Digital Banking and Financial Performance Review
Strong Capital Ratios - Group and Parent
The Group maintained strong capital positions with a Full IFRS 9 impact Capital Adequacy Ratio (CAR) of 24.1%, 910bps
above the regulatory minimum of 15%.
Tier 1 capital remained a significant component of the Group's CAR at 23.8% representing 98.8% of the Group's CAR of
24.1%.
The robust capital position provides the Group with the needed headroom for future expansion and risk-taking.
The Group's Capital has been sensitized for Basel III compliance and three levels of devaluation of Naira to USD
N550-N600-N650/$1 and found robust enough to meet the requirements of additional capital buffers - conservation
and counter-cyclical under Basel III and expected growth in the Risk weighted value of the FCY component of the
Group's Balance sheet.
Capital Adequacy Ratio (Basel II) (%)
25.58%
23.39%
22.51%
25.90%
24.56%
23.83%
Capital Adequacy Computation (Basel II)
Group
In Millions of Naira
Transitional IFRS 9 Impact
Full IFRS 9 Impact
Dec. 22
Net Tier 1 Capital
Net Tier 2 Capital
Total Regulatory Capital
790,005
7,717
797,722
Dec. 21
769,938
24,239
794,177
Dec. 22
790,005
7,717
797,722
Dec. 21
704,447
24,239
728,686
Risk Weighted Assets for:
Credit Risk
Operational Risk
Market Risk
2,614,159
672,290
26,935
Aggregate Risk Weighted Assets
3,313,384
2,495,305
612,312
15,214
3,123,831
2,614,159
672,290
26,935
3,313,384
2,430,474
612,312
15,214
3,058,000
Capital Adequacy Ratio:
Tier 1 Risk Weighted
Tier 2 Risk Weighted
23.84%
0.08%
Total Risk Weighted Capital Ratio
24.08%
24.65%
0.78%
25.42%
23.84%
0.23%
24.08%
23.03%
0.79%
23.83%
* Transitional IFRS 9 Arrangement CAR
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Regulatory Capital (Group) - Tier 1 & 2 (N'Bn)
554.2
CAGR
9.5%
727.4
797.7
728.7
Dec-19
Dec-20
Dec-21
Dec-22
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