Business News of Monday, 8 April 2013
Source: B&FT
Ecobank Ghana, says it will consolidate its leadership of the industry by continuously providing its customers with excellent services from a world-class financial institution.
The bank said its strong results in 2012 – when profit before tax grew by 76 percent year-on-year from GH¢106 million to GH¢186 million, giving a 37 percent return on equity – reflect its strength, strategy, and resolve to lead the industry.
The results showed a strong performance on all the bank’s income lines as it delivered impressive growth in net-interest and fee-based income. While non-interest income contributed 34 percent to total income, net-interest income constituted 64 percent.
The bank’s gross loan book grew by 69 percent from GH¢0.86 billion to GH¢1.46 billion, while deposits increased by 53 percent to GH¢2.46 billion. Total assets stood at GH¢3.43 billion at end of year 2012, a growth of 61 percent from prior year numbers. In addition, stated capital grew by 226 percent, while total equity soared by 74 percent.
The size and strength of the bank’s balance sheet reflect the positive impact of its merger with The Trust Bank last year. This was evidenced by Ecobank Ghana having the largest balance sheet and becoming the most profitable bank in the industry immediately after the merger through to the end of the third quarter of 2012.
Indications are that the synergies sought from the merger of Ecobank and The Trust Bank Ltd have yielded the desired results, as the bank’s operations have further deepened into the small- and medium-scale enterprise sector as well as local corporate markets.
The bank has indicated that the effects of the synergy will be more pronounced in 2013. As a member of the Ecobank Group, which is present in more countries in Africa than any other bank in the world, Ecobank Ghana’s rise has been phenomenal. The bank, which began operations on 19th February, 1990 with one branch and a handful of staff, has relentlessly gained market share.
It said its present position as the largest in Ghana in terms of assets, deposits, loans and revenue is “a testament to the ingenuity of the African spirit.” With a total branch network of 78 as at the end of 2012, Ecobank has presence in eight regions in Ghana and seems to run an efficient operational set-up – as demonstrated by a reduction in its cost/income ratio from 52.5 percent in 2011 to 50 percent as at December2012.
Ecobank said with the commitment, dedication, passion and zeal of its management and staff, it will continue to be the financial institution of choice for the ever-growing banking populace.