Business

Ecobank profit up 42 percent

Profit—after—tax for Ecobank Malawi went up by 42 percent in the year ended December 31 2019 to K7.1 billion from K5 billion in the preceding year.

In a financial statement published Monday, Ecobank says it continued its growth trajectory in the year under review amid tough economic condition arising from effects of the May 21 2019 Tripartite Elections.

The bank’s total assets remained stable at K262 billion, principally driven by funding from borrowed funds which grew by 37 percent to K82 billion, according to the statement.

Ecobank loan book increased to K43 billion, representing growth of 13 percent which underlines the bank’s commitment to support growth of the economy.

“The continued growth 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 co-signed by Ecobank Chairperson, Leonnard Chikadya and Managing Director, Charles Asiedu.

The report further shows that Ecobank has registered growth in its profits, income, assets, loans, deposits and equity in the past 5 years.

For example in the five -year period, the bank’s profit before tax have grown from K3.9 billion in 2015 to K9.5 billion in 2019 while assets grew from K97.6 billion in 2015 to K262.1 billion last year.

Loans and advances to customers also grew from K39.3 billion in 2015 to K42.6 billion last year despite a registered drastic fall to K32.7 billion in 2017.

However, the bank indicates that the 2020 outlook is murky.

“The annulation of the 2019 presidential election and the ushering in of a new one reintroduces a new wave of uncertainties on the market. Also the global impact of Covid-19 poses serious economic challenges around the world, including Malawi.

“In 2020 and beyond, we will accelerate the sale of our world class digital solutions targeting every Malawian, we will provide more convenience to our customers by improving product lines and introducing new ones,” the statement reads.

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