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Commercial banks’ deposits drop by N474bn in second quarter – Today

HomeNewsCommercial banks’ deposits drop by N474bn in second quarter – Today
Commercial banks’ deposits drop by N474bn in second quarter – Today
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The present economic downturn seem to be taking its toll on bank activities as customers deposits received at the end of the third quarter of 2016 by commercial banks dropped to N18.064 trillion from N18. 538 trillion in the second quarter of the year representing a N474 billion.

This is compared to the N17.435 trillion deposits recorded in quarter one.

The total customer domestic loans issued Nigerian commercial banks rose to N13.78 trillion in the third quarter of 2016 from N13.51 trillion in quarter two and N11.393 trillion.

A new report by the National Bureau of Statistics, NBS, released on in Abuja also revealed that total domiciliary deposit recieved at the end of the accounting period in the third quarter rose to N4.798 trillion from N4.777 trillion in Q2, 2016. This represents a marginal increase of about N2 billion in domiciliary deposits nationwide.

Despite the current economic downturn, report showed that banks’ domiciliary deposits rose by over a trillion naira moving from N3.689 trillion in Q1 to N4.789 trillion in Q3.

Meanwhile, outstanding total domestic loans/leases at the end of the accounting period for quarter one rose from N11,393 billion in quarter one to N13.517 billion in Q2 further rising to 13.785 billion in Q3, 2016.

Also, average interest rate on loans moved from 16.82 per cent in Q1 before it dipped to 16.78 per cent in Q2, before rising to 17.09 in Q3.

However, this is lower than 17.02 per cent charged as inerest rate on loans/leases by commercial banks in Q3 of 2015. It was the same for interest rate on deposits and interbank rate.

According to the report, while deposits interest rates moved from 3.5 per cent in Q1, hitting 3.77 by quarter three, inter-bank interest rates jumped to 23.42 per cent in the third quarter from 15.56 per cent in Q2 and13.01 per cent in first quarter.

It will be recalled that the Central Bank of Nigeria, CBN, in August, 2016, raised the Monetary Policy Rate from 12 to 14 per cent. According to the apex bank, it took the decision to tackle inflation.

The report showed that outstanding loans/leases issued by 967 Micro Finance Banks, MFBs, as at the end of the first quarter of this year stood at N249.930 billion while domestic deposits received in the same period was N191.248 billion.

Thirty-five Primary Mortgage Banks, PMBs, the report said, issued N78,097 billion as outstanding loans/leases at the end of Q1. In addition to that, N65.611 billion and N9.694 billion was received as total domestic deposits and National Housing Fund, NHF, contributions for Q1, 2016 respectively.

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