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The Central Bank of Nigeria recently released the economic report for the month of July 2009. You can download it below. Here is the summary:
Here is a document dump of different reports and news stories on the banking crisis and the actions taken by the CBN.
Vetiva provides some details on the CBN’s presentation/road-show in the UK in late August. The noted that:
- All write-downs are to be taken in the current quarter (i.e. quarterly results to be released for September ending will feature total provisions for non-performing exposures)
- Results not to feature high profitability margins
- GTBank and Diamond Bank have already accounted for losses as at second quarter of 2009 (i.e. Q2’09 ended June 30, and Q1’09 ended July 31 respectively), so their results in Q3 are expected to be much better than the average performance of most other Banks
- Fourth quarter (ending December) should be strong for Nigerian Banks in general because earnings will no longer be eroded by Non-Performing Loans
Vetiva - Sanusi's Meeting With CNBC Africa - Aug 28th 2009 (302)
One of the most explosive revelations of this entire exercise was the news report by Vanguard in March about the plans to “level” the ground in the banking sector to favour the Northerners and how 5 banks were going to be taken over.
Vanguard March 23, 2009 - The Plan to take over 5 banks (293)
Standard Chartered also prepared an analysis of the events. The pointed out that:
-CBN prints money to fund the initial cost of the bank bailout
-Given the current environment, and the contraction in broad monetary aggregates already underway, this is unlikely to be inflationary
-A diverse range of funding options are open to the authorities
-The hope is that the CBN’s capital injection will be recovered following future private-sector investment in Nigeria’s banking system
Standard Chartered - Nigeria – Paying for the bank bailout - Aug 25 '09 (543)
Proshare NG also provided some analysis:
CB - Dissecting the problems with Nigerian Banks (2160)
Fronteria Post of 4 out of the CBN (217)
Here is the communique for the September 1st 2009 meeting of the Monetary Policy Committee from the CBN. The summary is:
The Nigerian Tribune had an article today on the complaints of the stakeholders of the banks taken over by the CBN.
You can read excerpts of the report below. My comments follow.
Below are the CBN Governor’s statement on the bank takeovers and the list of bank debtors:
Here are the main news stories as a result of the recent firing of the heads of Intercontinental, Oceanic, Finbank, Afribank, and Union Banks:
In: CBN
5 Aug 2009The Central Bank of Nigeria recently released the May 2009 Economic Report. The summary and copy of the report are below:
In: CBN
5 Aug 2009The Central Bank recently held the <a href=”http://www.cenbank.org/fican/2009/index.asp”>14th Seminar for Finance Correspondents and Business Editors</a>. This year’s event was focussed on the Global Economic Crisis And Its Impact On The Nigerian Economy.
Papers were delivered by notable personalities such as Dr Atuche, CEO of Bank PHB, Mr Odoko of WAMA etc.
You can read and download the papers below:
The Central Bank recently held the regular Monetary Policy Committee meeting and the first chaired by the new Governor, Lamido Sanusi. Two of the key outcomes of the meeting were the lifting of restrictions on FOREX trading and the cutting of the key interest rate by 200 basis points (from 8% to 6%) in order to boost credit growth. The other key points from the meeting are:
The Central Bank of Nigeria recently released the quarterly report for Q1 2009. Here is the summary:
- GDP grew by 6.4% in 2008 and 6.3% for the first quarter compared with 5.7% for the same period in 2008.
- The projected growth was driven mainly the non-oil sector particularly agriculture which accounted for 35.5% (according to the National Bureau of Statistics).
- Broad and Narrow Money contracted by 1.9% and 3.9% respectively relative to the preceding quarter. Decline in Broad Money was a result of the fall in the foreign assets of the banking system.
- There was a general increase in banks’ deposits and lending rates in Q1.
- The spread between the weighted average term deposit and
maximum lending rates widened from 8.13 percentage points in the preceding quarter to 9.97 percentage points.
- The margin between the average savings deposit and maximum lending rates, also, widened from 16.62 to 19.33 percentage points during the period.
- The weighted average inter-bank call rate rose to 15.79 per cent from 14.01 per cent in the preceding quarter, reflecting the liquidity condition in the inter-bank funds market.
- The value of money market assets outstanding rose by 5.5% in Q1.
- Total federally collected revenue stood at N1.18 trillion, a decline of 10.8% and 31.9% from the proportionate budget estimate and preceding quarter levels.
- Oil recipts constituted 71.2% of total revenue. This was a decline of 39.5% from the previous quarter and attributed to the decline in oil and gas sales.
- Crude oil export was 110.7 million barrels for teh quarter.
- Inflation rate was 14.4% compared with 15.1% in the previous quarter.
- There was a net outflow of $5.53billion through the CBN during the quarter.
- The Naira depreciated 17% in value during the quarter.
Here are the average interest rates for Nigerian banks:
This blog is dedicated to informing users on the latest business and economic news news from the CBN and Nigerian Stock Exchange. Happy reading!