Ecobank Ghana posted 7.6% profit growth in the first half of 2022 despite the country’s economic uncertainties.
According to its financial report for the second quarter of 2022, the largest bank in Ghana recorded a profit of 344.9 million yen in June 2022 compared to 320.4 million yen in June 2021.
This was driven by 29% growth in net interest income and 24% growth in net fee and commission income to ¢818.7 million and ¢197 million, respectively, in 2022.
As a result, earnings per share were estimated at 2.14 yen in June 2022, compared to 1.99 yen in June 2021.
The bank also reduced its bad loans to 100.5 million yen in the second quarter of this year, from 110.9 million yen in the same period last year.
Balance sheet remains robust
Total assets for June 2021 were ¢40.4 billion, up from ¢29.9 billion recorded in H1 2021. This was driven by a strong 38% growth in deposits as customer deposits reached ¢16.65 billion in Q2 2022, up from ¢11.97 billion in the same period in 2021.
Regarding the bank’s stability, the bank’s non-performing loans fell from 13.86% in June 2021 to 10.92% in July 2021. This is below the industry average of about 14.41%.
The capital adequacy ratio – a measure of a bank’s available capital relative to its risk-weighted assets – was 16.05%, below the industry average of 19.4%.
The liquidity ratio also fell from 107.25% in June 2021 to 81.9% in June 2021.