With the growing lending to private and individual customers, a total of 13 banks have generated N5.96trillion interest income from loans to customers between 2020 and 2018.
This has demonstrated banks’ drive to support the Central Bank of Nigeria (CBN) aggressively lending to support the real sector and boosting banks’ earnings.
Nigerian Banks with branches in Africa and Europe have developed a variety of products in recent years to make it easier for customers to obtain loans with double-digit interest rate.
The 13 banks comprise of six Domestic Systemically Important Banks (D-SIBs) or Tier-1 banks and seven Tier-2 banks operating in Nigeria, Africa, and some European countries.
The six D-SIBs are Access Bank Plc, Ecobank Transnational Incorporated (ETI), Zenith Bank Plc, Guaranty Trust Holdings Plc (GTCO), United Bank for Africa Plc (UBA), and FBN Holdings Plc.
Others are Fidelity Bank Plc, Union Bank of Nigeria Plc, FCMB Group Plc, Wema Bank Plc, Sterling Bank Plc, Unity Bank Plc and Stanbic IBTC Holdings.
According to THISDAY investigation, Access Bank, followed by ETI and Zenith Bank led others in interest generated from loans to customers in the three years under review.
In the last three years, Access Bank has generated N898.01billion interest lending to private and individual customers, while ETI’s interest from loans to customers hits N838.33billion in the period under review.
Both Access Bank and ETI are pan-African banks with branches in over 15 African countries with lending to customers above the N3trillion mark.
However, Zenith Bank in the three years under review generated N756.5billion interest lending to customers, followed by FBN Holdings with N750.19billion generated as interest from loans to customers.
Other Tier-1 banks that generated interest income from loans to customers are, UBA- N627.95billion and GTCO- N550.5billion.As observed by THISDAY, Unity Bank generated the lowest interest from loans to customers, while Fidelity bank has aggressively grown its interest income from lending to customers.Specifically, Fidelity bank in three years generated N370.7billion in interest from loans to customers, while Unity Bank’s income from loans to customers stood at N2.23billion.Others are: FCMB gGoup with N300.66billion interest income from loans to customers, while UBN generated N227.93billion as interest income from loans to customers.Sterling bank-N275.99billion; Stanbic IBTC Holdings – N191.71billion and Wema Bank-N166.55billion generated as interest income from loans to customers between 2020 and 2018.Meanwhile, Nigerian banks’ lending rates as published by the CBN shows two different classes of loan pricing, which are prime lending rates, charged creditworthy customers, and maximum lending rates, […]