Zenith Bank, others record NPL ratio below CBN mark

With the banking sector Non-Performing Loan (NPL) closing in 2021 at 4.85 per cent, the likes of Zenith Bank Plc, Access Bank Plc, United Bank for Africa Plc (UBA), among others have maintained a ratio below the Central Bank of Nigeria (CBN) statutory limit.

Sterling Bank Plc, FCMB Group Plc, and Stanbic IBTC Holdings Plc are among the other banks that have kept their NPL ratios below the CBN’s requirements.

Meanwhile, Guaranty Trust Holding Company Plc (GTCO) revealed NPLs that were higher than the banking regulator’s requirements.

Following the CBN’s forbearance in restructuring loan exposure to important industries, analysts predicted that NPL ratios in the banking industry will stay constant in 2021.

The performance of the banks revealed that Sterling Bank reported a 0.70 percent NPL ratio in 2021, compared to 1.90 percent in 2020, and Stanbic IBTC Holdings recorded 2.10 percent NPL in 2021, compared to 4.00 percent in 2020.