Dan Sackey is the Managing Director of Ecobank Ghana Ecobank Ghana has recorded a increases of 32.8% year-on year profit before tax to ¢474.9 million in the first half of the year.
This consolidated its gain as one of the top three profitable banks in the country.
However, for profit-after-tax, the bank recorded ¢320.4 million in the first half of the year, as against ¢249.8 million a year ago.
According to its unaudited June 2021 Financial Statement, the significant increase in profit was as a result of huge growth in all its income lines. Interest income shot up from ¢713m in June 2020 to ¢732.9m in June 2021 as interest costs was within a manageable limit, whilst net trading income also went up by 31.6% to GH¢152.8 million in June 2021, indicating that the bank has begun increasing its financing of exports, imports and Letters of Credit .
Consequently, Return on Average Equity grew by 27.8%, while Return on Average Assets was estimated at 4.2%.
From the financial statement, the earnings could have been more if for not a loan write off of about ¢110.9 million in June 2021, though impairment had gone down from the same period last year.
Earnings per share however declined to ¢1.99, compared with ¢2.09 in March 2021. It was however higher than ¢1.55 the previous year.
Cost-income ratio which measures the efficiency of the bank stood at 39%, signaling one of the most efficient bank in the country.
The balance sheet size almost hit ¢30 billion, slightly higher than the little over ¢29 billion recorded in the first quarter of 2021. This is due to a strong growth in deposits as customer deposits hit ¢11.9 billion cedis in June 2021, as against ¢10.4 billion cedis in June 2020.
In terms of stability of the bank, non-performing loans rose from 12% in March 2021 to 13.86% in June 2021. This is however lower than the industry average of about 17%.
Capital Adequacy Ratio-a measurement of a bank’s available capital to its Risk Weighted Assets, was way above the industry average at 18.54% in June 2021, signifying a stronger bank.Overall, Ecobank Ghana is one of the most liquid banks as liquidity ratio stood at 107.25% in June 2021, as against 94.06% a year ago. Key Ratios Cost to income ratio 39.65% Return on Average Assets 4.27% Return on Average Equity 27.84% Non Funded Income to Total Income 33.70% Financial Highlights June 2021 – June 2020 […]