Ecobank Malawi posts K11.6 billion profit before tax in half-year 2021

* The sustained growth underscores Ecobank’s resilience arising from its leadership position in trade finance

* As well as the digitization of products and services, operational efficiency, and excellence in delivery of customer-centric services

* Ecobank Malawi Ltd is part of the Ecobank Transnational Incorporated, the parent company of the Ecobank Group

Victor Singano Jnr, Correspondent

One of the country’s leading banks, Ecobank Malawi Limited has posted its 2022 half year summary of unaudited results, recording a profit before tax of K11.6 billion, which represents a 95% growth in comparison to H1 2021 unaudited results.

The results were co-signed by the banks Board chairperson, Symon Msefula and Managing Director, Dr. Raymond Fordwuo, which were released on Tuesday, August 23), which indicate operating income grew year-on-year by 53% to K19.2 billion mainly due to significant growth in interest-earning assets.

Revenue growth outstripped operating expenses growth as a result the bank recorded a lower cost to income ratio of 33% from 41% in similar period in the previous year.

Consequently, profit before tax grew to K11.6 billion year-on-year representing 95% growth while profit after tax increased by 87% to K8 billion.

The banks total assets increased year-on-year to K470 billion mainly anchored by deposits from customers which grew by 79% to K259 billion.

The loan book grew slightly by 5% at K37 billion due to subdued utilization of facilities by its major customers triggered by global supply chain disruptions caused by the current geo-political environment.

The bank says the sustained growth underscores its resilience “arising from its leadership position in trade finance, the digitization of products and services, operational efficiency, and excellence in delivery of customer-centric services”.

“The operating environment in the second half of the year is projected to remain unstable as the first half, taking into consideration of “rising commodity prices, intermittent electricity power supply and uncertainty caused by Russian-Ukraine conflict, which pose threats to projected GDP growth for the year”.

The bank, however, says it remains focused on serving the needs of its customers, shareholders, staff, and all other stakeholders, saying: “In the second half of the year and beyond, the bank will accelerate the sale of its world class digital solutions targeting every Malawian.

“The Bank will provide more convenience to its customers by improving on existing product lines and introducing new ones. It will also continue to play a leadership role in the key sectors of the economy and the African continent by leveraging on its partnerships around the world.

“Ecobank is cautiously optimistic about the future and will continue to make the appropriate investments to bring more value to its customers and other stakeholders.

Ecobank Malawi Ltd is part of the Ecobank Transnational Incorporated, the parent company of the Ecobank Group, which is the leading independent pan-African banking group, which employs over 14,000 people and serves about 29 million customers in the consumer, commercial and corporate banking sectors across the 33 African countries.

The Group has a banking license in France and representative offices in Addis Ababa, Ethiopia; Johannesburg, South Africa; Beijing, China; London, the UK and Dubai, the United Arab Emirates.

It offers a full suite of banking products, services and solutions including bank and deposit accounts, loans, cash management, advisory, trade, securities, wealth, and asset management.

Ecobank Transnational Incorporated is listed on the Nigerian Stock Exchanges in Lagos, the Ghana Stock Exchange in Accra, and the Bourse Régionale des Valeurs Mobilières in Abidjan.