Ecobank Ghana revenue jumps to 45% in 2014
Ecobank Ghana posted a 45-per cent growth in 2014 revenue to GH₵857.7 million, compared with GH₵589.76 million in 2013.
The bank also recorded 67 per cent increase in profit before tax after impairment charges at GH¢447 million.
Mr Samuel Ashitey Adjei, Managing Director of the bank, made this known at a shareholders’ meeting in Accra, adding the bank’s results were achieved despite the challenging environment for the banking industry locally and worldwide.
He said the Bank adopted various strategies during the year under review, to achieve sustainable credit growth, improve asset quality and maintain a well-established credit portfolio.
“We were able to grow net income and tightly control expenses,” he said, adding that the performance was reflective of the bank’s consistent strategy of focusing on growing revenue and managing costs in the face of highly competitive business environment,” he said.
Ecobank Ghana also 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 per cent.
The bank’s balance sheet saw 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 per cent to GH¢4.2 billion in 2014, compared to GH¢3.2 billion a year earlier.
Total customer loans at the end of 2014 stood at GH¢2.7 billion, up by 27 per cent 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 65.5 per cent, the same as last year, while total income distribution showed 65 per cent net interest income and 35 per cent non-interest income.
Net interest income grew by 43 per cent to GH¢555.7 million on the back of a loan book growth of 27 per cent.
Non-funded income continued 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 per cent, with trading income showing an impressive increase of 74 per cent.
“We have to take risks but balanced with returns by ensuring that we have the right strategies and robust risk management systems in place to monitor and minimize these risks,” he said.
Mr Adjei said the bank’s strong liquidity and capital position allowed it to make investments for future growth.
“Our operational efficiency improved significantly in 2014, with significant improvements in Return Average Equity, Return on Assets, Efficiency ratios, non-performing loans and other key performance indicators,” he said.
He said the domestic banking segment grew its total revenue by 44 per cent to GH¢380 million from GH¢263 million in 2013, and contributed a total of 44 per cent to the bank’s total revenue.
Corporate bank and treasury also grew by 40 per cent and 55 per cent to end the year at GH¢270 million and GH¢208 million respectively, with a contribution of 32 per cent and 24 per cent to total revenue.
The bank declared a dividend of GH¢0.79 up from GH¢0.43 in 2013, representing an increase of 83.7 percent.
Corporate Social Responsibility figures increased by 70 percent from GH¢1.434 million in 2013 to GH¢2.441 million in 2014.
Source: GNA