• CBN intervenes with Dollar sales; Naira weakens 282.50/$

Deposit Money Banks, DMBs, reported a total of 12,279 fraud cases in 2015, representing an increase of 15.71% over the 10,612 fraud cases recorded in 2014.
However, the amount involved decreased significantly by N7.59 billion or 29.63% from N25.608 billion in 2014 to N18.021 billion in 2015.
Similarly, the actual loss suffered by the insured banks decreased by N3.02 billion or 48.79% from N6.19 billion in 2014 to N3.17 billion in 2015.
These disclosures are contained in the Nigeria Deposit Insurance Corporation, NDIC, 2015 Annual Report released in Abuja, yesterday.
Some of the highlights of the report say the actual loss sustained in respect of internet banking fraud was N857 million, representing 27% of total actual loss of the industry.
Also, there was an increase in the frequency of ATM/Card-Related Fraud cases from 7,181 in 2014 to 8,039 in 2015, an increase of 11.95%.
However, the loss suffered by the industry due to such frauds declined significantly by 59.4% from previous year figure of 1.242 billion to 0.504 billion, representing 15.9% of total industry loss to frauds and forgeries, said the report.
“Out of the 12,279 fraud cases reported by the DMBs, 425 cases were attributed to staff. The number of fraud cases perpetrated by staff had decreased from 465 in 2014 to 425 in 2015. Similarly, losses arising there from substantially decreased by 70% from N3.165 billion in 2014 to 0.979 billion in 2015. The highest percentage of frauds and forgeries cases of 38.59% was perpetrated by temporary staff,” said NDIC report.
The report said “NDIC remained committed to the implementation of the Sustainability Principles.
“A Sustainable Banking Desk was set up in the Managing Director’s Office and an Implementation Committee was established to work with Sustainable Banking Champions to ensure continuous sensitization and awareness.
“The Corporation has embarked on sustained and continuous capacity building programmes for staff on environmental and social risks issues. It also collaborates with other stakeholders to promote and expand the Sustainable banking space.”
The document said that the banking industry’s total assets grew marginally by 1.36 per cent, while total loans and advances rose by 5.56 per cent.
It said that shareholder’s funds, unimpaired by losses, increased by 14.02 per cent, while capital adequacy ratio stood at 17.66 per cent.
The report, however, noted that total deposit liabilities declined by 2.83 per cent, while unaudited profits decreased by 2.02 per cent.
In the period under review, the non-performing loans increased by 82.87 per cent.
According to the report, the banking industry’s capital base remains strong.
“The Capital Adequacy Ratio, CAR, of the industry was 17.66 per cent in 2015, compared with 15.92 per cent in 2014, but exceeded the minimum threshold of 10 per cent and 15 per cent for national and international banks, respectively.
“Two DMBs had CAR below the prescribed threshold of 10 per cent in 2015,’’ the report said.
On the economy, the report said that the total loans and advances to the Nigerian economy stood at 13.33 trillion in 2015, showing an increase of 5.56 per cent over the 12.63 trillion reported in 2014.
“The non-performing loans to total loans ratio for the industry increased from 2.81 per cent in 2014 to 4.87 per cent in 2015, but was within the regulatory threshold of 5 per cent,’’ the report said.
The document said that in 2015, the banking industry operated profitably, though earnings and profitability deteriorated.
It said that the unaudited Profit-Before-Tax, PBT, of the banking industry stood at 588.86 billion as at Dec. 31, 2015, representing a decrease of 2.02 per cent over the 601.02 billion reported as at Dec. 31, 2014.
The document noted that the industry’s liquidity position was strong as its average liquidity ratio rose slightly from 53.65 per cent in 2014 to 58.18 per cent in 2015.
“All the individual DMBs have liquidity ratios above the prudential minimum threshold of 30 per cent, as at Dec. 31, 2015,’’ the reports also said.

CBN intervenes with dollar sales; naira weakens 282.50/$
Meanwhile, Central Bank of Nigeria, CBN, has sold an undisclosed amount of hard currency on the interbank market to ease dollar shortages and provide importers the dollars to pay for the products they bring into the country, traders said on Tuesday.
The naira ended at 282.50, slightly weaker than the 281 naira to the dollar it first traded at on Tuesday, more than three hours after market opened at 0800 GMT.
The CBN has been selling dollars on the interbank market since it ended its 16 month-old currency peg last week, and it sold again on Tuesday, asking currency traders for bid-offer quotes from them at around 1118 GMT.
A total of $51 million traded on the interbank market just before the market closed, which traders attributed to central bank’s intervention.
The old currency peg had set a rate of 197 naira to the dollar, which over-valued the naira and led to a shortage of dollars that choked off growth in the economy. The shortage was exacerbated by plunging prices for oil, Nigeria’s biggest export and its main source of hard currency.
The CBN abandoned the peg to allow the currency to trade freely on the interbank market, but lack of liquidity has curbed activity, traders say, leaving the central bank as the main supplier of hard currency.
Removing the peg has narrowed the gap between naira rates available on the official and black markets. Even so, the naira was trading 20 percent lower on the unofficial market than it was on the interbank market on Tuesday, at 355 naira to the dollar.
The central bank on Monday introduced an over-the-counter futures market for the currency, to help manage dollar demand, quoting the naira firmer at 279 to the dollar in a month’s time and at 210 naira by April next year.
In the non-deliverable forwards market, the naira rose against the dollar on Tuesday, with the one-month contract NGN1NDFOR= quoting the currency as firm as 283, after hitting 296 a week ago.

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