Despite a challenging operating environment in 2017, Ecobank Ghana Limited recorded a total revenue of GH¢1.1 billion and grew its customer deposits by 21%, higher than the average industry growth rate of 12.6%, a reflection of the bank’s improved value proposition and customer care.
These positive developments, the bank proudly maintains, also reflected in “the 26% growth in net fee and commissions income to GH¢199 million in 2017”.
Managing Director (MD) of Ecobank Ghana, Mr Daniel Sackey said, “This is a testament of the confidence reposed in the Ecobank brand by our customers, and the success of our digital and cash management value proposition.”
The bank, he said, remained confident that further gains could be made by way of increased efficiencies as the management team continued to work hard to diversify and improve its revenue streams.
Mr Sackey, who was addressing shareholders at the bank’s Annual General Meeting (AGM) last Friday in Accra, assured them of brighter prospects this year and beyond.
“We expect a boost in business confidence as the declining interest rate regime translates into lower cost of production and increased productivity for our clients; the reduced cost of doing business should in turn lead to enhanced business opportunities for both our clients and the bank,” management said.
It attributed the 7% drop in revenue against that of 2016 to the declining interest rate environment, “driven by the successful implementation of the TSA, which impacted our net interest income”.
Board Chairman of Ecobank Ghana, Mr Terence Darko explained further that a drop in the benchmark 91-day Treasury bill by 330 basis points to 13.01% at the end of 2017, coupled with the central bank’s 550 basis points reduction in its policy rate, underpinned the decline in revenue.
Energy sector debt bane of banking sector’s woes
The delayed resolution of the energy sector debt, coupled with a slowdown in economic activities during the first half of the year under review, created asset quality challenges for the banking sector.
Ecobank Ghana responded to the developments by tightening credit underwriting standards and taking a higher than expected charge of GH¢174 million for loan impairments.
Ecobank mobile app pools over 800,000 subscribers
Introduced in November 2016, the mobile application (app) has received enormous patronage, pooling 895,000 customers till date.
The MD of the bank said the high patronage of services on the app had encouraged the bank to provide a new range of digital offerings to augment the existing products.
“Not relenting on our oars, we have subsequently upgraded our mobile app with additional functionalities, including cardless withdrawals from our ATMs, acquisition of other bank cards, withdrawal from agents and person-to-person mobile transfers from VISA cards,” Mr Sackey explained
The bank’s flagship corporate payment platform, OMNI, had been well received by its corporate clients, and currently boasts of an estimated annual transaction value of GH¢12.3 billion in 2017.
Bonus shares for shareholders
The bank announced the issuing of bonus shares of one share for every 10 shares held. This is to make up for the non-payment of dividends to shareholders as the bank is feverishly raising capital to meet the GH¢400 million new minimum capital requirement set by the regulator.