Ecobank nears GHS 18bn total assets valuation
Ghana’s biggest bank, Ecobank, is inches away from a total assets valuation of GHS 18bn.
A perusal of the bank’s Audited Financial Statement for 2021, reveals that the Pan-African bank ended 2021 with a total assets value of GHS 17.8bn.
An increase of some GHS 2bn when compared to the GHS 15.8bn total assets value recorded for 2020.
Elements accounting for the surge in assets value per the bank’s financial statement can be attributed to increments in loans and advances made to customers, non-pledged trading assets and non-trading assets.
The aforementioned elements for the year under review increased to GHS 5.6bn from GHS 4.9bn, GHS 1.7bn from GHS 497m and GHS 6bn from GHS 5.2bn respectively.
Total liabilities of the bank which was mainly driven by deposits from customers rose to GHS 15.2bn at end-2021 from GHS 13.4bn at end-2020.
Customers deposits accounted for over GHS 12.8bn of the bank’s liabilities.
Ecobank’s operating profit increased from GHS 773m in 2020 to GHS 886m in 2021 posting a 14% increment in profit before tax for the bank.
Accounting for the increase in the bank’s operating profit was a net income of GHS 1.9bn.
The bank for the review period also strengthened its Capital Adequacy Ratio, marginally increasing it from 19.18% in 2020 to 30.24% in 2021.
Regarding its loan asset quality, the bank witnessed a deterioration as its non-performing loans increased to 12% in 2021 from 6.2% in 2020.
Despite the increase, the bank’s NPL is still below the banking industry’s average of 15.2%.
Peruse below details of the Financial Statement:
pdf (9) by Fuaad Dodoo on Scribd
The capital adequacy ratio for 2021 is 20.24% and not 30.24% as reported in this writeup.