NEXIM Bank records decline in non-performing loans
The non –performing loans of the Nigeria Export Import Bank (NEXIM), has come to N1.3 billion last year, from N14.6 billion in 2009. The Bank’s Managing Director and CEO, Mr. Roberts Orya, who confirmed the status of the bank non-performing loans pointed that loan recovery remains the greatest challenge to the banking sector. He said the setting up of Remedial Management department by the current management aided substantially in the loans recovery effort. Orya said that there was “alarming decline in the quality of risk assets as the bank’s total loan portfolio as at 20 th August 2009 was N14.6 Billion out of which 72 per cent was non performing and within that category N10.03 Billion or 69.05 was classified as completely lost”.He said the current management has embarked on aggressive re-positioning of the bank by re-focusing it form a hitherto non-profit orgnaisinsation to a commercial driving agency.
The new orientation, he said has translated to impressive performance in year 2010 with an audited profit of N189.00 million as against the loss of N5.460 billion incurred in 2009. “The bank has been able to leverage on its Balance Sheet to secure lines of credit from institutions like the African Export-Import Bank (Afrexim), The Export-Import Bank of India while it has collaboration arrangements with United States Export-Import Bank and other EXIM Banks. “Also, we supported Nigerian exporters majorly the small and medium enterprises (SME’s) with some engaged in Greenfield projects, to the tune of N23.33 Billion and issued Guarantees valued at $27.3 Million between 2009 and August 2012. These interventions were in our target sectors with high growth potentials of Manufacturing, Agro – Processing, Solid Minerals and Services (MASS Agenda).
“With the turnaround of the Bank’s performance, Management ensured an appreciable return on the equity investment of the shareholders. Accordingly a Dividend for the 2010 financial year performance was declared and paid, which was the first time since year 2003 when Dividend was last paid” Orya said.