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First Bank Nigeria Sees Slower Loan Growth in 2013

Loan Growth Expected to Slow to 10% After New Regulations

Owner of First Bank Nigeria, FBN Holdings Plc, announced this week that they expect their loan growth to slow to 10% in 2013. CFO Bayo Adelabu told Bloomberg today that lending increased 23% in 2012, but decreased 1.2% in H1 through June due to cuts in retail credit.

The CBN increased the cash-reserve requirement for public funds in banks to 50% in July, they also charged lenders to lower their fees and commissions in April, both mandates have put strain on the profits of Nigerian banks.

Adelabu intends to increase FBN’s prospects in H2…

We’ll target power, manufacturing and telecommunications sectors for lending in the second half, and do more investment banking to mitigate the impact of regulatory rules.

FBN’s net income remained unchanged in H1 at $284.9m.

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