Digital Banking and Financial Performance Review slide image

Digital Banking and Financial Performance Review

Asset Quality The Group's IFRS 9 Stage 3 loans closed at 5.2% in FY-2022 from 6.0% in FY 2021. With Retail and Others emerged as Sectors with the highest NPL - 22.1% and 20.5%. IFRS 9 Stage 3 Loans improved to N102.8bn in FY-2022 from N113.9bn in FY-2021, primarily driven by the deleveraging of Ghana and Kenya's Loan books via the realization of pledged collaterals. IFRS 9 Balance Sheet Impairment Allowance for Stage 3/Lifetime Credit Impaired exposures closed at N54.9bn representing 53.4% coverage of Loans in this classification. In aggregate terms (including Regulatory Risk Reserves of N93.9bn), the Group has adequate coverage of 175.5% for its IFRS 9 Stage 3 loans /NPLs. This position is consistent with the Group's plan to maintain 100% coverage of its NPLs. NPL and Coverage 119.60% 0.34% 105.10% 126.40% 150.40% 175.50% 7.30% 6.53% 6.39% 6.04% 5.19% 0.34% | | | 1.18% 0.50% 0.50% NPL by Industry Others OIL - MIDSTREAM OIL DOWNSTREAM Manufacturing 20.50% 27.40% 8.60% 10.45% 10.76% 8.60% 7.24% 6.10% Info. Telecoms & Transport. 3.76% 3.40% Individual General Commerce 22.10% 21.20% 13.60% 11.30% Education Construction & Real Estate 1.77% 1.50% 8:87% Capital Market & Fin. Institution Agriculture 0.68% 0.50% 0.47% 2.80% Dec-18 Dec-19 Dec-20 Cost of Risk ■NPL/Loans NPL by Currency 89% 11% FY 2022 FY 2021 * Includes Engineering services, Fashion & Design, Religious Organizations, Hospitality, Clubs, co-operative societies, Unions, etc. - FCY - LCY Dec-21 Dec-22 Coverage ratio 25
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