Guaranty Trust Bank cut its loan approval for the period of Q1 this year. The lender reduced loans given to customers by 1.8 percent. This affected GTBank loans-to-deposit ratio for the period under review.
The company had approved N1.66 trillion for the period ended December 31, 2020, but the amount was slashed at the just concluded quarter, as financial reports of the company showed customers were given N1.63 trillion in Q1 2021.
Loan beneficiaries of financial institutions are retail and corporate customers. Ripples Nigeria learnt that out of tbe total loan disbursed in Q1 2021, performing loan is put at N1.61 trillion, while non-performing loan is N104.50 billion, dropping from N111.39 billion in Q4 last year.
GTBank recorded a total impairment of of N79.97 billion in Q1, reflecting a reduction when compared to the preceding period of December 2020 when it recorded N80.97 billion.
During the period under review, loans-to-deposit ratio declined to 44.08 percent in the first quarter of this year, from 46.05 percent LDR reported during the preceding quarter last year.
However, the bank was able to reduce its non-performing loans in the first three months of this year, cutting it down to 6.08 percent, against the 6.39 percent the GTBank reported last year fourth quarter.
The reduction in non-performing loans shows that businesses are gradually rising to their debt obligations which was disrupted last year by the COVID-19 pandemic which shutdown revenue sources of many companies.
Nigerian banks have also had to request for restructuring of loans in order to avoid recording more bad debts. The Central Bank of Nigeria approved the request.