Ecobank loan asset quality worsens as non-performing loans triple to 24.5% in Q1 2024
Loan asset quality of Ecobank Ghana Plc worsened on a year-on-year basis as the Bank witnessed a surge in its non-performing loans (NPL) ratio to 24.57% in the first quarter of 2024 from 8.19% in the first quarter of 2023.
The surge indicates a tripling of the bank’s non-performing loans within the review period.
The bank would have to implement robust loan recovery strategies to be able to reduce its non-performing loans and improve its loan book.
Within the review period, assets value of Ecobank Ghana grew significantly to GHS 35.3bn at end-Q1 2024 from the recorded GHS 27.9bn at end-Q1 2023.
Growth in assets value was occasioned by increments in the bank’s cash and balances (GHS 10.7bn) and non-trading assets (GHS 11.8bn).
Loans and advances to customers, a key factor of the bank’s assets value, however, declined to GHS 9.1bn in Q1 2024.
Liabilities of the bank within the review period rose to GHS 31.4bn from GHS 25.1bn driven primarily by increased deposits from customers.
Deposits from customers grew to GHS 27bn from GHS 22.8bn indicating increased customer confidence in the bank.
With regards to profit realised within the review period, Ecobank Ghana grew its net profit to GHS 312m in Q1 2024 from the loss of GHS 13.2m recorded in Q1 2023.
Based on the net profit posted for Q1 2024, earnings per share for shareholders amount to GHS 3.88, an improvement from the GHS 0.16 earnings per share loss in Q1 2023.
