In a year that Bank of Ghana revoked the licenses of some banks for operating undercapitalized and were beyond rehabilitation, Ecobank Ghana Limited showed sterling performance in the 2018 financial year, growing profits (before tax) from GH₵358 million in 2017 to GH₵506 million in 2018, representing a 41% increase.
Profit after tax rose 34% from GH¢253 million in 2017 to GH¢339 million in 2018.
Board Chairman of Ecobank Ghana, Mr Terrence Darko told shareholders at the bank’s annual general meeting (AGM) last Friday that the increased profitability was achieved on the back of “strong revenue growth, lower impairment charges, coupled with the successful execution of our cost containment strategies”.
The bank’s revenues shot up 17% to GH₵1.3 billion in 2018 from GH₵1.1 billion in the previous year.
“Our impressive revenue numbers were the result of excellent contribution from all our business units: corporate banking led with a contribution of 38%; consumer banking, 26%; commercial banking, 19%; and treasury, 17%,” Mr Darko told shareholders.
The bank’s customer deposits went up 16% to GH₵7.6 billion in the year under review from GH₵6.5 billion in the previous year, the result of improved product offering and increased customer confidence in the Ecobank brand.
“The increase in customer deposits was broad-based, driven mainly by active customer engagements, enhanced deposit products and supportive digital channels and offering,” Board Chairman Darko stated.
The bank’s loan performance was also impressive, as loans and advances grew from GH₵2.6 billion in 2017 to GH₵4.1 billion in 2018, representing a 55% increase.
Managing Director (MD), Mr Daniel Sackey told shareholders that “our 2018 results demonstrate the resilience of the Ecobank brand”.
According to Mr Sackey, the bank’s impressive revenue numbers, despite a subdued operating environment, was evidence that Ecobank had retained its market leadership in revenue in 2018.
“I am extremely proud of what we have achieved this past year, notwithstanding the ensuing challenging environment,” he told shareholders and staff of the bank.
Ecobank Ghana, the MD assured, was highly optimistic about the country’s banking industry, saying, “We believe the actions implemented by the central bank will improve business and consumer confidence, and drive growth across the sector.
“At Ecobank, we will continue to support sustainable economic growth in Ghana. Amidst the growing competition, we maintain a relentless focus on providing customer-friendly and digitally-enabled services to our clients,” Mr Sackey pledged.
He pledged the bank’s commitment to improving operational efficiency through continuous investment in various initiatives aimed at improving customer experience.
“We believe we are well placed for the years ahead and will continue to return profitability to you, our esteemed shareholders,” he added.
