Customer deposits in five Nigerian banks hit N25trn amid COVID-19

The total customer deposits in five Nigerian commercial banks rose by 32.33 percent in 2020 despite the impact of the COVID-19 pandemic on businesses and households.

The banks saw their combined customer deposit rise to N25.01 trillion at the end of last year from N18.9 trillion on Dec. 31, 2019, according to data compiled by Markets Reporters.

The United Bank for Africa Plc reported an increase of 48.30 percent in customer deposits to N5.68 trillion from N3.83 trillion.

Access Bank Plc grew customer deposits to N5.59 trillion from N4.26 trillion, its audited financial statements show.

Customer deposits in Zenith Bank Plc increased to N5.34 trillion from N4.26 trillion.

FBN Holdings Plc saw its customer deposits rise to N4.89 trillion from N4.02 trillion while Guaranty Trust Bank Plc boosted customer deposits to N3.51 trillion from N2.53 trillion.

Moody’s Investors Service, a global credit rating agency, said last week that the outlook for Nigeria’s banking system remained negative, reflecting expectations of rising asset risk and weakening government support capacity over the next 12 to 18 months.

“Nigerian banks’ loan quality will weaken in 2021 as coronavirus support measures implemented by the government and central bank last year, including the loan repayment holiday, are unwound,” said Peter Mushangwe, analyst at Moody’s and the co-author of the report.

“The negative outlook also captures the weakening capacity of the Government of Nigeria to support the country’s banks in case of need, as reflected by the negative outlook on the government’s credit rating; on the other hand, Nigerian banks hold robust capital buffers and foreign-currency shortages will ease.”