TTB merger boosts Ecobank Ghana profits, growth

Ecobank1Ecobank Ghana’s merger with The Trust Bank (TTB) and efficient cost management contributed to the bank’s strong growth in earnings in 2012, Board Chairman Lionel Van Lare Dosoo said on Friday.

Addressing shareholders at the Bank’s annual general meeting, Mr Dosoo said the synergies of the merger, coupled with the momentum established in recent years, had resulted in the phenomenal growth for 2012.

“We are reporting an impressive 76 per cent year-on-year growth in profits before tax from GH₵106 million to GH₵186 million and a 37 per cent return on equity,” Mr Dosoo said.

The results, he said, reflected a strong performance in all the bank’s income lines, as the bank delivered good profitable growth in both interest and fee incomes.

Net interest income constituted 64 per cent of total income, while non-interest contributed the remaining 36 per cent.

He said the bank established a strong track record of driving efficiency improvements and despite the increased costs relating to the merger and other inflationary trends, it was worth stating that in 2012 the bank’s cost-income ratio fell to 50 per cent from 52.5 per cent in 2011.

Provisions for credit losses increased to GH₵25.3 million from GH₵6.1 million and non-performing loan ratio stood at 5.1 per cent due to the additional growth in SME portfolio.

Mr Samuel Ashietey Adjei, Managing Director said with TTB merger an increased portion of the bank’s business currently went to SME sector.

“We continued to render support to businesses and individuals in order to improve livelihoods, thus contributing to the economic growth and development of the country as reflected in a 64 per cent loan book growth to GH₵1.39 billion from GH₵0.8 billion.

Shareholders approved a dividend of GH₵0.29 up from GH₵0.24 declared last year, a 21 per cent increase.

Source: GNA

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