Ecobank records GH¢550m profit after tax

• Posted on April 19, 2021April 19, 2021
• by Nana Kwesi Coomson
• Comment

-It represents 24% increase in 2020 over the 2019 figure of GH¢445m

In spite of the ravages of the COVID-19 pandemic, Ecobank Ghana Limited showed sterling performance in the 2020 financial year, growing profits (before tax) from GH¢642 million in 2019 to GH¢782 million in 2020, representing a 22% increase.

The bank’s profit after tax for 2020 went up 24% to GH¢550 million from GH¢445 million in the previous year.
In terms of total assets, Ecobank moved from GH¢13 billion in 2019 to GH¢15.9 billion in 2020, representing a 22% jump, driven by deposits, which also soared 22% for the year under review.
Return on average assets (ROAA) increased from 3.4% in 2019 to 3.8% in 2020 while return on equity (ROE) soared to 26% in 2020 from 25% for 2019.
Commenting on the performance, Executive Director and Regional Chief Finance Officer for Anglophone West Africa at Ecobank, Dr Edward Botchway said for Ecobank Ghana Limited, the year 2020 put the bank’s digital capabilities to the test, and, thankfully, based on the bank’s performance,”we can say we passed the test.”
 He added that “all the preparations the bank had done before the COVID-19 pandemic hit proved overwhelmingly useful, as it gave the bank a competitive advantage during the pandemic.
According to Dr Botchway, the pandemic validated the bank’s digital strategy and justified the investments sunk into improving its various digital platforms.
“Prior to the onset of the pandemic, we had made a strategic bet that the future of   banking in Ghana was going to be a lot more digital and so we had spent the years investing, upgrading and up-scaling our digital platforms so they could afford customers the convenience of banking with us digitally,” he explained.
Having prepared for that kind of future which compelled banks and other financial institutions to serve customers digitally, the adverse impact of the pandemic on the bank’s operations was well contained.
Dr Botchway maintained that before the pandemic hit the world and communities where the bank operates, “80 per cent of the transactions at Ecobank was not in the branch but on digital platforms so our customers were already accustomed to banking with us remotely.”
“When COVID-19 prevented people from wanting to come to the banking halls to do their transactions, it was a scenario that the bank had prepared for and so was ready for; with the right investment in the digital space,  we could still operate effectively and efficiently,” Dr Botchway submitted.
Describing the bank’s 22% increase in deposits as strong growth numbers, Dr Botchway said the feat was achieved with minimal physical interaction, stressing it was due to the appropriate technology platforms and is a testament to the confidence of the Ghanaian public in the Ecobank brand.
Beyond the impressive growth indicators, the entirety of the bank’s operations was efficient in spite of the COVID-19 pandemic.
 Customer service was not adversely impacted by the pandemic, as “our back-office operations continued to be efficient and staff were able to operate effectively, whether in the office or at home.”
 “Our pledge to our retail, SME and Corporate Banking clients is that we will continue to work with them to ensure that we exceed their expectations.
“We are confident that with our superior technology, dedicated staff and our un-matched banking network across the African continent, we will continue to delight our customers even in these difficult times as we all ensure the safety and security of our families and our fellow Ghanaians,” he stated.

By Isaac AIDOO, Accra