2018 Banking Industry Report

Overview of the Agusto & Co 2018 Banking Report

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).

  • Provides an overview of the Nigerian business environment and its impact on the Industry
  • Analyses the market share of all the banks across different indicators.
  • Provides an assessment of the changing dynamics in the Industry’s payment systems and overall digitalisation drive
  • Ranks each bank across key parameters on asset quality, profitability, capitalisation and liquidity
  • Tracks key regulations, Industry trends and opportunities
  • Provides 5 years financial information on the Industry (2015-2019f)

Agusto & Co’s 2018 Banking Industry Report answers questions such as:

  • What is the size of the banking industry in Nigeria?
  • How is the banking Industry recouping following the country’s exit from a recession?
  • What are the current asset quality issues and what is the outlook in the short term?
  • How have recent regulatory changes impacted performance in the last 12 months and what are the implications for banks?
  • What opportunities are available to banks to increase market share?
  • What is the overall outlook for the Industry in the near term?