Categories: Stories

Ecobank profit up 50 percent in six months

Ecobank Zimbabwe posted a 52 percent growth in after tax profit to $3.4 million for the six months to June, 30, from $1.6 million in the comparable period last year.

Net interest income was 15 percent up to $7.5 million from $6.4 million last year.

“This was a result of combined effect of improved quality in earning assets and reduced cost of funds which helped offset the impact of falling lending margins due to regulatory and markets forces,” said managing director Daniel Sackey in a statement accompanying financial results.

Total deposits grew by 13 percent to $191 million in the six months.

Sackey has since been moved to Ghana to head Ecobank’s West African Anglophone operations.

The bank’s capital stood at $48.4 million, a growth of 17 percent year on year.

Operating costs fell three percent to $7.4 million due to cost containment initiatives.

Loans and advances were 22 percent lower at $136 million from 165 million as at 31 December 2015.

Assets were 12 percent up to $262.7 million from $234 million in December 2015, driven by growth in liquid assets on the back of successful deposit mobilisation initiatives.- The Source

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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