Digital Banking and Financial Performance Review slide image

Digital Banking and Financial Performance Review

Risk Asset Mix The Group maintained a well-distributed Loan book with a continuous focus on quality across all target markets and select business segments. Exposure to Midstream Oil & Gas Sector was reduced from 14% to 9% was a result of scheduled repayments by obligors in this sector. Additional drawdowns on Anchor Borrower's Funds (Intervention Loans) translated to an increase in Agriculture sector contribution from 1% to 8%. Growth in Retail loans was 1%. Exchange rate movement from N435/$1 in Fy-2021 to N461.5/$1 in FY-2022 led to an increase of the contribution from the Oil and Gas sector to 30% from 28%. The Group continues to make conscious efforts to reduce the concentration risk. 81.6% of the exposures in the Oil & Gas sector are USD denominated and in the Upstream Oil and Gas. Total restructured loans stood at #280.5bn, constituting 16.9% of the Gross Loan portfolio. Of the total restructured loans, 86.6% relate to two (2) Obligors - Aiteo and WEMPCO. All restructured loans have been classified appropriately as Stage 2 Facilities. Gross Loans by Industry Upstream Oil and Gas December 31, 2022 30% 14% Manufacturing Midstream Oil and Gas Individual 9% 13% Information, Telecoms. and Transport. 8% Government 4% Others* 5% Agriculture 8% Capital Market and Fin. Institutions 3% General Commerce 4% Construction and Real Estate 1% Downstream Oil and Gas Education 2% 0.3% * Includes Fashion & Design, Religious Organizations, Hospitality, Clubs, co-operative societies, Unions, Engineering services, etc. December 31, 2021 28% 14% 14% 12% 8% 4% 5% 7% 3% 2% 2% 0.5% 0.5% 24
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