Zenith Bank reports N177.3bn bad loan in 2022
Zenith Bank Plc has reported N177.3billion Non-Performing Loan in 2022 financial year as against N146.1billion reported in 2021 financial year.
Oil and gas, general commerce and consumer credit sectors were the driving force behind the lender’s increase in NPL in 2022.
The bank announced N4.12trillion gross loans in 2022 from N3.50 trillion in 2021.
It witnessed 4.30 per cent NPL ratio in 2022 from 4.19 per cent, which is below the five per cent threshold of the Central Bank of Nigeria (CBN).
The Monetary Policy Committee (MPC) of the CBN had noted the continued resilience of the banking system, evidenced by the progressive improvement in the NPLs ratio from 4.9 per cent in November 2022 to 4.2 per cent in December 2022.
However, Zenith bank said it has adopted a holistic and integrated approach to risk management and therefore, brings all risks together under one or a limited number of oversight functions.
“Risk management is practiced as a shared responsibility; thus the Group aims to build a shared perspective on risks that is grounded in consensus.
“The process is governed by well-defined policies that are subjected to continuous review and are clearly communicated across the Group; Risk related issues are taken into consideration in all business decisions; the Group ensures that there is clear segregation of duties between market-facing business units and risk management functions and risk culture is continuously being entrenched through appropriate training and acculturation,” the bank said in a presentation to investors and analysts.
