Weekly Wrap: Banks reduce loans, Ecobank posts impressive performance and more

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Ghanaians can afford to purchase more foodstuff in August - ESOKO Ghana:

Ghanaians are likely to pay less for foodstuffs in the month of August, ESOKO Ghana has predicted.

Esoko’s prediction was premised on the belief that the rains in the first half of the year would contribute to an increase in farm produce.

It added that the easing of restrictions, which were implemented to curb the outbreak of the coronavirus, is also another factor.

YEN.com.gh understands that the month of July 2020 recorded significant reductions in the prices of some commodities in Ghana.

READ ALSO: Banks to vet applicants before employment - Bank of Ghana

Put an end to populism; the economy is in a fiscal mess - IFS to gov’t:

The Institute of Fiscal Studies (IFS) has called on the government to end its populist agenda and fix Ghana’s economy.

It argued that the economy is currently in a fiscal mess and there is the need for urgent measures to restructure it.

The Institute went on to say that given the outbreak of the coronavirus, the government needs to ensure that the situation is not worsened.

Per a report by graphic.com.gh, the Director of the Institute, Dr. Said Boakye, noted that Ghana’s fiscal position was already in a delicate situation before the outbreak of the coronavirus.

Banks cut down loans by GHc1.24bn in May - Bank of Ghana Report

The outbreak of the coronavirus compelled banks in Ghana to reduce loans available to customers by GHc1.24 billion in May 2020.

The latest Statistical Bulletin by the Bank of Ghana (BoG) shows that this was realised during the peak of the outbreak when a partial lockdown was enforced from March 31.

The data shows that GHc17.09 billion, GHc15.59 billion and GHc14.35 billion were released as loans in March April and May 2020 respectively.

Per a report by myjoyonline.com, the gradual fall in the amount of funds released as loans is largely attributed to banks' tough stance on credit.

The rationale behind the move, YEN.com.gh has learned, was due to the uncertainties associated with the economic impact of COVID-19.

Banks have spent over GHc100m to combat COVID-19 - Bankers Association:

Commercial banks in Ghana have spent an estimated GHc102 million to provide various forms of relief to clients.

According to the Ghana Association of Bankers (GAB), the reliefs formed part of efforts to insulate their clients against the economic impact of COVID-19.

GAB revealed that all 23 universal banks in Ghana have been compelled to restructure, re-profile, or grant an extension of debt repayment to customers.

This, per a report by thebftonline.com, has led to a decline in profit estimates for the year 2020.

YEN.com.gh has learned that banks have reduced their interest rate between 150 and 350 points thereby losing income which could have been recorded as profit.

OVER THE WEEKEND:

ECOBANK Ghana posts sterling financial results in 2019:

Ecobank Ghana on August 7, 2020, held its 15th Annual General Meeting (AGM), posting sterling financial results and maintaining its position as Ghana’s biggest bank.

This year’s AGM held virtually, highlighted strong growth in revenues and profits, strengthening of the Bank’s balance sheet as well as a dividend payout.

On performance, the bank earned a record total revenue of GHS1.58 billion and profit before tax of GHS642.4 million, marking a growth of 21% and 27% respectively over the prior year figures.

Operating expenses growth was well controlled within inflationary levels with a resultant reduction in cost-to-income ratio from 51.5% in 2018 to 45.8% in 2019.

READ ALSO: ARB Apex Bank records GHc1 million profit for 2019; represents 10% increase

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Source: YEN.com.gh