Ecobank reports 7.6% growth in profit in the first half of 2022
Ecobank Ghana recorded 7.6% profit growth in the first half of 2022 despite economic uncertainties in the country.
According to its Q2 2022 financial statements, Ghana’s largest bank saw its profit rise to 344.9 million yen in June 2022 from 320.4 million yen in June 2021.
This is driven by 29% and 24% growth in net interest income and net fees and commissions to ¢818.7 million and ¢197 million respectively in 2022.
Accordingly, earnings per share were estimated at 2.14¢ in June 2022, compared to 1.99¢ in June 2021.
The bank was also able to reduce its bad debts to ¢100.5 million in the 2nd quarter of this year, compared to ¢110.9 million recorded during the same period last year.
The balance sheet remains strong
The size of the balance sheet stood at ¢40.4 billion in June 2021, higher than the ¢29.9 billion recorded in the first half of 2021. This was due to strong deposit growth of 38%, deposits customers reaching ¢16.65 billion in Q2 2022, compared to ¢11.97 billion in the same period of 2021.
In terms of bank stability, the bank’s non-performing loans fell to 10.92% in July 2021 from 13.86% in June 2021. This is below the industry average of around 14.41 %.
The capital adequacy ratio – a measure of a bank’s available capital relative to its risk-weighted assets – was 16.05%, below the industry average of 19.4%.
The liquidity ratio also fell to 81.9% in June 2021, from 107.25% in June 2021.