Nigeria's banks grow total assets by 10% to N41.4 trillion in 12 months

The total assets of the 27 deposit money banks rose by 10 percent, year-on-year to N41.4 trillion in the 12 months ending October 2019.

The growth however represents a slight decline when compared to 11 percent growth recorded in the 12 months ending October 2018.

The Central Bank of Nigeria (CBN) disclosed this in its November Economic report which revealed that total assets and liabilities of banks rose to N41.425 trillion as at October 31st 2019 from N37.338 trillion as at October 31st 2018, representing 10 percent growth.

The report stated: "Total assets and liabilities of commercial banks amounted to N41.4 trillion at end-October 2019, showing 4.6 per cent increase, compared with the level at the end of the preceding month. Funds were sourced, mainly, from increase in unclassified liabilities, and the mobilisation of time, savings and foreign currency deposits. The funds were used, mainly, to acquire unclassified assets, foreign assets and to boost reserves.

"Commercial banks' credit to the domestic economy rose by 0.6 per cent to N22.3 trillion at end-October 2019, compared with the level at the end of the preceding month. The development was attributed to the rise in its claims on the private sector.

"Total specified liquid assets of banks stood at N14.3 trillion at end October 2019, representing 59.3 per cent of their total current liabilities. At that level, the liquidity ratio was 0.9 percentage point lower than the level at the end of the preceding month, and was 29.30 percentage points above the stipulated minimum liquidity ratio of 30.0 per cent.

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"The loan-to-deposit ratio, at 61.9 per cent, was 0.3 percentage point below the level at the end of the preceding month and was lower than the maximum ratio of 80.0 per cent by 18.10 percentage points."