By PATRICK ALUSHULAMore by this AuthorProvisioning for non-performing loans (NPLs) in the banking sector could rise by 52.9 percent in 2019, slowing down profitability. Last year, many banks covered most of their NPLs through balance sheet reserves as opposed to income statement as they transitioned to International Financial Reporting Standard (IFRS) 9. Other banks captured in the analysis are Standard Chartered Bank, Barclays Bank, Stanbic Holdings, DTB Bank and I&M Holdings. The asset quality, mainly measured by the portion of loan book that is not performing, has been deteriorating over the past three years. The average NPL ratio was recorded at 12 per cent in December 2018 compared to 6.8 per cent at the end of 2015.

Source: Daily Nation April 28, 2019 18:11 UTC