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Ecobank Malawi posts K4 billion profit

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By Martin Phiri:

Ecobank Malawi Limited has posted a K4 billion profit after tax for the half year ended June 2020.

Published financial statement co-signed by the bank Board Chairman Leonard Chikadya and Managing Director Charles Asiedu show that the post-tax profit surged by eight percent when compared to a similar period last year.

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The bank registered 19 percent growth in total assets year-on-year, to K278 billion driven principally by a 13 percent increase in deposits from customers and funding from other banks which grew by 54 percent to K124 billion.

In the statement, the bank says its loan book, however, decreased by eight percent to K35 billion due to lower utilisation of facilities by major customers in the wake of slowed business occasioned by political uncertainty and the advent of Covid-19 pandemic in the earlier part of the year.

“The financial performance underscores the resilience of the bank arising from our leadership position in trade finance, the digitisation of our products and services and better efficiency in delivering our customer-centric services,” reads the statement.

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Benefitting from continued strategic cost management and reduced business, operating costs were flat year-on-year at K4.2 billion resulting in cost to income ratio of 44 percent.

Impairment loss charges reduced year-on-year by 96 percent to K54 million arising from improved risk management practices.

Going forward, the banks says outlook for the second half of the year to be somewhat challenging due to Covid-19.

“We are cautiously optimistic about the future and we will continue to make the appropriate investments to bring more value to our customers and other stakeholders,” says the bank in the statement.

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