Audio By Carbonatix
Ecobank Ghana says, meeting the minimum capital requirements is not the end of capital growth for the bank as it continues to build the necessary capabilities by further strengthening its balance sheet to remain a formidable financial services provider in the country.
According to the bank, despite a substantial increase in profit for the year 2018, it has decided to defer dividend payment in favour of growing its Income Surplus Account.
Ecobank grew its profit before tax by 41% to ¢506.251 million at the close of 2018.
Providing clarifications on the decision not to pay dividends this year, the Managing Director, Dan Sackey said the bank has taken a prudent measure to ensure that it rebuilds its income surplus account, having previously moved ¢190 million from its reserves to shore up stated capital last year.
This explanation was given in response to a concern raised by a shareholder at the bank's Annual General Meeting, held last Friday in Accra.
“Meeting the ¢400 million minimum capital requirements is not the end of the game but it is key that we maintain the appropriate capital levels to support the Business.
“If you look at Ecobank's position on the market and revenue generation capacity, it's important that we maintain a strong balance sheet always,” he said.
“We will continue to build on those buffers to boost the operations and this requires stronger financial muscles, which we continue to build," concluded Mr Sackey.
The bank's financial statements for the 2018 financial year shows sterling performances against the backdrop of a turbulent banking environment last year.
Ecobank recorded a 16% growth on customer deposits to close the year at ¢7.6billion. This lead to a 55% rise in loans and advances of Ghs4.1billion.
Total assets and shareholders equity also rose by 15% to ¢10.45 billion and 28% to ¢1.3 billion respectively.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Mobile Money Fintech LTD, UMB train hairdressers and beauticians
48 minutes -
Asylum votes show people want help, says Kemi Badenoch
2 hours -
Badenoch welcomes expanded grooming gangs inquiry
2 hours -
GACL MD sues Samuel Buabeng over alleged Facebook defamation
2 hours -
Christa Pike in critical condition after surviving two lethal injections, lawyer says
2 hours -
Kemi Badenoch backs face covering ban at protest
2 hours -
Man City not ‘above the rules’, says No 10 after backlash to Burnham remarks
2 hours -
Real Madrid submit ‘substantial’ dossier in Barca payments case
3 hours -
Messi completes purchase of second Spanish club
3 hours -
Government must engage horticulturists on tomato crisis – GhIH
3 hours -
King Promise’s ‘Can’t Tame Us’ becomes official Chelsea anthem
3 hours -
Afenyo-Markin demands Baffour Awuah’s release from EOCO’s custody, end to alleged political intimidation
3 hours -
Rapper Rick Ross arrested on domestic violence charges
3 hours -
Minority demands security review of Ghana-Colombia visa waiver and port deals
3 hours -
Pursue drug kingpins, not persecute political opponents – Afenyo-Markin tells EOCO
3 hours