the huge provisions for bad loans that most of them made in the 2015 financial year.

These are Guaranty Trust Bank Plc, United Bank for Africa Plc, Access Bank Plc, Sterling Bank Plc, and Zenith Bank Plc.

http://www.punchng.com/economic-crisis-five-banks-profit-drop-by-n54bn/

No solution in sight. Oil price isn't changing anytime sooner. Our policy makers are expired politicians that are just there for their family.

Buhari is busy touring the world.

I am both happy and sad. Happy because my banks no follow among the five. Sad because if nothing is done; these banks may go moribond or they will be acquired by other banks as their liabilities will lack viable assets to keep them afloat.

The results will be as follows:
*Branches with low customer turnouts, as many customers now feed from hand to mouth esp in rural areas, will be
closed.
*This will lead to job insecurity and resultant unemployment as the bank staff in the affected areas will be discharged of their jobs.
* The rural dwellers will have to tavel to the cities or developed suburbs for their transactions. This will consume more of their time, energy and money.
*Other unfavourable consequences the economists will explain better.

Therefore I am very sad that we are moving ten steps backward to 1983.
Buhari why na? must everybody become lean like you by 2019. What will become the fate of those of us who are lean naturally?

nnachukz:
No solution in sight. Oil price isn't changing anytime sooner. Our policy makers are expired politicians that are just there for their family.

Sunnycliff:
A New Sheriff is in town!

Our Bankers are kwarupt, so that's y
#voiceofthezombies

Joel3:
..and the APC lead administration keep playing news paper economics. which will not reflects in reality. If I were you i would not want to imagine how Nigeria is going to look like by 2019. the zombies are going to realized that just very soon.

So what should our policy makers do then? I am serious.

I await your answers.

Modified: The state of the mind of a good number of the people who criticize this administration on this thread shows they have no alternative solutions to offer...except derision.

With that kind of thinking, I am glad we did not keep the PDP in power...because these people have no ideas. They just know how to act like jesters.

As for me....I have my alternative. The government must make sure Nigeria gets off oil....because as this shows us...reliance on oil, or any other resource is not good for our economic health....at all. Banks must diversify too.

A New Sheriff is in town!

Our Bankers are kwarupt, so that's y
#voiceofthezombies

Springz:
Buhari is busy touring the world.

Signing deals and getting people to invest.....in your country.

Job loss looming...

First page!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I hope they bounce back

I guess that this should teach us Nigerians not to trust in oil.

Let us forget about oil....and go industrial. We have everything to gain by doing that.

Hmm, anyway, I'm not surprised seeing GT & Zenith

Na so........ Who the economy help?

Sad

no wonder ecobank is deducting my money indiscriminately

The funny thing is that government spending (of about 4 Billion Naira) on the purchase of "official super" SUVs for some group of idiots calling themselves senators, is competing with annual profit of some banks. SMH


We live in a country where our leaders have no dignity and shame.!

What the heck is wrong with Nigeria?

....hmmmm and to think that I was going to make a deposit into Eco this week....anyway....where is the 'EPP' crew. Banks are being served.

Buhari thank you ooo.

Nigeria shall be great. enemies of this nation shall not eat out of the good of the nation

The banks have been reliant on oil and government money. I think that they should diversify their portfolio.

At the same time....Nigeria is going to have to spend more on power, railways and educaiton, so that we can get off oil permanently. I hope we complete Mambilla.

Despite all their scamming!

..and the APC lead administration keep playing news paper economics. which will not reflects in reality. If I were you i would not want to imagine how Nigeria is going to look like by 2019. the zombies are going to realized that just very soon.

amtaken:
Buhari thank you ooo.

So Buhari is responsible for banks not being able to think beyond government business...

And by the way...what do you think should be done next.? What is your solution.?

TSA, a huge amount of money moved from the bank the CBN. Restrictions on Fx is also a factor.

ademega:
Nigeria shall be great. enemies of this nation shall not eat out of the good of the nation

No...banks as well as the people should stop looking for easy money.

That era is over.

Haaa..

k