Ecobank cuts loans to customers by 2%

Ecobank reduced the loans granted to customers in the second quarter of this year by 2 percent as the Central Bank of Nigeria (CBN) increased its hold on the lender’s capital.

In Ecobank’s financial reports seen by Ripples Nigeria on Monday, the lender’s loans to customers dropped from N3.69 trillion in Q2 2020 to N3.63 trillion this year.

The reduction occurred despite an increase in customers’ deposits during the period.

Customers’ deposits in Ecobank increased by 7 percent from N7.32 trillion in Q2 2020 to N7.86 trillion this year.

READ ALSO:Ecobank parent company increases liability as it eyes new assets

The decline in loans to customers came just as the CBN had warned that any lender that failed to increase their loan provision or meet its 65 percent loan-to-deposit ratio would be fined.

Ripples Nigeria gathered that Ecobank’s cash balance with CBN stood at N1.73 trillion as of June 30 compared to N1.50 trillion for December 31, 2020.

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