Ecobank rules out lending cuts over defaults in loans repayment

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Ecobank says it does not intend to cut lending this year despite difficulties with getting back loans advanced to some of its customers.

Ecobank, like other banks, ended last year with over 200% jump in loans it fears might go bad.

According to the Bank of Ghana, defaults in bank loans increased more than 300% to 4.2 billion Ghana cedis for 2015, prompting decision by some banks to cut lending aggressively.

But speaking to Joy Business on its 2015 financials, Chief finance officer of Ecobank, Edward Botchwey says his bank will not cut lending.

“At the end of the day it comes down to a particular client and the business case for a particular loan need,” he said.

Ecobank ended last year with a 3% jump in profit before tax to reach 458 billion Ghana cedis, while revenue crossed the one billion Ghana cedi mark.

The bank ended last year standing out as one of the banks in the country so far with the highest profits.

 

Source: myjoyonline.com

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