Pan African bank, Ecobank Ghana recorded 27.2% year-on-year growth in profit to ¢464.3 million, as it consolidated its gains as the number one bank in the country.

According to its 3rd Quarter Financial Statement, non-funded income contributed significantly to its ‘bottom line’ as growth was up 31.19% year-on-year.

As a result, Return-on-Equity was estimated at 26.37%, as shareholders will be smiling home with ¢1.92 earnings per share. This is against ¢1.58 registered in September 2020.

Return-on-Assets was also estimated at 3.96%, a little lower than the 4.2% recorded in June 2021.

From the financial statement, Ecobank Ghana is one of the most efficient banks in the country with Cost-to-Income ratio at 43.3% in September 2021.

The bank was also able to bring down its bad loans down to ¢147.3 million in the first nine months of this year, as against ¢182.8 million recorded the previous year.

However, other operating expense went up significantly to ¢315.4 million in September 2021, as against ¢269.6 million in September 2020.

The balance sheet size went above ¢31 billion, higher than the about ¢30 billion, recorded in the first-half of 2021. This is due to a strong growth in deposits by 18.60% as customer deposits hit ¢12.5 billion in the 3rd quarter of 2021, as against ¢11.9 billion in half-year 2021.

In terms of stability of the bank, Non-Performing Loans reduced marginally to 13.59% in September 2021, from 13.86% recorded in June 2021. This is however lower than the industry average of about 17.3%.

Capital Adequacy Ratio-a measurement of a bank’s available capital to its Risk Weighted Assets, was way above the industry average at 18.12% in September 2021, signifying a stronger bank.

Liquidity ratio however declined to 78.9% in September 2021, from 107.25% in June 2021.

Key Ratios

Cost to income ratio	43.39%
Return on Average Assets	3.96%
Return on Average Equity	26.37%
Non Funded Income to Total Income	31.19%

Financial Highlights June 2021 – June 2020

	2021	2020
Profit before Tax	702.90	546.64m	27.22%
Total Assets	16.7bn	14.5bn	15.47%
Deposits	12.55bn	10.68bn	18.60%