Pan African bank, Ecobank Ghana recorded 27.2% year-on-year growth in profit to ¢464.3 million, as it consolidated its gains as the number one bank in the country.
According to its 3rd Quarter Financial Statement, non-funded income contributed significantly to its ‘bottom line’ as growth was up 31.19% year-on-year.
As a result, Return-on-Equity was estimated at 26.37%, as shareholders will be smiling home with GH¢1.92 earnings per share.
This is against GH¢1.58 registered in September 2020.
Return-on-Assets was also estimated at 3.96%, a little lower than the 4.2% recorded in June 2021.
From the financial statement, Ecobank Ghana is one of the most efficient banks in the country with a Cost-to-Income ratio of 43.3% in September 2021.
The bank was also able to bring down its bad loans down to GH¢147.3 million in the first nine months of this year, as against GH¢182.8 million recorded the previous year.
However, other operating expenses went up significantly to GH¢315.4 million in September 2021, as against GH¢269.6 million in September 2020.
The balance sheet size went above ¢31 billion, higher than the about GH¢30 billion, recorded in the first half of 2021.
This is due to strong growth in deposits by 18.60% as customer deposits hit GH¢12.5 billion in the 3rd quarter of 2021, as against GH¢11.9 billion in half-year 2021.
In terms of stability of the bank, Non-Performing Loans reduced marginally to 13.59% in September 2021, from 13.86% recorded in June 2021. This is however lower than the industry average of about 17.3%.
Capital Adequacy Ratio-a measurement of a bank’s available capital to its Risk-Weighted Assets, was way above the industry average at 18.12% in September 2021, signifying a stronger bank.
The liquidity ratio however declined to 78.9% in September 2021, from 107.25% in June 2021.
Cost to income ratio 43.39%
Return on Average Assets 3.96%
Return on Average Equity 26.37%
Non-Funded Income to Total Income 31.19%
Financial Highlights June 2021–June 2020
Profit before Tax 702.90 546.64m 27.22%
Total Assets 16.7bn 14.5bn 15.47%
Deposits 12.55bn 10.68bn 18.60%