Ecobank Posts K11.6 billion Profit Before Tax in H1 2022
Commercial banks continue posting huge profits with the latest being Ecobank Malawi which has posted K11.6 billion profits before tax in the first half of 2022 amid economic hardships, persistent unreliable electricity and continued Russian-Ukrainian war.
In a statement published on Tuesday, cosigned by the bank’s Board Chairman Mr. Symon Msefula and Managing Director, Dr. Raymond Fordwuo, says the growth of the bank’s total assets is due to increased deposits from customers by 79 percent to K259 billion.
‘’The Bank's total assets increased year-on-year to MK470 billion mainly anchored by deposits from customers which grew by 79% to MK259 billion. The loan book grew slightly by 5% at MK37 billion due to subdued utilization of facilities by its major customers triggered by global supply chain disruptions caused by the current geo-political environment,’’ reads part of the statement.
The statement further says, the bank realized the profits due to the sustained digitization of products and services, operational efficiency, and excellence in delivery of customer-centric services.
‘’Consequently, Profit before tax grew to MK11.6 billion year-on-year representing 95% growth while profit after tax increased by 87% to MK8 billion,’’ the statement added.
However, the operating environment in the second half of the year remains unbalanced as prices of goods continue rising.
The statement, “the operating environment in the second half of the year is projected to remain unstable as the first half of the year given rising commodity prices, intermittent electricity power supply and uncertainty caused by Russian-Ukraine conflict which pose threats to projected GDP growth for the year.’’
Ecobank says it is hopeful that appropriate investments in accelerating sales in its digital platforms are solutions to continued skyrocketing prices of commodities and political wrangles involving Russia and Ukraine.
(by Mathias Mkupasha)