Ecobank Ghana’s 3Q 2021

Ecobank Ghana PLC

Consolidated Financial Statements (unaudited) for the period ended 30th September 2021

	Cost to Income	43.39%
Key	Return on Average Assets	3.96%
Return on Average Equity	26.37%
Ratios
Non Funded Income to Total Income	31.19%
	September 2020 - September 2021	Growth
Financial	Profit Before Tax	27.22%
Total Assets	15.47%
Highlights
Deposits	18.60%
	Revenue	12.39%

Statements of comprehensive income

(All amounts are in thousands of Ghana cedis unless otherwise stated)

	Group		Bank
	Sep - 21	Sep - 20	Sep - 21		Sep - 20
Interest income	1,187,400	1,163,643	1,152,419		1,111,673
Interest expense	(144,828)	(169,062)	(146,320)		(149,415)
Net interest income	1,042,572	994,581	1,006,099		962,258
Fees and commission income	287,320	178,114	278,500		142,410
Fees and commission expense	(17,157)	(7,037)	(17,157)		(7,037)
Net fee and commission income	270,163	171,077	261,343		135,373
Net trading income	174,563	129,290	174,492		127,376
Other operating income	27,519	48,926	25,790		48,910
Dividend Income	-	3,568	-		3,568
Gain on sale of equipment	236	556	227		556
	202,318	182,340	200,509		180,410
Revenue	1,515,053	1,347,998	1,467,951		1,278,041
Net Impairment charge	(149,546)	(184,308)	(147,307)		(182,819)
Personnel expenses	(275,387)	(263,709)	(263,560)		(248,928)
Depreciation and amortisation	(40,840)	(32,255)	(38,753)		(29,969)
Other operating expenses	(341,203)	(311,137)	(315,426)		(269,676)
Operating profit	708,077	556,589	702,905		546,649
Profit before income tax	708,077	556,589	702,905		546,649
Income tax expense	(239,284)	(167,751)	(238,597)		(165,371)
Profit after tax	468,793	388,838	464,308		381,278
Net income after tax	468,793	388,838	464,308		381,278
Other Comprehensive Income
Items that will never be reclassified subsequently to profit or loss:
Change in value of investment securities valued at FVOCI	(101,546)	2,458	(101,546)		2,458
Income tax relating to components of other comprehensive income	25,387	(615)	25,387		(615)
Other comprehensive income for the year, net of tax	(76,159)	1,843	(76,159)		1,843
Total comprehensive income for the period	392,634	390,681	388,149		383,121
Profit for the period attributable to:
Parent	468,751	388,807	464,308		381,278
Non-controlling interest	42	31	-		-
Comprehensive income for the period attributable to:
Parent	392,592	390,650	388,149		383,121
Non-controlling interest	42	31	-		-
Earnings per share
Basic & diluted (in Ghana Cedis)	1.94	1.61	1.92		1.58

Statements of financial position

(All amounts are in thousands of Ghana cedis unless otherwise stated)

		Group		Bank
	Sep-21		Sep-20	Sep-21		Sep-20
Assets
Cash and balances with banks	3,316,755		3,543,112	3,225,951		3,431,783
Loans & advances to customers	4,729,977		4,675,725	4,690,675		4,566,041
Non-pledged trading assets	561,099		999,292	559,970		999,292
Non-trading assets	6,718,983		4,128,475	6,656,459		4,150,164
Investment in subsidiaries	-		-	39,883		38,083
Other assets	860,882		698,899	870,770		754,477
Deferred income tax asset	20,755		4,392	20,755		3,777
Intangible assets	80,875		52,102	80,774		52,102
Non-current assets held for sale	28,327		28,327	28,327		28,327
Right-of-use-assets	33,693		95,231	33,693		95,231
Property and equipment	585,802		442,024	575,300		423,440
Total Assets	16,937,148		14,667,579	16,782,557		14,542,717
Liabilities
Deposits from banks	777,939		1,226,523	942,586		1,226,523
Deposits from customers	12,767,717		10,765,265	12,558,174		10,681,406
Borrowings	77,738		56,159	77,738		48,698
Current income tax liabilities	1,642		37,716	1,642		37,716
Other liabilities	600,464		411,244	519,725		403,676
Lease liabilities	48,559		92,446	48,559		92,446
Total liabilities	14,274,059		12,589,353	14,148,424		12,490,465
Equity and reserves
Stated capital	416,641		416,641	416,641		416,641
Retained earnings	1,410,266		1,039,124	1,387,551		1,018,398
Other reserves	254,197		121,760	254,197		121,760
Statutory reserve	569,058		500,085	563,430		495,453
Credit risk reserve	12,314		-	12,314		-
Non-controlling interest	613		616	-		-
Total equity attributable to equity holders	2,663,089		2,078,226	2,634,133		2,052,252
Total liabilities and equity	16,937,148		14,667,579	16,782,557		14,542,717

Statements of cash flows

(All amounts are in thousands of Ghana cedis unless otherwise stated)

