Ecobank has reduced the loans granted to customers in the second quarter of this year by two per cent as the Central Bank of Nigeria increased its hold on the lender’s capital.
In Ecobank’s financial reports 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 per cent from N7.32 trillion in Q2 2020 to N7.86 trillion this year.
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 per cent loan-to-deposit ratio would be fined.
However, Ecobank’s cash balance with CBN stood at N1.73 trillion as of June 30 compared to N1.50 trillion for December 31, 2020.