Ecobank Ghana has recorded total equity of GH¢798.4 million, one of the highest in the industry and a capital adequacy ratio of 17.22 percent, above the regulatory requirement of 10 percent.
The bank’s balance sheet witnessed significant growth of 23 percent to GH¢5.7 billion in 2014, compared to GH¢4.7 billion, the previous year while customer deposits grew by 30 percent to GH¢4.2 billion in 2014 compared to GH¢3.2 billion a year earlier.
Lionel Van Lare Dosoo, Chairman of Ecobank Ghana, who disclosed this at the bank’s Annual General Meeting (AGM) yesterday in Accra, said total customer loans at year end 2014 stood at GH¢2.7 billion, up 27 percent from the 2013 figure.
This loan growth occurred across multiple portfolios, including SMEs, corporates, trade financing and consumer lending.
Loan deposit ratio for 2014 stood at the 65.5 percent same as last year.
Income statement highlights
The board chairman said the bank delivered a growth of 45 percent on total income to close at GH¢857.7 million in 2014 compared to GH¢589.6 million in 2013.
Profit-before-tax (after impairment charges of GHS32 million) was GH¢447 million, a 67 percent increase from 2013.
‘Total income distribution shows 65 percent net interest income and 35 percent non-interest income. Net interest income grew by 43 percent to GH¢555.7 million on the back of a loan book growth of 27 percent. Non-funded income continues to be a key income source for the bank’s businesses and in 2014, its net fee and commission income saw a growth of 34 percent, with trading income showing an impressive increase of 74 percent.
‘Strong recovery efforts, coupled with a successful clean-up of our post-merger, inherited loan loss provisions resulted in a 42 percent decline in impairment charges from 2013. Consequently, our non-performing loans have seen significant decline to 1.78 percent from 5.9 percent in 2013.’
He stated that despite inflation of 17 percent and capital investments in its business, Ecobank Ghana efficiently managed its expenses to end 2014 with a cost income ratio of 44.2 percent compared to 45.3 percent in 2013.
Samuel Ashitey Adjei, Managing Director of Ecobank Ghana, said the bank declared an ordinary dividend of GH¢0.79 from GH¢0.43 in 2013, representing an increase of 83.7 percent.
Ecobank Ghana’s share price increased by 35.4 percent over the last 12 months from GH¢5.61 as at 1st January, 2014 to GH¢7.6 as at 31st December, 2014.
This compares favourably to the growth in the Ghana Stock Exchange (GSE) index of 5.4 percent for the same period.
‘Our domestic banking segment grew its total revenue by 44 percent to GH¢380 million from GH¢263 million in 2013 and contributed a total of 44 percent to the bank’s total revenue. Corporate bank and treasury also grew by 40 percent and 55 percent to end the year at GH¢270 million and GH¢208 million respectively, with a contribution of 32 percent and 24 percent to total revenue.
CSR figures increased by 70 percent from GH¢1.434 million in 2013 to GH¢2.441 million in 2014.
By Samuel Boadi
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