Robust risk management framework, dedicated staff, loyal customers and the desire to drive shareholder value has extended Ecobank Ghana’s lead in the banking sector with an impressive GH¢281.82 million profit before tax (PBT) posted in 2015 half-year results.
This represents a 32-per cent growth over the previous year. Comparative results from the other top notch banks show that the bank that comes close to Ecobank is GCB Bank, which posted GH¢216.46 million in half year results, also representing 32 per cent over previous year’s performance.
Barclays Bank posted GH¢144.38 million in PBT, being 23 per cent growth over the previous year’s, while CAL Bank posted GH¢112.22 million, representing 28 per cent, with Standard Chartered Bank posting GH¢111 million, negative 20 per cent growth. Stanbic Bank recorded GH¢100.36 million, representing a growth of six per cent.
Graphic, analysis of the half year performance of banks as published indicate that on fees and commissions, the Pan African bank recorded GH¢104.63 million, up by 58 per cent, compared to that of GCB Bank, which posted GH¢46 million, representing a two per cent growth, with Standard Chartered, Stanbic and Barclays Bank posting GH¢37.12 million or negative 19 per cent growth, GH¢49 million or 44 per cent growth and GH¢ 43.8 million representing 51 per cent growth, respectively.
For a bank that began 25 years ago, Ecobank’s 2015 half year financial results show a remarkable growth in the bank’s total assets by 23 per cent to close the period with GH¢6.84 billion to beat GCB Bank, until 2012 the country’s biggest bank, which posted GH¢4.86 billion, with Standard Chartered recording GH¢3.74 billion.
Comparative performance
In terms of deposits, the Pan African Bank again topped the count with GH¢5.26 billion, compared to GCB Bank’s GH¢3.19 billion.
Standard Chartered Bank also posted a customer deposit of GH¢2.4 billion, while Stanbic Bank posted GH¢3.12 billion. Barclays Bank posted GH¢2.35 billion to beat CAL Bank, which recorded GH¢1.56 billion deposits.
As of the end of June 2015, Ecobank had recorded the highest stated capital of GH¢226.64 million, beating GCB Bank and CAL Bank which posted GH¢100 million each, while Standard Chartered Bank and Barclays Bank posted GH¢61.63 million and GH¢115.046 million respectively.
Stanbic Bank maintained GH¢108.241 million capital.
The Pan African Bank also recorded a shareholders’ fund of GH¢762.73 million, with GCB Bank recording GH¢757.25 million, beating Standard Chartered Bank which maintained GH¢560.69 million, and Barclays Bank also maintained a shareholders’ funds of GH¢511.25 million, going past CAL Bank and Stanbic Bank that recorded GH¢434.24 million and GH¢487.55 million respectively.
Robust risk management strategy
The Chief Finance Officer of Ecobank Ghana, Mr Edward Nartey, attributes Ecobank’s low non-performing loan (NPLs) ratio to its robust risk management framework, which has ensured a healthy loan portfolio.
A look at the results showed that the drivers of the profit were strong growth in most of the banks’ interest and fee and commission earning businesses.
Ecobank Ghana has a favourable A1+ (GH) (short term) and AA- (GH) (Long term) credit rating from global rating agencies.
Compared to the other banks, the Pan African Bank makes more revenue, and officials of the bank attributed this to its efficient staff and strong management team under the able leadership of its Managing Director, Mr Samuel Ashitey Adjei, who took over the leadership mantle in January 2006.
Source: Graphic