Ecobank Profit Grows 27.2% To GH¢464.3M In Quarter 3, 2021

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.

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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.

Key Ratios

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

2021       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%