Ecobank Ghana posts Ghs 16.2 billion assets value for Q2 2021
The nation’s largest bank, Ecobank Ghana, for the period ended-June 2021 posted a net assets value of Ghs 16.2 billion.
Compared to the bank’s posted assets value of Ghs 13.7 billion for Q2 2020, Ecobank’s assets value grew by Ghs 2.5 billion on a year-on-year (yoy) basis.
A perusal of the bank’s Q2 2021 Unaudited Financial Statement reveals that the bank’s assets growth of 16.59 percent was mainly on the account of a significant rise in the bank’s non-trading assets which grew from Ghs 3.53 billion in Q2 2020 to Ghs 6.17 billion in Q2 2021.
The bank’s liabilities for the review period also grew to Ghs 13.6 billion from Ghs 11.6 billion in Q2 2020, rising by some Ghs 2 billion.
The recorded increment in Ecobank’s liabilities was driven by deposits from customers and other banks.
Deposits from customers and other banks grew from Ghs 10.4 billion to Ghs 11.9 billion and Ghs 779 million to Ghs 922 million in Q2 2020 and Q2 2021 respectively.
In the banking or financial services space, liabilities is often viewed as an ‘asset’ and not debt due to the fact that a major component of a bank’s liabilities are deposits made by customers which the bank can in turn use for credit creation by lending the monies out to other customers as loans.
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With regards to profit, Ecobank Ghana for the second quarter of this year posted a profit-after-tax of Ghs 320 million.
An increase of Ghs 71 million yoy as against the Ghs 249 million profit recorded same period last year.
The rise in the bank’s profit was on the account of an increase in the bank’s operating profit from Ghs 351 million to Ghs 474 million.
The recorded profit for Q2 2021 translates into a dividend of Ghs 1.99 pesewas for shareholders, an increase of 44 pesewas from the Ghs 1.55 dividend paid to shareholders in Q2 2020.
Ecobank for the period under review maintained its Capital Adequacy Ratio (CAR) of 18 percent which is fairly above the Bank of Ghana’s 13 percent CAR requirement.
Loan asset quality of Ecobank for the review period saw an improvement reducing by 1.54 percentage points yoy.
Non-Performing Loans (NPLs) of Ecobank at the end-June 2021, stood at 13.86 percent from 15.40 percent in Q2 2020.
An improvement in the bank’s NPLs indicates that there is an increased level of loan repayments by borrowers.
Peruse details of financial statement below:
Ecobank Ghana by Fuaad Dodoo on Scribd
