Ecobank Ghana ended 2015 with a modest three per cent growth in profit before tax to close at GH¢ 458.6 million beating most of its peers in the first tier banking sector that recorded negative growth.
The bank had in 2014 posted a profit before tax of GH¢ 446.9 million demonstrating the underlying strength of the business.
Other banks in the first tier category such as Ghana Commercial bank posted a negative nine per cent growth while Stanbic and Barclays bank posted negative eight per cent and negative five per cent growth respectively. Standard Chartered Bank recorded the biggest loss by registering a negative 67 per cent growth.
The audited 2015 financials published by banks clearly indicate that Ecobank also made more revenue than any other bank in Ghana for the period under consideration.
Ecobank’s total income revenue also crossed the one billion Ghana cedis mark with a 19 per cent increase to hit GH¢ 1,023.1 million compared with the 2014 figure of GH¢ 857.7 million with all of the revenue lines recording impressive growth.
Ecobank Ghana recorded those gains in the midst of a challenging macroeconomic environment that affected the fortunes.
The Chief Finance Officer (CFO) of Ecobank, Mr Edward Nartey Botchway, acknowledged the challenging times facing the banking industry and said Ecobank will focus on addressing its customer needs.
Risk management
He boasted that, “profitability and growth sustainability is not only a vision, but hugely a resultant of excellent management disciplines, an unrelenting focus on execution, consistent management of risks, competitive product sets and outstanding customer service”.
Mr Botchway said most of the bank’s growth was driven by a 15 per cent and 14 per cent improvement in Net Loans and Deposits respectively.
The bank’s total assets now stands at GH¢ 6.6 billion, which further strengthens its position as the biggest bank in Ghana.
This is because GCB, which until 2013 was the biggest bank now trails Ecobank with GH¢4.6 billion with Stanbic bank posting GH¢4.2 billion followed by Barclays bank with GH¢3.6 billion whiles Standard Chartered bank closed 2015 with assets worth GH¢ 3.3 billion.
Other financial highlights of the bank show that Net interest income on fees and commission both recorded a 23 per cent growth.
There was also a growth in customer deposits which recorded a 14 per cent to close the year with GH¢ 4.8 billion compared with the GH¢4.2 recorded in 2014.
Loans and advances to customers also grew by 15per cent to hit GH¢3.1 billion, depicting the bank’s commitment to its clients and supporting business development in the country.
The bank also achieved a return on average equity and assets of 38.1 per cent and 5.2 per cent respectively.
In the last 12 months, the banks share price has also increased to by three per cent, indicating the confidence the investor community had in the bank
Ghana’s number one bank
Ecobank has grown consistently over the years to become one of the leading banks in Ghana and a well-recognized brand in the Ghanaian banking industry.
The bank provides consumer, commercial, corporate and investment banking and other financial services to its well diversified clients across the country.
In the words of the Chief Finance Officer Edward Botchway “despite intense industry competition, the Bank is well placed for the years ahead. In 2016, we will continue to invest in transforming our business to improve customer experience alongside our focus on operational efficiency. We are determined to work even harder to retain our customer loyalty. Our commitment to improving the customer experience remains ultimately paramount”.
The Bank currently operates through a nationwide network of 78 branches and 195 ATMS; as well as connected to the rest of the Ecobank Group in 35 countries across Africa. We ended 2015 with staff strength of 1,462. Despite intense industry competition, the bank is well positioned for the years ahead.