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Ecobank Ghana net profit earnings up 12%

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Ecobank Ghana posted a 12 per cent jump in 2010 net profit earnings, despite the strong and increasing competition in the country’s banking industry.

Ecobank Ghana’s net profit rose to GH¢60.11 million in 2010 from GH¢53.85 million, a year ago, boosted by net interest income.

Board Chairman, Lionel Van Lare Dosoo, said the bank attained the results by leveraging on its strong brand, the loyalty of customers and increased contribution from all sections of the financial entity.

He was addressing the bank’s Annual General Meeting in Accra on Thursday.

Mr Dosoo said in addition, the bank was able to stem the effects of low margins as a direct result of improved economic stability and the declining returns on treasury bills through its strategy to grow its interest income through the creation of good quality assets.

As a result, net interest income grew by 32 per cent from GH¢82.45 million to GH¢109.06 million.

Net Fee Income, on the other hand, was up marginally by 2.1 per cent as a result of diminishing spreads arising from the relative stability of the Cedi to the major currencies in 2010.

Mr Dosoo said the performance led to about 25 per cent growth in Profit before Tax from GH¢72.68 million in 2009 to GH¢90.7 million in 2010.

The bank also grew its balance sheet by 10 per cent from GH¢1.38 billion to GH¢1.52 billion last year, a trend the Board Chairman said showed the bank’s focus to scale the competition and take advantage of the stability in the economy.

The bank was also able to mobilise a total of GH¢1.11 billion, up 21 per cent from GH¢922 million.

On the outlook for 2011, Samuel Ashitey Adjei, Managing Director of Ecobank Ghana said the bank would position itself to take advantage of the opportunities in the oil industry.

“We will take advantage of the opportunities presented by the oil find and establish ourselves as the bank of choice for oil transactions in the country,” he said.

The shareholders approved a dividend of GHp20 per share for a total dividend payment of GH¢46.1 million, representing a payout ratio of 90 per cent of profit after tax and after transfer to statutory reserves.

Source: GNA

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