Business / Economy
Banks adopt conservative lending as polls loom
09 May 2013 at 06:15hrs | Views
Local banks are expected to adopt a cautious lending approach due to the high levels of non-performing loans and uncertain economic environment as the country gears for elections later this year, a local research firm has said.
In its full year 2012 (FY12) banking sector analysis, MMC Capital said despite recording improved earnings in the year under review, local banks may in the coming months be more conservative and fail to meet the loan appetite for the banking public before the polls.
Total profit after tax for the reporting banks, according to the report, stood at $132 million, a 23.4% increase from $107 million reported during the same period last year.
The total banking sector assets grew by 20% from $4.74 billion as at 31 December 2011 to $5.70 billion as at 31 December 2012.
In its full year 2012 (FY12) banking sector analysis, MMC Capital said despite recording improved earnings in the year under review, local banks may in the coming months be more conservative and fail to meet the loan appetite for the banking public before the polls.
Total profit after tax for the reporting banks, according to the report, stood at $132 million, a 23.4% increase from $107 million reported during the same period last year.
The total banking sector assets grew by 20% from $4.74 billion as at 31 December 2011 to $5.70 billion as at 31 December 2012.
Source - newsday
