Ecobank Group’s revenue up $506m in six months

The Ecobank Group, says its total revenue for the first six months in 2011 which ended June 30, is $506 million, up by 24%.

According the pan-African banking group with presence in 32 African countries including Ghana, the increase was driven by a 44% growth in non-interest income and a 10% growth in net interest income.

“Revenues were $506 million, up 24%, from the first six months of 2011. The increase was primarily driven by a 44% growth in non-interest income and a 10% growth in net interest income – Growth in non-interest income was driven by higher trade finance fees, fees and commissions on loans, and trading income underpinned by the growth in our international and regional trade,” the Group said in its 2011 half-year financial results.

The positive impact of asset growth on net interest income was offset by a decline in net interest margin from 6.5% in the first six months of 2010 to 6.0% in the current period, the bank noted.

Its $41.5 million profit before tax in West Africa excluding Nigeria was up 19% reflecting the solid growth in pre-tax profits in Ghana, Guinea and Sierra Leone, offset by higher provisions for credit losses in Liberia.

Commenting on the results, Arnold Ekpe, Group Chief Executive Officer said “Our balance sheet, which we continue to de-risk, remains strong and ended the period with a capital adequacy ratio of 19.5% and healthy liquidity. Our focus on building a stable funding base consisting of core deposits was evident in the deposit growth of 31% to $9.0 billion.

Mr Ekpe indicated that the political crisis in Côte d’Ivoire, which led to the temporary closure of the bank’s operations in that country, had some impact on the company’s growth but “the 34% increase in net income demonstrates the stability our pan-African diversification model provides to our performance.”

The company plans to acquire majority stakes in Ghana’s Trust Bank and Oceanic Bank in Nigeria.

By Ekow Quandzie