Banks NDIC Premium Charge up 7.55 percent to N33.0 billion in HI

Twelve largest banks in Nigeria paid N33.07 billion National Depositor Insurance Corporation charge (NDIC premium charge) for period ended June 2018; this represents a 7.55 percent increase from the figure recorded last year.

The charge is an insurance cover should a lender is unable to cover its liabilities as at when due.

NDIC has been reducing the insurance premium paid by Deposit Money Banks. It first reduced the premium to 0.40 percent in 2011 from 0.50 percent in 2014, with a view to encouraging banks to contribute more to the Financial Stability Fund.

A breakdown of the figure shows Zenith Bank’s NDIC premium charge increased by 20.33 percent to N8.63 billion in the period under review from N7.17 billion the previous year.

Access Bank’s NDIC premium charge was up 41.33 percent to N3.92 billion in the period under review from N2.77 billion the previous year.

GTBank’s NDIC premium charge was up 1.96 percent to N3.94 billion in June 2018 from N3.87 billion the previous year.

UBA’s NDIC Premium charge was up 14.57 percent to N3.81 billion in June 2018 from N3.33 billion the previous year.

However, First Bank Holdings’ NDIC Premium charge fell by 43.97 percent to N1.77 billion in June 2018 from N3.16 billion as at June 2017.

The regulatory body underwrites depositor’s money against any loss and banks are expected to a pool, according to Robert Omotosho,

“For instance, the regulator was able to protect depositors money in the case of SkyeBank Nigeria Plc,” said Omotisho

The Central Bank of Nigeria (CBN) had revoked the licence of Skyebank and transferred its assets and liabilities to a newly licenced bridge bank Polaris.

NDIC sold Polaris Bank to the Asset Management Corporation of Nigeria (AMCON) with the mandate to stabilise the bank as well as return it to profitability for the purpose of selling it to interested Investors.

Banks’ HI NDIC Premium Charge

Source: Company Financials; M and 1