Ecobank Group’s audited results for the year ending December 31, 2022 shows that the bank grew profit before tax (PBT) by as much as 13 per cent to $540m.
The results, which was released on Thursday also shows that PBT growth leveraged benefits of the bank’s newly diversified business model.
Join our WhatsApp ChannelIt reported solid profit growth in Commercial Banking up 100 per cent to $134m and Consumer Banking, up 50 per cent to $130m but was partially offset by a decrease of 17 per cent to $333m in Corporate and Investment Banking PBT, mainly due to impairment charges associated with Government of Ghana’s debt restructuring exercise.
The bank also reported net revenues of $1.9bn in the period under review.
As part of its commitment to shareholders, the bank also announced a proposed final dividend payout of $28m or 0.11 US cents per share subject to shareholder approval at its next AGM.
On Ecobank Profit
Chief Executive Officer of Ecobank, Jeremy Awori, while speaking on the result in a statement accompanying the bank’s financial results, stressed that Ghana’s debt restructuring exercise placed the company in a difficult position during the financial year.
He said, “Ecobank’s strong 2022 performance reflects the strength of our diversified business model, growth momentum and efficiency, and was achieved despite operating in a challenging macroeconomic environment, which also included the difficulties that Ghana’s debt restructuring exercise placed on us.
“We grew profit before tax by 13 per cent to $540m, translating into earnings per share growth of 10 per cent and delivering a record return on shareholders’ equity of 21.1 per cent With stubborn inflationary pressures in 2022, improving our cost-to-income ratio to 56.4 per cent demonstrates our discipline around cost management.
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Moreover, we further reduced the amount of non-performing loans to 5.2 per cent, reflecting our continued progress in improving credit quality. Our balance sheet is well capitalised, with a total capital adequacy ratio of 14.4 per cent above the regulatory minimum.”
Awori, a Kenyan, started as the Group CEO of Ecobank earlier this month.
According to the bank, the gross impairment charges on loans and advances were $270 million for 2022 compared with $374 million in 2021, reflecting a decrease in non-performing loans. The net impairment charges on loans and advances were also lower in 2022 at $10m compared to $170 million in 2021.
In the same vein, the bank said that hyperinflation in Zimbabwe and South Sudan resulted in a $34m net monetary loss.
Its payment revenues grew $25m or 12 per cent to $234m (representing 13 per cent of the Group net revenues), driven by merchant acquiring, cards, and wholesale payment and its total assets increased by $1.4bn to $29.0bn, primarily driven by growth in loans and investment securities driven by customer deposits growth.
