SIGN IN YOUR ACCOUNT TO HAVE ACCESS TO DIFFERENT FEATURES

CREATE AN ACCOUNT FORGOT YOUR PASSWORD?

FORGOT YOUR DETAILS?

AAH, WAIT, I REMEMBER NOW!

CREATE ACCOUNT

ALREADY HAVE AN ACCOUNT?

Magnartis Finance & Investment Limited

  • LOGIN
  • Home
  • About
    • About Us
    • Management Team
    • Directors
  • Services
    • Stockbroking
    • Portfolio Management
    • Corporate Finance
    • Advisory Services
  • Projects
  • Download
  • Contact
  • Open an account
  • Home
  • Fitch predicts growth for Nigerian, sub-Saharan banks
  • Capital Market News
  • Fitch predicts growth for Nigerian, sub-Saharan banks
 

Fitch predicts growth for Nigerian, sub-Saharan banks

Fitch predicts growth for Nigerian, sub-Saharan banks

by magna / Saturday, 25 April 2015 / Published in Capital Market News

By Sola Alabadan – Lagos

 

In consideration of the buoyant non-oil and services sectors, as well as private consumption, that are holding up credit demand in Nigeria, Fitch Ratings Limited says banks in the country should witness growth in 2015.

According to statement issued by the rating agency in London on Thursday, growth in sub-Saharan Africa should provide favourable conditions for the region’s banks in 2015, despite the decline in commodity prices.

Credit growth is set to expand because there is strong demand for infrastructure financing and the private sector is buoyant. These are likely to offset the threats from weaker commodity prices and heightened political risk and uncertainty, Fitch Ratings noted.

The agency stated that “Even banks in oil exporting countries, where low oil prices might be expected to trigger loan contraction, are experiencing continued credit demand.

“In Nigeria, buoyant non-oil and services sectors, plus private consumption, are holding up credit demand. Loan growth reached 25% in 2014.”

Fitch Ratings also assigned MPI ‘1’ scores to both “Nigeria, where demand for new lending is strong” and “South Africa, where loan growth expectations are low”. This indicates low systemic risk potential.

Credit expansion is one measure included in Fitch’s macro-prudential indicators (MPI), specifically designed to highlight heightened potential banking sector risks.

MPI scores of ‘3’, which highlight the greatest systemic risk potential, were assigned to relatively few sub-Saharan countries, namely Angola, Ethiopia and Ghana. MPI ‘2’ scores were assigned to Cote d’Ivoire, Congo, Kenya, Lesotho and Mozambique.

Fitch’s Director, Middle East and Africa Financial Institutions, Mahin Dissanayake, stated that “In Angola, public sector investment remains a priority and banks are finding new takers for loans in government entities and ministries. Sub-Saharan banks tend to be awash with deposits; loan/deposit ratios for banking sectors in Fitch-rated countries average 78 percent, which is low by international standards.

“This reflects both limited opportunities for profitable lending and asset structures that tend to be heavily invested in high yielding government securities, rather than loans. Despite plentiful deposits, credit growth can still be constrained because short-term deposits are not well suited to funding longer-term loans.

 

Source : Independent

About magna

What you can read next

ITF Borne Out Of Desire To Fill Operational Gaps In Govt. Agencies – Katugwa
EPL: Mourihno, Guardiola battle ready for Manchester derby
Gulf shares fall over oil price

Market Capitalization

[visualizer id="161"]

Newsletter Subscription


 

About Us

Magnartis Finance & Investment Ltd (“Magnartis”) is a Dealing Member of The Nigerian Stock Exchange with expertise in Stockbroking and Trade Execution Services.

Download

  • FGN Savings Bond Subscription Form
  • Mandate For Ebonus
  • Cscs Clients Authorization Form For Change Of Bank
  • Cscs Client Bank Update Form
  • Account Opening Form KYC

Research

  • Daily Price List
  • Daily Market Summary
  • Weekly Market Summary
  • Special Reports

Contact Info

16, Boyle Street, Onikan, Lagos, Nigeria

Office Number:
01-4538066

E-mail:
info@magnartis.com

  • GET SOCIAL

© 2014 Magnartis Finance & Investment Limited. All Right Reserved

TOP