Shareholders of Ecobank will be smiling to the bank this year following an increase in their dividends. The board of the bank on Friday declared a 21% increase in dividends at its Annual General Meeting (AGM). This is from 0.24 to 0.29 pesewes.
Ecobank Ghana recorded an impressive 76% year on year growth in profits before tax from GHC 106 million to GHC 186 million last year, and also saw a 37% return on equity for the same year.
The results recorded indicate a strong performance in all the Bank’s income lines as it delivered strong growth in net interest income and fee-based income. Significantly, non-interest income contributed 34% to total income whiles interest income constituted 64%.
Speaking at the Bank’s 7th AGM, Chairman of the Ecobank Board, Lionel Van Lare Dosoo said the banks impressive results reflect a strong performance in all income lines.
“The Bank’s gross loan book grew by 69% from GHC0.86 billion to GHC1.46 billion while deposits also grew by 53% to GHC2.46 billion within the year. The Bank’s total assets stood at GHC3.43 billion as at the end of year 2012, a growth of 61% from prior year numbers. Stated capital also grew by 226% whilst total equity grew by 74%.”
According to Mr. Dosoo “the year 2012 also saw a successful integration of the human resource base, technological platforms and operations of Ecobank and TTB in a seamless manner with very minimal interruptions and inconveniences to customers and employees. The most remarkable thing about this integration was the total absence of staff redundancies and/or redeployment of any kind.”
“The bank was able to effectively integrate the cultures and values of the two banks[Ecobank and TTB] successfully, the results of which has clearly reflected in the bank’s financial performance for 2012.”
The bank also recorded an increase in the provision for credit from a little over 6 million cedis to over 25 million cedis last year as a result of growth in the bank's SME portfolio.
Capital strength with capital adequacy at year end was at 14.78% up from 13.57%in 2011 and above the central bank's threshold requirement of 10%.
Managing Director of Ecobank Ghana, Samuel Ashitey Adjei also added that the bank is positioned with the strongest financial backbone saying “Ecobank is poised to provide various financial solutions to operators in all key segments of the Ghanaian economy.”
“With such strong performance in 2012, backed by the commitment, dedication, passion and zeal of its employees, Ecobank is also in readiness to maintain its leadership position in the industry.”
Ecobank Ghana currently has a total branch network of 78 as at the end of 2012. The bank has presence in eight out of the country's ten regions.
By : Evans Effah/Citifmonline.com/Ghana