Ecobank Ghana posts GH¢444.9m profit after tax in 2019

• Posted on August 10, 2020August 10, 2020
• by Nana Kwesi Coomson
• Comment

One of the top banks in Ghana, Ecobank Ghana Limited posted sterling financial performance at the close of 2019, with total asset size of GH¢13.229 billion, from GH¢10.455 billion in 2018.

This shows an impressive 26% growth in assets between 2018 and 2019 while profit after tax (PAT) shot up from GH¢339.968 million in 2018 to GH¢444.946 million in 2019.
Profit before tax (PBT) for 2019 stood at GH¢642.496 million, from GH¢506,251 million.
Financial statements of the bank published at its annual general meeting held virtually last Friday revealed customer deposits had increased in 2019 to GH¢9.728 billion from GH¢7.608 billion.
Non-funded income growth was led by fees and commission, which was up by 57% compared to same period.
The remarkable performance was achieved in spite of downward pressures on margins; it delivered more products and services to customers, management of the bank stated.
Each of the bank’s business segments grew its full-year total revenues year on year: Consumer Banking by 48%, Commercial Banking by 22% and Corporate Banking by 8%.
Managing director of the bank, Mr Daniel Sackey said the impressive growth in commercial and consumer banking segments reflects the positive outcome of the diversification strategy implemented by the bank in response to declining margins in the corporate banking segment.
“We continue to provide safety and security for our customer deposits, but most importantly, we continue to offer efficient and convenient banking solutions through the bank’s extensive network of over 2,600 agency banking points, more than 240 ATMs, and our industry-leading online and mobile presence,” Mr Sackey stated.
 Board chairman of the bank, Mr Terrence Darko explained that the bank’s PBT was generated after setting aside GH¢216 million as impairment charges.
He assured shareholders that the bank will not relent in its efforts to reduce impairment charges.
“We will continue to ensure that our robust risk management procedures are periodically updated to safeguard the quality of the loan book,” Mr Darko assured further.
Ecobank well capitalised
Ecobank remained well capitalised with total equity of GH¢1.8 billion, one of the highest in the industry and a Capital Adequacy Ratio of 18.58%, well above the regulatory requirement of 13%.
“We are proud of what we accomplished in 2019 because the results reflect how we are helping our customers and returning improved shareholder value,” Mr Darko intimated.
The growth in PBT resulted from the bank’s impressive income of GH¢1.6 billion in 2019, up 21% from 2018.
“This reflects our consistent strategy of a diversified business model and our focus on growing revenue and managing costs and risks even in the face of a highly competitive environment,” the board chair maintained.
“Our total revenue was made up of 67% net interest income and 33% non-interest income, a mix that has come to typify our business model as we harness the benefits of our portfolio mix.”
Net interest income grew by 22% to GH¢1.1 billion on the back of a loan book growth of 30%. Trading income declined by 11% due to thinner spreads, which was reflective of the exchange rate environment in 2019.

By Isaac AIDOO, Accra