Ecobank Ghana, in a resounding financial performance for the third quarter of 2023, unveiled a net profit of GHS 731 million, signifying an impressive increase of GHS 501 million compared to the previous year’s net profit of GHS 230 million.
This remarkable surge in profitability can be attributed to a substantial upswing in operating income, which escalated from GHS 1.8 billion in Q3 2022 to an impressive GHS 2.6 billion in Q3 2023.
The bank’s total assets underwent a notable transformation, soaring to GHS 30.5 billion, a substantial leap from the GHS 24.3 billion recorded in Q3 2022.
This impressive growth in asset value, amounting to GHS 6.2 billion on a year-on-year basis, was underpinned by increments in loans and advances to customers (GHS 9.4 billion), cash and cash equivalents (GHS 6.7 billion), and non-trading assets (GHS 11.4 billion).
On the liability side, the bank witnessed a considerable surge in total liabilities, surging from GHS 21.6 billion in Q3 2022 to GHS 27.1 billion in Q3 2023.
The driving force behind this increment in liabilities was the substantial growth in deposits from bank customers, which reached GHS 23.2 billion by the end of Q3 2023, as opposed to GHS 18 billion in Q3 2022.
In the context of loan asset quality, Ecobank Ghana demonstrated a slight improvement, with its non-performing loan ratio decreasing from 8.81% in Q3 2022 to 8.16% in Q3 2023. This points towards prudent risk management by the bank.
Of particular note is Ecobank Ghana’s Capital Adequacy Ratio (CAR), which stood at 15.98% by the end of Q3 2023, slightly surpassing the industry benchmark of 14%.
The bank’s CAR increased by 2.77% from the previous year’s figure of 13.21%.
In summary, Ecobank Ghana’s Q3 2023 performance showcases a robust financial position, with significant growth in profitability, assets, and liabilities.
The improvement in loan asset quality and a robust Capital Adequacy Ratio underscore the bank’s resilience and prudent management.