We hereby present Agusto & Co.’s 2018 Banking Industry Report- the most current, comprehensive and detailed report on the banking Industry in Nigeria.
The report provides in-depth analysis of the Banking Industry’s operations, focusing on asset quality, earnings, capitalisation and liability generation. Our assessment of the Industry’s financial condition is based on figures and information published in the approved annual reports of 18 commercial banks and 5 merchant banks as at 31 December 2017. These banks collectively accounted for an estimated 96% of the Industry’s total assets as at 31 December 2017.
As the Nigerian economy fully recovers from the recession, the performance of the Banking Industry is expected to improve. Nonetheless, asset quality remains a pressing challenge and threat to profitability and capitalisation in the near term. Apart from persistent issues in the oil & gas sector which impacted the Industry’s loan book in the last two to three years, recent challenges in the telecommunications industry further exacerbated asset quality in 2017.
Our report provides a detailed analysis on concentration in the loan book of banks, the impact of the telecommunications exposure, earnings and capital base. In addition, we have analysed the regulatory environment and the effect on banks’ operations particularly with the recently introduced IFRS 9 accounting standards. Agusto & Co’s 2018 report captures trends and opportunities in the banking industry, including digitalisation which is expected to drive the industry’s overall performance in the medium to long term. Our report provides five years financial data on the Industry (2015-2019f).
Agusto & Co’s 2018 Banking Industry Report answers questions such as: