Ecobank Malawi profit up 7 percent

Ecobank Malawi Limited profit after tax jumped seven percent to K8.3 billion, to its published results show.

The audited financial statements co-signed by the bank’s board chairperson Symon Msefula and Ecobank Malawi managing director Raymond Fordwuo shows that operating income grew year-on-year by 50 percent to K29.8 billion arising from both funded and non-funded income sources.

Although operating costs increased by 25 percent to K11.3 billion mainly due to an increase in volumes of business during the year, the bank grew its irevenue and operating expenses, the results show.

This led to in an improved cost-to-income ratio of 38 percent down from 45 percent the year before.

“Impairment losses on loans and other assets increased in the year as economic activities slowed down due to the Covid-19 pandemic, which impacted some of our key customers’ ability to service their facilities,” reads the statement.

The bank’s balance sheet increased by 33 percent to K348.9 billion largely anchored by deposits from customers which grew by 47 percent to K206 billion. 

The loan book decreased by nine percent to K34.5 billion due to reduced utilisation of facilities by the bank’s major customers and a conservative approach taken by the bank to minimise the credit risk.

According to the bank, outlook for 2022 remains positive as gross domestic product (GDP) is projected to grow by 4.1 percent on account of economic recovery measures being implemented by the government, increased roll-out of Covid-19 vaccines, and the normalisation of global supply chains.