Part of the report read, “Nigerian banks could suffer weak earnings growth in 2020 following the adverse effect of the COVID-19 pandemic on their performance as well as counter measures introduced by the Central Bank of Nigeria to support vulnerable businesses.
The report noted that the introduction of the minimum Loan to Deposit Ratio rate which carried a penalty for defaulters had prompted banks to engage in mild pricing wars resulting in lowering of lending rates. It said, “Last, we note that rates in the fixed income market have compressed significantly due to robust liquidity positions.
It however said it expected to see a sustained increase in industry total loans as the DMBs complied with the CBN’s Loan to Deposit Ratio directive among others.