	Group		Bank
	Sep-21	Sep-20	Sep-21		Sep-20
Cash flows from operating activities
Profit before tax	708,077	556,589	702,905		546,649
Depreciation expense	40,840	32,255	38,753		29,969
Impairment	205,250	51,376	203,247		51,376
Unrealised losses/(gains) - net	(3,064)	(10,147)	(2,993)		(10,128)
Gain on disposal of property and equipment	(236)	-	(227)		-
Interest expense on leases	1,615	-	1,071		-
Changes in operating assets and liabilities
Loans and advances	247,820	889,792	235,692		857,111
Other assets	(252,250)	(177,773)	(265,197)		(143,323)
Other liabilities	115,176	30,805	72,354		24,004
Deposits from banks	(298,219)	30,718	(547,382)		30,718
Deposits from customers	963,201	1,008,067	1,171,732		636,366
Mandatory reserves	(84,545)	370,022	(93,562)		370,022
Placements	(559,102)	327,608	(532,094)		327,608
Cash flows from operating activities	1,084,563	3,109,312	984,299		2,720,372
Tax paid	(226,191)	(84,266)	(223,187)		(82,118)
Net cash flows from operating activities	858,372	3,025,046	761,112		2,638,254
Cash flows from investing activities
Government securities - net	(812,225)	(2,062,200)	(903,024)		(2,049,151)
Proceeds from sale of property and equipment	236	556	227		556
Payments for property and equipment	(11,438)	(11,468)	(10,577)		(11,446)
Payments for intangible assets	(16,054)	(49,431)	(16,031)		(49,276)
Net cash used in investing activities	(839,481)	(2,122,543)	(929,405)		(2,109,317)
Cash flows from financing activities
Proceeds from/repayment of borrowings	35,176	(12,643)	35,176		(12,643)
Payment of finance lease liability	(22,898)	(9,089)	(21,938)		(9,089)
Dividends paid	(177,403)	(96,765)	(177,403)		(96,765)
Net cash used in financing activities	(165,125)	(118,497)	(164,165)		(118,497)
Net (decrease)/increase in cash and cash equivalents	(146,234)	784,006	(332,458)		410,440
Cash and cash equivalents at 1st January	3,029,150	1,721,107	3,034,214		1,726,085
Cash and cash equivalents at 30 September	2,882,916	2,505,113	2,701,756		2,136,525

Statements of changes in equity

(All amounts are in thousands of Ghana cedis unless otherwise stated)

Group				Statutory	Credit	Non-
	Stated	Retained	Other	Reserve	Risk	Controlling
	Capital	Earnings	Reserves	Fund	Reserve	Interest	Total
Balance at 1 January 2021	416,641	1,118,918	330,356	569,058	12,314	571	2,447,858
Profit for the period	-	468,751	-	-	-	42	468,793
Revaluation gains (net of tax)	-	-	(76,159)	-	-	-	(76,159)
Adjustments							-
Dividends paid		(177,403)					(177,403)
At 30 Sept 2021	416,641	1,410,266	254,197	569,058	12,314	613	2,663,089
Bank				Statutory	Regulatory
	Stated	Retained	Other	Reserve	Credit
	Capital	Earnings	Reserves	Fund	Risk		Total
Balance at 1 January 2021	416,641	1,100,646	330,356	563,430	12,314		2,423,387
Profit for the period	-	464,308	-	-	-		464,308
Revaluation gains (net of tax)	-	-	(76,159)	-	-		(76,159)
Dividends paid		(177,403)					(177,403)
At 30 Sept 2021	416,641	1,387,551	254,197	563,430	12,314		2,634,133

Disclosures

1. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards.

1. The accounting policies applied in the preparation of these financial statements were consistent with those applied in the preparation of the annual consolidated statements of 31 December 2020
2. Contingent liabilities

		Group	Group	Bank	Bank
		Sep-21	Sep-20	Sep-21	Sep-20
		GHC '000	GHC '000	GHC '000	GHC '000
Guarantees and indemnities		1,352,507	995,698	1,352,507	995,698
Documentary letters of credit		1,356,448	564,980	1,356,448	564,980
Loan Commitments		1,675,601	1,959,316	1,675,601	1,959,316
		4,384,556	3,519,994	4,384,556	3,519,994
4. Quantitative Disclosures
i. Capital Adequacy ratio				18.12%	17.30%
ii. Non-performing loan ratio	Per BOG		13.59%	12.83%
	Per IFRS		6.42%	7.38%
iii. Liquid ratio				78.96%	104.96%
iv. Common equity Tier 1 ratio				16.12%	15.30%
v. Leverage ratio				8.09%	8.73%
5. Qualitative Disclosures
i. Default in statutory liquidity (times)		Nil	1
ii. Default in statutory liquidity sanction (GHC'000)		Nil	27
iii. Other regulatory sanctions (GHC'000)		17	2,429

6. Risk Management Concept and Framework

The bank's Risk Management Concept and Framework is outlined in our Strategy, Policies, Processes and Governance structure and is based on core principles designed to ensure that we achieve our mission and serve our customers ežciently and eŸectively. Our Risk Appetite is defined within this framework. Policies and Processes are in place to guide our conduct of business within set risk appetite thresholds and guide eŸective corrective measures to deviations. Our Board of Directors approves this policy annually. The Risk Committee, the Managing Director and Risk Management Department coordinate, facilitate, and oversee the eŸectiveness and integrity of the risk management framework. The Internal and external audit functions in turn provide timely and objective assurance regarding the continuing appropriateness and adequacy of compliance with this framework, and report to the Audit and Risk sub-committee of the Board.

The principal risks faced by the bank are categorized into three; Credit, Market and Operational Risk.

The financial statements do not contain any untrue statement, misleading facts or omit material facts, to the best of our knowledge.

Signed	Signed
Daniel Sackey	Edward N. Botchway
Managing Director	Executive Director