Ecobank posts impressive results

BY: Suleiman Mustapha
Mr Daniel Sackey — Managing Director of Ecobank Ghana

Ecobank Ghana has emerged as one of the most profitable banks in the country with a profit before tax of GH¢894 million.

This represents a growth of 14 per cent.

The bank grew its total revenue by 10 per cent to GH¢2 billion. The growth in total revenue was driven mainly by a 13 per cent increase in net interest income to GH¢1.5 billion and 24 per cent rise in net fees and commissions to GH¢317.6million

This was achieved through increased volumes of earning assets, which was funded by the bank’s strong deposit growth of 12 per cent to GH¢13.2 billion, which was the highest in the banking industry for 2021.

The Managing Director of Ecobank Ghana, Daniel Sackey, said on the sidelines of the bank’s virtual Annual General Meeting in Accra that the bank had maintained a robust risk management posture to ensure that it improved its asset quality matrices.

“All these, coupled with a robust risk management structure, which is designed to ensure a reduction in non-performing loans, are the key factors for our success”, Mr Sackey said.

The bank’s growth was boosted by a strong total asset growth of 12 per cent to GH¢17.93 billion, with owners’ equity rising by 10 per cent to GH¢2.7billion last year.

Ecobank Ghana ended 2021 with the largest loan book of GH¢5.7 billion, representing 14 per cent.

Positive trends

The Managing Director said the bank’s first quarter performance for 2022 had been encouraging and expected the growth trend to remain positive but mindful of the headwinds due to the current inflationary pressures and supply chain disruptions.

“We are aware of the measures being implemented by the government to deal with the increasing inflationary pressures and its adverse impact on the macroeconomic environment”, he said.

“While we are optimistic of a recovery in the medium-to-long term, in the near term we are committed to working with our clients to support them to navigate this difficult period,” Mr Sackey added.

Investment in technology

He said the bank in 2021 invested heavily in technology and made significant upgrades to two critical platforms - Ecobank Online and Omnilite to provide better user-experience for its customers.

“We have also upgraded and repositioned our Contact Centre into a multilingual and multicultural customer engagement centre that responds to and serves our customers around the clock seven days in a week”, he said.

The combined effect of the investment has resulted in a number of digital transactions growing by 36 per cent against a seven per cent growth in-branch transactions in 2021.