Ecobank to pursue loan defaulters
Ecobank Ghana plans to aggressively pursue loans defaulters to recover all outstanding credits that the bank fears might go bad.
Speaking at the bank’s Annual General Meeting in Accra, Acting Managing Director, Mr Morgan Asiedu, said the bank’s non-performing loans had gone up and remained a challenge for the bank.
The 2016 first quarter results posted by the bank show that impairment charges on loans and advances shoot up from GH¢ 3.3 million for the first quarter in 2015 to almost 18 million cedis for first quarter of 2016.
Mr Asiedu assured the shareholders that the non-performing loan book will improve by mid-year.
He added that "we are hopeful that by the end of the second quarter, impairment charges should reduce significantly to under three per cent ".
Ecobank Ghana ended 2015 with a post-tax profit of GHC321 million. Its balance sheet also grew by 16 per cent to GHC6.7 billion in 2015 compared to GHC5.8 billion in 2014.
“Loans and advances to customers was GHC3.1 billion – a growth of 15 per cent from the prior period. Our loan portfolio reflects risk diversification across all business units. Our total customer deposits grew to GHC4.8 billion, an increase of 14 per cent, reflecting increased customer business,” he said.
Total equity of the bank stood at GHC890 million, up 11 per cent, from the previous year.
He said Ecobank Ghana’s credit ratings were affirmed at AA- (GH) and A+ (GH) by the Global Credit Rating Company.
“The ratings are valid till December 2016 and reflect resilient profitability, adequate loan loss reserves and a conservative risk appetite,” he said.
Dividends proposed
Shareholders of Ecobank Ghana are to enjoy a dividend of GH¢ 0.84 per share on the back of strong performance posted by the bank in 2015.
The 2015 dividend, announced at the annual general meeting in Accra is higher than the 2014 figure of GHC0.79 per share.
Former Managing Director of Ecobank Ghana, Mr Samuel Ashietey Adjei, told shareholders that the bank has maintained consistent growth on yearly basis in all its key financial indicators, hence the upward review of dividend for shareholders.
“On the bank of this performance, we propose a dividend of GH¢ 0.84 per share, up from GH¢ 0.79 per share declared last year and we thank you for entrusting us with your investments in the year 2015,” he said.
The bank recorded revenue in excess of GH¢ one billion in 2015, representing a growth of 19 per cent over the 2014 revenue of GHC858 million.
“The increase was primarily driven by net interest income. It is important to note that this is the first time a bank in Ghana has earned revenue in excess of one billion Cedis,” he said.
Ghana’s number one bank
Ecobank has grown consistently over the years to become one of the leading banks in Ghana and a well-recognised brand in the Ghanaian banking industry.
The bank provides consumer, commercial, corporate and investment banking and other financial services to its well diversified clients across the country.
In the words of the Chief Finance Officer, Edward Botchway, “despite intense industry competition, the bank is well placed for the years ahead. In 2016, we will continue to invest in transforming our business to improve customer experience alongside our focus on operational efficiency.
We are determined to work even harder to retain our customer loyalty. Our commitment to improving the customer experience remains ultimately paramount. Ecobank currently operates through a nationwide network of 78 branches and 195 ATMS, and it is connected to the rest of the Ecobank Group in 35 countries across Africa. We ended 2015 with a staff strength of 1,462. Despite intense industry competition, the bank is well positioned for the years ahead.”