NIGERIAN BANKS & THEIR TOXIC LOANS-- AMCON

 Nigeria's Asset Management Company, ( AMCON) since its creation has acquired N1.7trillion toxic loans from Nigerian banks and it is easy to see  the banks in the country that are giving it the most headache.

AMCON was set up through an Act passed in 2010 purposely to buy up toxic loans aka non- performing loans from Nigerian banks to save any from collapsing under the weight of non performing loans.

According to AMCON, to date it has acquired 12,537 such loans or otherwise called Eligible Bank Assets ( EBAs) across the country.

Top of the list in terms of number of toxic loans so far acquired was United Bank for Africa with 3826 or 30.5% of the total followed by defunct Intercontinental Bank (1735 or 13.84%); Enterprise Bank (1062 or 8.47%) and defunct Oceanic Bank with 783 or 6.25%.

The least in terms of number were Stanbic IBTC with only 12 or 0.1% purchased so far; Zenith Bank with 18 or 0.14% ; Access Bank with 43 or 0.34%; Diamond Bank (83 or 1.47%) and Guaranty Trust Bank (88 or 1.55%).

Of course, by implication, these figures reflect relative efficiency of each of the banks' loan approval and recovery process but that is not all of the story.

Some of the banks, are more inclined to give loans in billions of Naira that could bring the roof down more easily. As the saying goes, owe a man a million, you are at his mercy, but owe him more much, he is at your mercy.

In this regard, the banks that seemed to have been exposed to greater risk were Union Bank with 393 or 3.13% of number of loans accounting for 11.58% of the value of the AMCON portfolio.

Others were Mainstreet Bank with 503 or 4.01% of toxic loans accounting for 11.40% of portfolio value, Oceanic Bank 783 or 6.25% accounting for 11.58% and Keystone Bank with 740 or 5.9% of number accounting for 9.15% of value.

The least in this regard were UBA which its 30.5% of number of toxic loans accounted for only 5.80% of portfolio value of N1.7trillion; Unity Bank with 7.47% of number of loans accounting for 2.28% of value; Enterprise Bank (8.47% of number of loans responsible for 3.59% of value); First Bank accounting for 4.04% of portfolio value with 782 or 6.23% of total number and First City Monument Bank with 575 or 4.59% of number of the loans accounting for 2.94% of portfolio.

To appreciate how risky it has been, AMCON says 40% of the toxic loan value in the portfolio were for above N40bn while 37% ranged between N1bn and N10bn and the rest were N100m and below.

The toxic loans, says AMCON, were mainly extended to Oil and Gas (27.23%), General Commerce (18.49); Capital Market activities (17.93%), Manufacturing (6.24%) and Finance (5.47%).

Usually, AMCON throws open for bid some of the tangible assets used to back up these toxic loans and on Monday October 22, Henates counted up to 53 such properties for sale on its site.

The bulk were in Abuja (18); and Lagos (15), 13 could not be domiciled by Henates and the rest were scattered in Cross River, Plateau, Kano, Sokoto Delta, Anambra, Ogun and  Benue States.

TOP 10 BANKS BY NUMBER IN AMCON PORTFOLIO

UBA.                      3826
Intercontinental.  1735
Enterprise             1062
Unity                        937
Oceanic.                 783
First Bank              782
Keystone                740
First City                 575
Main street.            503
Union.                      393

TOP 10 BANKS BY % SHARE OF AMCON TOXIC PORTFOLIO

Intercontinental.             14.62
Oceanic.                           11.58
Union.                               11.43
Mainstreet.                      11.40
Keystone.                          9.15
UBA.                                   5.80
First Bank.                         4.04
Enterprise.                         3.59
First City.                           2.94
Skye bank(Polaris)          2.62





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