Ecobank Ghana’s AA credit rating affirmed
Ecobank Ghana‘s credit rating has been affirmed at AA-(GH) and A1+(GH) in the long term and short term respectively; with a stable outlook.
The current ratings are valid until December 2015 and reflect the bank’s established domestic franchise value, resilient financial performance, risk appropriate capitalisation and adequate loan loss reserve, according to the Global Credit Rating Co.
Ecobank Ghana is currently the largest bank in Ghana with an asset size of GHS5.9billion as at the end of third quarter of 2014.
The bank posted a profit before tax of GH¢332.8million for the third quarter of 2014, a 90 per cent jump from the 2013 figure of GH¢175.4million.
Total income increased by 47 per cent GH¢621.1million from GH¢423.8million in 2013 with customer deposits also increasing by 47 per cent to GH¢4.1billion as against GH¢2.7billion in 2013.
Loans and advances to customers grew by 50 per cent to GH¢2.6billion. On operational efficiency, cost to income ratio improved from 45% in 2013 to 40% in 2014 whiles achieving a return on average equity of 47% as well.
The bank’s non-performing loans, as at the end of September 2014, stood at 5.2 percent, down from 6.4% from same period last year.
Over the last 12 months, from 30th September 2013 to same period 2014, the bank’s share price has also increased by 63 per cent.
Source: GNA