ECOBANK Ghana PLC has despite the shocks of the Domestic Debt Exchange Programme and the general decline of the Ghanaian economy, the bank managed to increase its total revenue for 2022 by 40.3% to 2.97 billion GHC.
Ecobank Ghana PLC explains that this growth was driven by mainly increases in net interest income, as well as a successful implementation of its trade and cash management initiatives.
Speaking held its annual General Meeting on Thursday Board chairman of Ecobank Ghana PLC Samuel Ashitey Adjei while noted that “Ecobank Ghana has demonstrated resilience and achieved a healthy performance. Income Statement Highlights Total revenue increased by 40.3% to GHS2.97 billion, reflecting our income generating capabilities in difficult economic circumstances. Net interest income remained the largest revenue contributor at 85%, while non-interest income accounted for 15%. Interest income grew by 63%, supported by higher loan volumes and increased lending rates.”
Samuel Ashitey Adjei however stated that “the interest expense increased by 108.7%, reflecting the disruptive operating environment. Our treasury business was also impacted by the current crisis, resulting in a decline of 82.5% in trading income compared to the previous year Operating expenses increased by 37% due to unprecedented inflationary pressures and exchange rate depreciation.”
Adding that “the impairment charge on our government bonds due to domestic debt restructuring at the end of 2022 resulted in a net impairment charge of GHS1.7 billion and a loss of GHS27.2 million before tax payment. Balance Sheet Highlights our balance sheet remained strong with total assets of GHS25.9 billion, a growth of 44.5% from the previous year. Customer deposits reached GHS20.4 billion, up by 54.4%.”
On his part, the Managing Director of Ecobank Ghana PLC Daniel Nii Kwei-Kumah Sackey assured that the banks digital platforms will be safe and secured to protect the funds of all customers from fraudsters.
”One of the major global shocks was the COVID-19 Pandemic. The virus threatened the basic foundations of our business. Ecobank’s ability to survive the Pandemic and serve our clients was, amongst other things, primarily attributed to its foresight in investing heavily in technology and digital innovation. Our convenient and accessible digital solutions helped us stay ahead of the curve. The launch of our flagship mobile banking application in 2016, when many were still hesitant to embrace digital banking, proved a game-changer.”
Despite the economic challenges, the bank continued to support business growth, as evidenced by its net loan book of GHS8.9 billion, which is one of the largest in the industry.
The bank’s capital adequacy ratio of 14.63% in December 2022 was above the regulatory requirement of 10%, reflecting its healthy capital position.
Source: citibusinessnews.com
