Deposit Money Banks, DMBs in Nigeria lost N25.61 billion to fraudsters in 10,612 cases in 2014, compared with N21.80 billion involving 3,786 cases reported in 2013.
This represents an increase of 182.77 percent in number of fraud cases; in the same vein, the amount involved increased by N3.81 billion or 17.5 percent when compared to what happened in 2013.
The increase of 7.57 percent in expected/actual loss in fraud and forgeries was mainly due to the astronomical increase in the incidence of web-based (online banking)/ATM and fraudulent transfer/withdrawal of deposit frauds.
These facts are contained in the Nigeria Deposit Insurance Corporation, NDIC 2014 Annual Report and Statement of Accounts released in Abuja yesterday.
The account which was audited by PricewaterhouseCoopers stated that Capital Adequacy Ratio, CAR of the DMBs declined by 1.26 percentage points from 17.18% in 2013 to 15.92% in 2014, but exceeded the minimum capital adequacy threshold of 10%.
However, it pointed out that the Asset Quality of the banking industry significantly improved during the period under review.
According to the report, the banking industry total loans and advances stood at N12.63 trillion in 2014, showing an increase of 25.73 percent over N10.04 trillion granted in 2013.
The industry’s volume of non-performing loans increased by 10.26 percent from N321.66 billion in 2013 to N354.84 billion in 2014
“The banking industry non-performing loans to total loans ratio improved from 3.20% in 2013 to 2.81% in 2014 and was within the regulatory threshold of 5%”, said the report.
It noted that the observed improved asset quality could be explained by the improved process of loan underwriting as well as the continued purchase of non-performing loans (NPLs) by AMCON.
“The unaudited profit-before-tax (PBT) of the banking industry stood at N601.02 billion, representing an increase of 11.31% over N539.97 billion reported in 2013.
“Return on Assets (ROA) and Return on Equity (ROE) declined marginally by 1.70% and 1.76% from 2.33% and 20.71% to 2.29% and 20.34% in 2013 and 2014 respectively. Yield on earning assets also declined to 11.71% in 2014 from 13.10% in 2013.
“The banking industry liquidity risk was moderate during the period under review. The industry average liquidity ratio rose from 50.63% in 2013 to 53.65% in 2014 showing an increase of 3.02% over the 50.63% in 2013.
“Individually, all the DMBs in the industry had liquidity ratios in excess of the minimum prudential requirement of 30%, as at 31st December 2014, indicating that all DMBs were sufficiently liquid,” said the Annual Report.
The NDIC said it continues to prepare its financial statements on the basis of International Financial Reporting Standard, IFRS and in line with the requirements of the Financial Reporting Council of Nigeria, FRCN.
“The Total Operating Income of the NDIC increased by 28.73% from N66.94 billion as at 31st December, 2013 to N86.17 billion as at 31st December, 2014.
“Total Operating Expenses increased by 22.77% from N24.73 billion as at 31st December, 2013 to N30.36 billion as at 31st December, 2014.
“The net surplus of operating income over operating expenses for 2014 and deposit insurance fund stood at N138.81 billion as against N114.18 billion in 2013, after remittance of N15.38 billion to the FGN Consolidated Revenue Fund Account.
“As at 31st December, 2014, the DIF stood at N614.16 billion as against N508.06 billion reported as at 31st December, 2013.
“That was an increase of N106.10 billion or 20.88% over the 2013 figure. Similarly, the SIIF increased by 23.39% from N57.71 billion as at 31st December, 2013 to N71.21 billion as at 31st December, 2014. In the same vein, the NIDIF increased by 594.11% from N0.017 billion as at 31st December, 2013 to N0.118 billion as at 31st December, 2014,” the Annual Report further stated.
The banking industry performance and level of soundness in 2014 indicated that 23 DMBs were rated sound and satisfactory during the period under review.

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