pdf available here The Ecobank Group has reported unaudited results for the first half of the year (H1 2016) with profit before tax of $204 million. The bank raked in revenue of $1billion within the period.

The Group’s financial statements for the first six months of the year which ended on 30 June 2016, have been reviewed by Grant Thornton, Cote d’Ivoire (joint external auditor), as required by the BRVM for half year results.

Financial highlights:

o Revenue of $1.0 billion, down 5% year-on-year (flat at $1.1 billion in constant dollars)

o Cost-to-income ratio of 64.3% (62.5% in June 2015)

o Pre-impairment income of $365 million, down 9% year-on-year, ($383 million in constant dollars)

o Profit before tax of $204 million, down 35% year-on-year, ($216 million in constant dollars)

o Attributable profit to ETI shareholders of $127 million compared to $217 million in June 2015

o Diluted earnings per share of 0.51 US cents compared to 0.92 US cents in June 2015

o Return on average total assets (ROAA) of 1.4% and return on average equity (ROAE) of 13.1%

o Net customer loans of $10.2 billion, down $1.6 billion, or 14%, but up 1% in constant dollars

o Customer deposits of $14.3 billion, down $1.9 billion, or 12%, but up 3% in constant dollars

o Basel I Tier 1 capital ratio of 20.8% and total capital adequacy ratio (CAR) of 23.9%

Group CEO Ade Ayeyemi said: “Our results for the first half of the year were modest, achieved in a period of economic slowdown and market uncertainty. However, our diversified business model, a source of competitive strength, and strategy positively contributed to the underlying results.”

“Revenue was flat in constant dollars from the prior year period, while earnings decreased due to higher impairments. Our efficiency ratio of 64.3% was within target, despite the revenue headwinds, supported by actions we continue to take to reduce costs, which will yield future benefits. Though the economic environment broadly continues to be challenging, we are seeing progress in our initiatives to improve credit quality,” Mr Ayeyemi continued, adding: “Our balance sheet growth was significantly impacted by the depreciation of the Naira and our cautious stance on lending in the current environment. Our capital adequacy ratio at period end was 23.9% under Basel 1”.

Mr Ayeyemi concluded: “We see opportunities to serve our clients in these challenging period and applaud Ecobankers, our most valuable resource, for continuing to deepen relationships with our clients.”

Source: Ghana/ClassFMonline.com/91.3FM

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