Ecobank Ghana holds 16th AGM emerging as Ghana’s most profitable, innovative bank for 2020

Ecobank Ghana on June 4, 2021, held its 16th Annual General Meeting (AGM). Continuing with its success trajectory, the bank in 2020 posted another year of sterling financial performance, in addition to a significantly enhanced product mix, emerging as Ghana’s most profitable and innovative bank for the year 2020. The AGM was held virtually in line with COVID-19 protocols.

Leveraging technology, the bank highlighted strong growth in revenues and profits, recording a total revenue of GHS1.8 billion and a profit before tax of GHS 782 million. This indicated a growth of 17% and 22% respectively over the prior-year figures.

Ecobank’s customer deposits were also the highest by any bank in the industry and grew by 21% from GHs9.7 billion to GHs11.8 billion against the prior year. Increases in operating expenses were efficiently controlled within the inflationary levels as the bank posted a cost-to-income ratio of 47.9% which compared favourably with the industry ratios.

The bank’s return on average assets and equity stood at 3.8% and 26.0% respectively, demonstrating improved shareholder value creation. Ecobank, in addition, ended the year with an outstanding market capitalisation of Ghs2.3 billion and a capital adequacy ratio of 19.57%, over and above the regulatory requirement of 13%.

Given the bank’s stellar performance, the board proposed a dividend payout of 55 pesewas per share, an increase of 83% over last year’s payout of 30 pesewas per share; this amount was unanimously approved by shareholders.

This extraordinary performance was against the backdrop of a rather difficult year brought on by the Coronavirus pandemic that imposed lockdowns, border restrictions, disruptions in supply chains and a slowdown in the demand for a number of products and services.

However, the bank’s robust digital infrastructure kept the business afloat and also accommodated the remote working requirements of a large number of the Bank’s employees. This was achieved through consistent investment in technology and innovation over the years.

Speaking to shareholders at the AGM, Mr. Terence Darko, Board Chairman of Ecobank said the benefits of the Central Bank’s clean-up activities had begun to positively impact banking.

This, he said, was evident in the presence of a resilient banking industry, which has to date managed to withstand the adverse effects of the pandemic, showing moderate financial sector performance, as most banks remain liquid, profitable and well capitalised.

Touching on Corporate Social Responsibility (CSR), Mr. Darko indicated that Ecobank was committed to driving positive change in the communities within which they operate focusing on health, education, financial inclusion and the environment.

He also mentioned a number of CSR initiatives that Ecobank had embarked on in support of government’s efforts including supporting the Ghana COVID-19 private sector Fund with GHs1.3 Million; GHs750,000 in cash towards the construction of a 100-bed infectious disease center in Accra, donation of personal protective equipment (PPEs) worth GHs550,000, and a donation of 10,000 pieces of COVID-19 test kits to the Noguchi Memorial Institute for Medical Research.

Touching on partnerships and collaborations in the fight against the pandemic, he further indicated that Ecobank had collaborated with the Multimedia Group to solicit additional funds for the private sector fund intended for the 100 – bed infectious disease centre, which saw the Multimedia Group contributing GHs100,000 worth of airtime for the charitable campaign.

Additionally, the bank embarked on a series of webinars together with the African Centre for Disease Control and Prevention (Africa CDC), to help improve awareness amongst the public on COVID–19, focusing on key safety and preventive measures.

These activities were complemented with a year-long campaign on radio, print and social media platforms by the bank. Ecobank’s COVID-19 related donations cumulatively amounted to Ghs1.75 million.

This excluded interventions such as the waiving off and in some instances, a reduction in bank charges on its digital channels during the pandemic. The bank also granted payment holidays and moratoriums when needed to selected businesses adversely impacted by the pandemic.

Within the year, the bank won a number of awards including the prestigious CIMG 2020 Hall of Fame Best Bank, Global Banking & Finance Award - Best Investment Bank in Ghana 2020, Sustainability and Social Investment Award for the Best Company in Environmental Sustainable Project in 2020, Sustainability and Social Investment Award for the Best Company in Speciality Healthcare Support Project 2020, National Student Award – Student Bank of the Year 2020, Ghana Business Awards - Company of the Year, and the Ghana Business Awards Excellence in Innovation and Technology 2020, amongst many other laurels. Ecobank dedicates these numerous awards to our loyal customers and stakeholders.

On his part, the Managing Director of the bank, Mr. Daniel Sackey said that Ecobank had managed to drive growth within a challenging business environment. He also remarked on the unprecedented lockdown restrictions imposed by governments during the course of the year due to COVID-19, and how the bank had quickly adapted by finding alternative ways of reaching out to clients, leveraging on technology.

The bank’s existing systems are resilient, reflecting the benefits of its consistent investment in technology over the years. In 2020, indeed over 60% percent of the Bank’s workforce successfully worked remotely at a point in time, this was largely achieved because of the Bank’s robust technology.

Touching on the bank’s first consumer digital lending proposition, Xpress Loans, launched in June 2019, Mr Sackey, informed the media that the bank had since advanced micro-loans to 2,300,000 customers as of May 2021. Xpress Loans, he said, is transforming lives, with 36% of customers using the loan for businesses and 74% of the beneficiaries below the age of 34.

Indeed, Xpress Loan is now a critical tool for expanding financing to our MSMEs and is a key driver of job creation, supporting 54% of its beneficiaries earning monthly incomes of less than US$150. He appealed to the media as key partners to support the bank’s advocacy efforts to drive repayments and ensure sustainable product delivery.

For the bank’s business clients, he indicated that Ecobank had rolled out over 4,200 Ecobank pay terminals across the country to facilitate collections for various merchants. The bank has, in addition, deployed a number of solutions for this segment including a simplified customer self-onboarding digital platform, Ecobank Omnilite as well as the bank’s award-winning Ecobank Omniplus solution for its Corporate customers.

The Ecobank business card, Ecobank’s recently launched flagship product is a contactless prepaid card that allows corporate cardholders to access funds in a safe, secure and convenient manner, anywhere and anytime across the globe. Issued instantly, these cards may be personalized with the company’s name.

They are reloadable and may be issued to anyone including non-Ecobank account holders, providing a unique audit trail on the spend of users thus helping to increase control and business transparency. Like most of the Bank’s digital products, the Ecobank Business Card allows for self-service, enabling customers to fund their cards without being physically present in any of our outlets, using our enhanced Ecobank Mobile application.

He further threw light on the support that the bank is providing to both customers and the communities within which the bank operates, particularly during the COVID-19 pandemic to safeguard the health and safety of all its stakeholders including; customers, employees and vendors.

With respect to the customers, some of the measures that he touched on included digitally expanding access to markets, capacity building through training and mentorship programs as well as the provision of financial advisory services.

He also indicated that the early months of 2021 had seen the gradual easing of COVID-19 restrictions, as well as a successful rollout of a pilot vaccination program in Ghana, mainly for frontline staff, persons above 60 years and those with underlying medical conditions, he, in addition, affirmed the bank’s determination to work assiduously towards leading the fight against the pandemic and continue to remain resolute in its support to customers, staff and stakeholders during and after COVID-19 to ensure full financial recovery.

He concluded by thanking shareholders, customers and regulators for the confidence they continue to repose in the management of the Bank as well as its employees for their hard work and commitment to customers.