Ecobank Ghana has consolidated its position as the biggest bank in the country in terms of total assets, revenue, deposits, loans and shareholder funds.
For a bank that began 25 years ago, Ecobank’s 2014 financial results show a remarkable growth in the bank’s total assets by 23 per cent to close the year with GH¢5,767,608 billion to beat Ghana Commercial Bank (GCB), which until 2012 was the country’s biggest bank and posted GH¢4,259,102 billion in 2014.
The third biggest, Standard Chartered Bank (SCB), also closed the year with GH¢3,506,297 billion, beating Barclays Bank Ghana (BBG), which posted GH¢2,981,302 billion to fourth place in the banking sector.
Financial results released by banks in the country show that the Pan African Bank is currently on top with highest profit after tax for 2014.
Robust risk management strategy
The Chief Finance Officer of Ecobank Ghana, Mr Edward Nartey, attributes Ecobank’s low non-performing loan (NPLs) ratio to its robust risk management framework which has ensured a healthy loan portfolio.
A look at the results shows that the drivers of these profits were strong growth in most of the banks’ interest and fee and commission earning businesses.
Ecobank’s profit before tax for last year hit GH¢ 446.3 million, from GH¢267.35 million. This actually represents almost 70 per cent jump in profit before tax.
The bank that comes close to Ecobank’s turnover is GCB Bank, which actually recorded a profit before tax of GH¢ 394.9 million after it saw a 25 per cent leap in its profits.
Standard Chartered Bank, which is also among the first-tier banks in the country, posted a profit before tax of GH¢274.8 million, a one per cent increase, while Stanbic Bank ‘s earnings hit GH¢217.5 million after a 41 per cent growth.
Barclays Bank posted GH¢270.52 million profit for 2014, while Access Bank ended 2014 with a profit of GH¢123 million.
Compared to the other banks, the Pan African Bank makes more revenue, and officials of the bank attribute this to its efficient staff and strong management team under the able leadership of the Managing Director of the bank, Mr Samuel Ashitey Adjei, who took over the leadership mantle in January 2006.
Ecobank Ghana’s ascent to the top of the banking industry has been rather rapid. It is little wonder that Ghana’s Stock Market is responding positively to the bank’s 2014 performance.
The 2014 financial year saw Ecobank Ghana emphasising its market dominance as it led the banking industry with the highest revenue levels of GH¢857.7 from GH¢ 589.8 in 2013.
2nd best taxpayer
With increase in profits comes increase in taxes and Ecobank duly fulfilled its tax obligations to the revenue authorities earning the Ghana Revenue Authority’s “2nd best taxpayer”- large taxpayer office award for 2014.
The award was in recognition of compliance in filing and payment of taxes in 2014.
The bank’s performance over the years have not gone unnoticed as the bank’s credit rating has been affirmed by the global credit rating company at A1+ (GH) (short term) and AA- (GH) (Long term).
The accorded ratings reflect Ecobank Ghana Limited’s established domestic franchise value, resilient performance, risk appropriate capitalisation and adequate loan loss reserves.
These are, however, partially offset by shifts in both global and domestic risk dynamics, which continue to negatively impact the local economy.