Ecobank Malawi H1 profit before tax hits K11.6bn

Ecobank Malawi profit before tax jumped to K11.6 billion in the half-year ended June 30 2022, representing a 95 percent growth over last year’s results.

Summary of audited financial results jointly signed by the bank’s board chairperson Symon Msefula and managing director Raymond Fordwuo show that operating income grew year-on-year by 53 percent to K19.2 billion mainly due to growth in interest-earning assets.

Revenue growth in the review period outstripped operating expenses growth, resulting in the bank recording a lower cost-to-income ratio of 33 percent from 41 percent during the same period last year.

Reads the statement in part: “Consequently, profit before tax grew to K11.6 billion year-on-year, representing 95 percent growth while profit after-tax increased by 87 percent to K8 billion.

“The bank’s total assets increased year-on-year to K470 billion mainly anchored by deposits from customers, which grew by 79 percent to K259 billion.”

The subdued utilisation of the bank’s facilities due to global supply chain disruptions cause by the current geo-political environment affected the growth of the loan book, which grew by five percent to K37 billion.

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

The bank sees the operating environment in the second half remaining unstable as the first half of the year given rising commodity prices, intermittent electricity power supply and uncertainty caused by Russian-Ukraine conflict, which pose threats to projected gross domestic product growth for the year. But the Ecobank Malawi said its remains focused on serving the needs of its customers, shareholders, staff and other stakeholders.

It said in the second half and beyond, the bank will accelerate the sale of its digital solutions targeting every Malawian.

“The bank will provide more convenience to its customers by improving on existing product lines and introducing new ones,” said the bank.

Ecobank Malawi Limited is part of the Ecobank Transnational Incorporated, the parent company of the Ecobank Group.

The group employs about 14 000 people and serves about 29 million customers in the consumer, commercial and corporate banking sectors in 33 African countries.