The Ecobank Group increased its profit before tax by 13 percent to $540 million in the 2022 financial year, according to its audited results for the year ending 31 December 2022, released on Thursday. The bank attributed this growth to the benefits of its diversified business model. Net revenues for the period reached $1.9 billion, and the institution proposed a final dividend of $28 million, or 0.11 US cents per share, subject to shareholder approval at the next AGM.
Profit before tax was driven by strong performance in Commercial Banking, which rose 100 percent to $134 million, and Consumer Banking, which grew 50 percent to $130 million. These gains were partially offset by a 17 percent decline in Corporate and Investment Banking profit before tax, falling to $333 million, mainly due to impairment charges linked to the Government of Ghana’s debt‑restructuring exercise.
Chief Executive Officer Jeremy Awori, who assumed the Group CEO role earlier this month, said the results reflected the resilience of Ecobank’s diversified model, growth momentum and efficiency despite a challenging macro‑economic environment and the difficulties posed by Ghana’s debt restructuring. “We grew profit before tax by 13 percent to $540 million, translating into earnings‑per‑share growth of 10 percent and delivering a record return on shareholders’ equity of 21.1 percent,” Awori stated. He highlighted a cost‑to‑income ratio of 56.4 percent, a reduction in non‑performing loans to 5.2 percent, and a total capital adequacy ratio of 14.4 percent, well above the regulatory minimum.
Impairment charges on loans and advances fell to $270 million in 2022 from $374 million in 2021, while net impairment charges dropped to $10 million from $170 million the previous year, indicating a decrease in non‑performing loans. The bank also reported a $34 million net monetary loss due to hyperinflation in Zimbabwe and South Sudan. Payment revenues increased by $25 million (12 percent) to $234 million, representing 13 percent of group net revenues, driven by merchant acquiring, cards, and wholesale payments. Total assets rose by $1.4 billion to $29.0 billion, primarily from growth in loans and investment securities supported by rising customer deposits.
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