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Zenith Bank to Boost Credit as Loan Ratio Falls Below Threshold

  • Lender targets retail credit to meet loan-to-deposit ratio
  • Nigeria’s second-most valuable bank posted 9% profit increase
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Photographer: George Osodi/Bloomberg

Zenith Bank Plc, Nigeria’s second-biggest lender by market value, plans to accelerate lending in the second half after its loan-to-deposit ratio fell short of the regulator’s minimum target.

The bank’s loan book dropped 3% to 1.95 trillion naira ($5.4 billion) for the six months through June, while customer deposits increased by the same percentage to 3.8 trillion naira. That pushed its loan-to-deposit ratio to 51.2% from 54.6% a year ago. Nigeria’s central bank last month asked lenders to use at least 60% of their deposits for loans by the end of September or face a penalty as it aims to fuel credit to grow the economy.