Investor Presentaiton

Reforms Support Stability and Growth in the Banking Sector Bank Lending is Recovering, Boosting Lending to the Real Economy... # Tr ...With Banks Maintaining Loans/Deposit Ratios Below Parameters Average Loan/Deposit Ratio (%) +56.4% 80 80 69.6 72.8 14.75 63.6 14.98 12.19 12.26 9.54 20.4 14.9 15.5 16.1 17.1 36.3 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 ■Other Assets ■Loans and Advances Banking Sector Overview and Recent Developments • There are 27 banks operating in Nigeria, a figure that has remained fairly stable since a 2004 wave of consolidation reduced the number from 89 to 25 - Total assets of deposit money banks increased by 43.6 per cent. from N24.5 trillion in 2013 to #35.1 trillion in 2017, attributed to the increases in reserves, aggregated credit and loans and advances • Several measures have been undertaken to contain risks to financial stability and strengthen banking sector resilience, including increased provisioning, strict limits on net FX positions, and prohibition of dividend payments by banks with low Capital Adequacy Ratio. ⚫ On 21 Sept. 2018, the Bank revoked the license of Skye Bank to ensure stability in light of urgent need of recapitalization • The Bank deployed the Credit Assessment Analysis System, intensified the monitoring of the implementation of Basel II/III standards and continued to subject domestic systemically-important banks to enhanced regulation to strengthen its supervisory and surveillance activities. • The Central Bank has also been taking steps to integrate global best practices in financial reporting and disclosure with the implementation of IFRS 9. The Bank undertook an impact assessment of banks' total provisions and capital showed that capital adequacy was moderated by the huge regulatory risk reserve balances of the banks Source: CBN. 23 Monetary and Banking Updates

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