The impact of coronavirus is yet to be felt in full, but it is more than obvious that the Nigerian banking system have had its own share of the negative impact of the pandemic going by the figures from the half year ended June 2020 results of banks.
The released results show the devastating impacts of the lockdowns, closed businesses, and lost jobs as a result of the Covid-19 pandemic on the level of bad loan provisioning or credit impairment charges made by nine Nigerian banks
The nine banks Access, GTBank, Zenith, Fidelity, FCMB, FBN, Ecobank, UBA and Stanbic IBTC provided an aggregate amount of over N144 billion for non-performing loans (NPL) in the first 6 months of 2020. An increase of over N77 billion above the Credit Impairment Charges for the nine banks in the same period of 2019.
Fidelity Bank and Stanbic IBTC Bank are two of the nine banks that moved from recoveries of bad loans in H1 2019 to huge provisioning for bad loans in H1 2020. Fidelity recovered N5.3 billion in the first half of 2019 but lost N7.8 billion in the same period in 2020. While Stanbic IBTC recovered about N600 million in bad loans in 2019 half year but lost N6.4 billion to bad loans provisioning in same period in 2020.
GTBank, UBA and FCMB though grew their delinquent loan provisioning Year-on-Year (YonY) for the half year ended June 2020 but the three banks maintained single digit figures. GTBank grew its Impairment Charges by N4.59 billion representing 211% growth from N2.18 billion to N6.77 billion in H1 2020.
UBA had Impairment Charges of N7.81 billion an increase of N4.69 billion representing a 150% increase over the N3.12 billion recorded in half year of 2019. While FCMB grew its Impairment Charges by N2.26 billion representing an increase of 41% over the figure recorded for the same period in H1 2019.
Access, Zenith, Ecobank and FirstBank recorded double digit Credit Impairment Charges for half year ended June 2020. While Access Bank moved from single to double digit figure YonY with N11.6 billion growth in Impairment Charges. Others grew by N10.2 billion, N15.8 billion and N8.6 billion for Zenith, Ecobank and FirstBank respectively