Ecobank Nigeria’s loan to customers drops in Q2 2020

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Ecobank Nigeria’s loan to customers dropped from N3.69 trillion in Q2 2020 to N3.63 trillion this year despite an increase in customers’ deposits during the period, according to the lender’s financial reports.

Customers’ deposits in Ecobank increased by 7 percent 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 percent loan-to-deposit ratio would be fined.

The lender’s cash balance with CBN stood at N1.73 trillion as of June 30 compared to N1.50 trillion for December 31, 2020.

Ecobank is one of the financial institutions that support entrepreneurs in the MSMEs sector of the economy.

The lender has different product packages tailored to meet the needs of small business owners, considering their contribution to the gross domestic product (GDP) of the nation.