Ecobank profit up 16% to GHS381m in Quarter

Ecobank Ghana recorded a strong financial performance for the third quarter of this year as profit went up by 16% to GHS381 million despite covid-19 pandemic, according to its 2020 Third Quarter Results.

The bank’s Return on Equity- an important profitability indicator for shareholders- also grew by 28%.

Ecobank which is Ghana’s biggest bank according to the 2020 PwC Banking Survey benefited tremendously from non-funded transactions during the period, as non-funded income contributed 26% to total income.

The strong growth in income resulted in an increased earnings per share of GHS1.58, compared with GHS1.36 pesewas a year ago.

But for a high provision for bad debt made, the bank will have recorded very high earnings.

The balance sheet size stood a little over GHS27 billion with customer deposits growing by 19% to hit GHS10.6 billion.

In terms of stability of the bank, non-performing loans stood at 12.83%, lower than the industry average of 15.5%.

Capital Adequacy Ratio-a measurement of a bank’s available capital expressed as a percentage of a bank’s credit exposures, was way above the industry average at 17.30%, signifying a stronger bank.

The bank is highly liquid as customers can easily demand for their deposits anytime, any day.

Key Ratios

Cost to Income                                                                                                                45%

Return on Average Assets                                                                                            4%

Return on Average Equity                                                                                          28%

Non Funded Income to Total Income                                                                      26%

Financial Highlights September 2019 – September 2020

2020        2019

Profit before Tax                              546.6m           445.09m                                     16%

Total Assets                                 14.54bn                       11.63bn                                 25%

Deposits                                      10.68bn                8.95bn                                         18%

Source: Charles Nixon Yeboah