According to a GraphicOnline report, GT Bank will rather be focusing on other high-yielding African markets to boost lending by 15% in 2023.
Top Nigerian bank plans to reduce lending and bond trading in Ghana
Guaranty Trust Holding Co.,Nigeria's biggest bank by market value, plans to slow lending and bond trading in Ghana following a $77 million impairment in the West African nation.
The bank also hopes to increase its profit-before-tax growth by 31% from 214.2 billion naira in 2022.
Guaranty Trust operates GTBank in Ghana and the country is currently restructuring most of its public debt, causing losses for financial institutions. The bank is facing a tough time in its second-biggest market, Ghana, due to the country's restructuring of most of its public debt worth $49 billion, according to reports.
Ghana exchanged notes worth 87.8 billion cedis that paid an average of 19%, with bonds returning as little as 8.35%, causing losses for financial institutions. Many overseas creditors are still in talks with the authorities regarding the issue.
The bank had 167.6 billion naira of debt securities in Ghana, while rival lender Zenith Bank set aside 123.4 billion naira to account for the restructuring.
Guaranty Trust plans to expand credit by no more than 5% in Ghana and limit itself to treasury bills for securities investments.
According to the bank's Chief Executive Officer (CEO), Segun Agbaje the harsh operating environment and high inflation rate in Ghana makes it difficult for businesses to make money and pay back loans.
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: