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Five major banks post N680bn bad loans

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Five of the major banks in the country, also known as Tier-1 banks, have posted whopping N683bn non-performing loans in the 2020 financial year, findings have revealed.

According to the financial reports of the banks, released in April this year to the Nigerian Stock Exchange, the bad loans were linked to the downturn in the economy as a result of the COVID-19 pandemic and other factors.

The financial reports revealed that some of the five Systemically Important Banks recorded an increase in their bad loans while others recorded a decrease during the year under review, compared to the previous year.

The five banks are Access Bank Plc, FBN Holdings Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc, and Zenith Bank Plc.

They reported N161.2bn, N170.7bn, N111.46bn, N120.08bn and N125.24bn bad loans, respectively.

Further analysis showed that while FBN Holdings and GTBank reported NPL ratios that were above the prudential guideline of the Central Bank of Nigeria put at five per cent, Access Bank, Zenith Bank and UBA recorded NPLs that were within the regulatory threshold.

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Meanwhile, eleven of the nation’s banks cumulatively recorded an 87 per cent increase in loan impairment charges in the 2020 financial year, compared to 2019.

A loan impairment charge is described as a deterioration in the realisable value of loans and advances or risk assets extended to banks’ customers. The occurrence of this event results in a reduction in the earnings of the affected bank and its shareholders.

In simple terms, impairment charges are charges banks make against their profit in order to reflect a fall in value or worse-than-expected performance of the loans or asset.

Specifically, findings showed that the 11 banks cumulatively incurred N342bn impairment charges during the 2020 financial year, compared to the N181.95bn recorded in 2019. This indicates a whopping 87 per cent increase in impairment charges.

The banks are Zenith Bank, Access Bank, GTBank, UBA, FBN Holdings, Ecobank Transnational Incorporated, Stanbic IBTC Holdings Plc, FCMB Holdings Plc, Sterling Bank Plc, Fidelity Bank Plc, and Jaiz Bank Plc.

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The breakdown revealed that Zenith Bank incurred N39.5bn impairment charges in 2020, up by 64.5 per cent from the N24.03bn recorded in 2019.

Access Bank in 2020 reported N62.89bn impairment charges, a 211.5 per cent increase above the N20.2bn it reported in 2019.

In the year under review, GTBank recorded a jump of 299 per cent in impairment charges from N4.911bn in 2019 to N19.572bn in 2020.

Also, UBA reported impairment charges of N22.44bn last year, up by 37.4 per cent from the N16.336bn it reported in 2019.

However, FBN Holdings’ impairment charges dropped by 0.97 per cent to N50.6bn in 2020 from N51.09bn in 2019.

Sterling Bank reported N7.91bn impairment charges in 2020, a 35 per cent increase from the N5.84bn in 2019, while Ecobank posted impairment charges of N86.7bn, indicating an increase of 79 per cent from N48.32bn booked in 2019.

FCMB Group’s impairment charges stood at N22.31bn in 2020, indicating an increase of 62.3 per cent from the N13.75bn in 2019 while Fidelity Bank which had a write-back of N5.29bn in 2019, reported an impairment charge of N16.86bn in 2020.

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Also, Stanbic IBTC Holdings and Jaiz Bank reported significant hikes in impairment charges in the year under review, reporting 508.76 per cent and 180.1 per cent increase to N9.94bn and N3.21bn in 2020 respectively.

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Tribunal stops MultiChoice from increasing DStv, Gotv subscription rates

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A competition and consumer protection tribunal (CCPT) in Abuja has stopped Multi-Choice Nigeria Limited from increasing its tariffs and cost of products and services scheduled to begin on May 1.

 

A three-member tribunal led by Saratu Shafii gave the interim order following an ex-parte motion moved by Ejiro Awaritoma, counsel to Festus Onifade, the applicant.

 

The tribunal, in the ruling, restrained Multi-Choice from going ahead with the impending price increase pending the hearing and determination of the motion on notice filed before it.

 

“The 1st defendant is hereby restrained from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the motion on notice,” Shafii ruled.

Shafii also directed all parties in the suit to appear before the tribunal at 10 a.m. on May 7 for the hearing and determination of the motion on notice.

 

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Onifade, a legal practitioner, filed the suit marked CCPT/OP/2/2024, against Multi-Choice Nigeria Ltd and the Federal Competition and Consumer Protection Commission (FCCPC) on Monday.

 

On April 24, Multichoice Nigeria announced an increase in the cost of subscriptions for its DStv and GOtv packages.

The pay-TV firm cited the rise in the cost of business operations as the rationale behind the price increase.

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How to check 2024 JAMB UTME results

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The Joint Admissions and Matriculation Board (JAMB) has released modalities for the checking of the 2024 Unified Tertiary Matriculation Examination (UTME) results via SMS.

For candidates who took part in the 2024 UTME organised by JAMB, the examination body said the results of the exercise can be checked following some simple steps.

 

“Candidates are advised to use the phone numbers they used to register to text UTMERESULT to 55019/66019. There is no need to approach any CBT centre or cybercafé to check results,” JAMB said.

 

“The following are the responses to be expected hence, a candidate with a result will receive the message: ‘Dear ‘Candidate X’, your result is as follows (and the details will be provided).’”

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JAMB releases 2024 UTME results, 8,401 score 300 and above

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The Joint Admissions and Matriculation Board (JAMB) has released the 2024 Unified Tertiary Matriculation Examination (UTME) results.

 

JAMB’s Registrar Ishaq Oloyede announced the release of the UTME results in a press conference held at the board’s headquarters in Bwari on the outskirts of Abuja.

 

According to Oloyede, over 1.94 million candidates registered and sat for the examination in 118 towns and over 700 centres across the country.

 

The examination which began on Friday the 19th of April ended on Monday the 29th of April. Out of the 1,989,668 registered candidates, 80, 810 were absent. A total of 1, 904, 189 sat the UTME within the six days of the examination.

“Out of the 1,842,464 released results, a paltry 0.4% scored above 300 while 24% scored 50% (200/400) and above,” the JAMB chief said.

 

He said 1,1,402,490, which is 76 per cent of the candidates got below 200. JAMB, however, re-echoed its resolve not to publish the name of the highest-scoring candidate.

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“It is common knowledge that the Board has, at various fora, restated its unwillingness to publish the names of its best-performing candidates, as it considers its UTME as only a ranking examination on account of the other parameters that would constitute what would later be considered the minimum admissible score for candidates seeking admission to tertiary institutions,” Oloyede noted.

 

More Female Enrolees
A further breakdown of the number of candidates who sat for the examination showed that the females were more than males.

The JAMB registrar said 982,393 males representing 49.4 per cent enrolled for the 2024 UTME as against 1,007,275 females which is 50.6 per cent.

 

Oloyede said “it is evident that there is a significant improvement in the enrolment of females, with over one million girls registering for the examination.

 

“This is the first time in three years that the number of females will be more than that of their male counterparts.

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“Out of the total registration, 3,164 were persons living with disabilities.”

 

“There is a 36.2% increase in the enrolment of PLWDs as compared to the last year,” the JAMB boss told the gathering.

 

 

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