StandChart to cut credit to businesses by end of 2015

quist

August 20, 2015 12:25 PM

Kweku Bedu-Addo, managing director of the bank put this down to current difficulties of the economy, which has led to growing numbers in bad loans, and delayed payments of loans.

Management of Standard Chartered Bank has decided to cut down credit to businesses for 2015.

Kweku Bedu-Addo, managing director of the bank put this down to current difficulties of the economy, which has led to growing numbers in bad loans, and delayed payments of loans.

Kweku Bedu-Addo however stressed this is a temporary, short-term strategy to improve the revenue base of the company and prifitability.

“In this operating environment, you need to be careful of the risks you’re taking. We take the view that in this environment it is not optimal to grow assets aggressively”, he told Joy Business during a teleconference with investors on the bank’s half-year results" he said in a meeting with the company's investors.

He added that the goal will is to be efficient with their lending rather than numbers.

“It is a question of emphasis, the reality is that the economy has gone through a serious downturn and it has impacted on a lot of clients. Most of them have very disrupted working capital cycle and if their working capital cycles are disrupted, it impacts how and when they can pay you so we are focusing all our attention there to sort it out”.

Standard Chartered Bank’s profits for first half year went down from 110 million Ghana cedis to 75 million Ghana cedis over the same period last year.

Interest Income also jumped from 210 million Ghana cedis to 231 million Ghana cedis.

Enhance Your Pulse News Experience!

Get rewards worth up to $20 when selected to participate in our exclusive focus group. Your input will help us to make informed decisions that align with your needs and preferences.

I've got feedback!

quist