Ecobank profit up 16% to GHS381m in Quarter

By InstinctBusiness Oct 30, 2020 0

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