Home News Despite Depositors’ Fear, Nigerian Banks Safe, Sound- NDIC

Despite Depositors’ Fear, Nigerian Banks Safe, Sound- NDIC

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Some workers protesting outside one of the Banks.
The Nigerian Deposit Insurance Corporation (NDIC) released its 2015 reports on Monday in which the corporation adjudged all the deposit money banks as safe and sound, despite the fear of some customers that there may be a run in in the sector.
The report on the financial conditions of the DMBs stated that the total assets of all the banks grew marginally by 1.36 percent, total loans and advances rose by 5.56 percent, shareholders’ funds, unimpaired by losses, increased by 14.02 percent, while capital adequacy ratio stood at 17.66 percent.
However, total deposit liabilities declined by 2.83 percent, unaudited profit decreased by 2.02 percent while non-performing loans increased by 82.87 percent in 2015.
According to the report, the banking industry capital base remains strong, the Capital Adequacy Ratio (CAR) of banking industry was 17.66 percent in 2015 compared with 15.92 percent in 2014, but exceeded the minimum threshold of 10 percent and 15 percent for national and international banks respectively.
The report also indicated that only two DMBs had CAR below the prescribed threshold of 10 percent in 2015.
The NDIC report on earnings and profitability of the banks said the banking industry profitability deteriorated. It said the unaudited Profit Before Tax (PBT) of the banking industry stood at N588.86bn as at 31st of December 2015, representing a decrease of 2.02 percent over N601.02bn reported as at 31st December 2014.
Meanwhile, more frauds were recorded in the banking sector. A total of 12,279 fraud cases were reported in the year under review.
The highest percentage of forgery and fraud cases in the banks, according to NDIC, were from e-banking while bank staff fraud cases fell to 425 in 2015, as against 465 in 2014. Most of the frauds were carried out by temporary staff of the banks, according to the report.
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