Ecobank Transnational Incorporated : Ghana’s 2Q 2021 PDF 90.12 KB

Ecobank Ghana PLC

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

	Cost to Income	39.65%
Key	Return on Average Assets	4.27%
Return on Average Equity	27.84%
Ratios
Non Funded Income to Total Income	33.70%
	June 2020 - June 2021	Growth
Financial	Profit Before Tax	32.85%
Total Assets	16.59%
Highlights
Deposits	13.03%
	Revenue	12.04%

Statements of comprehensive income

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

	Group		Bank
	June-21	June-20	June-21		June-20
Interest income	751,376	734,608	732,901		713,001
Interest expense	(98,519)	(100,747)	(98,692)		(88,243)
Net interest income	652,857	633,861	634,209		624,758
Fee and commission income	180,948	117,384	175,828		92,593
Fee and commission expense	(17,157)	(4,370)	(17,156)		(4,370)
Net fee and commission income	163,791	113,014	158,672		88,223
Net trading income	152,867	116,226	152,866		116,159
Other operating income	15,006	15,357	14,450		15,316
Gain on sale of equipment	177	405	177		405
	168,050	131,988	167,493		131,880
Revenue	984,698	878,863	960,374		844,861
Net Impairment charge	(112,274)	(142,148)	(110,947)		(142,076)
Personnel expenses	(166,904)	(167,550)	(159,131)		(157,343)
Depreciation and amortisation	(23,220)	(24,435)	(21,822)		(23,018)
Other operating expenses	(200,324)	(181,931)	(193,545)		(171,013)
Operating profit	481,976	362,799	474,929		351,411
Profit before income tax	481,976	362,799	474,929		351,411
Income tax expense	(156,597)	(109,545)	(154,474)		(101,568)
Profit after tax	325,379	253,254	320,455		249,843
Net income after tax	325,379	253,254	320,455		249,843
Other Comprehensive Income
Items that will never be reclassified subsequently to profit or loss:
Change in value of investment securities valued at FVOCI	(24,150)	79,924	(24,150)		79,924
Income tax relating to components of other comprehensive income	6,037	(19,981)	6,037		(19,981)
Other comprehensive income for the year, net of tax	(18,113)	59,943	(18,113)		59,943
Total comprehensive income for the period	307,266	313,197	302,342		309,786
Profit for the year attributable to:
Parent	325,337	253,230	320,455		249,843
Non-controlling interest	42	24	-		-
Comprehensive income for the year attributable to:
Parent	307,224	313,173	302,342		309,786
Non-controlling interest	42	24	-		-
Earnings per share
Basic & diluted (in Ghana Cedis)	2.02	1.57	1.99		1.55

Consolidated cashflow statement

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

	Group		Bank
	June-21	June-20	June-21		June-20
Cash flows from operating activities
Profit before tax	481,976	362,799	474,929		351,411
Depreciation expense	23,220	24,435	21,822		23,018
Impairment	112,274	113,269	110,947		113,269
Unrealised losses - net	(20,341)	(21,031)	(20,362)		(21,040)
Gain on disposal of property and equipment	(177)	-	(177)		-
Additions to right-of-use assets	-	(9,089)	-		(9,089)
Interest expense on leases	-	2,075	-		2,075
Changes in operating assets and liabilities
Loans and advances	445,720	573,357	409,506		570,737
Other assets	25,892	163,749	94,005		106,746
Other liabilities	144,529	(165,154)	84,550		(164,899)
Deposits from banks	(271,155)	(623,343)	(567,367)		(623,343)
Deposits from customers	339,630	986,982	587,972		688,953
Mandatory reserves	(631,755)	478,933	(631,755)		478,933
Placements	362,202	327,608	357,530		327,608
Cash flows from operating activities	1,012,015	2,214,590	921,600		1,844,379
Tax paid	(170,707)	(50,149)	(168,881)		(49,399)
Cash flows from operating activities	841,308	2,164,441	752,719		1,794,980
Cash flows from investing activities
Government securities - net	(540,314)	(1,091,213)	(485,591)		(1,046,071)
Proceeds from sale of property and equipment	186	-	177		-
Payments for property and equipment	(7,149)	(6,843)	(6,427)		(6,820)
Payments for intangible assets	(15,959)	(49,276)	(15,936)		(49,276)
Increase in investments in subsidiaries	-	-	(200)		-
Net cash used in investing activities	(563,236)	(1,147,332)	(507,977)		(1,102,167)
Cash flows from financing activities
Repayment of/(Proceeds from) borrowed funds	(8,539)	10,131	(8,539)		10,131
Financing lease repayment	(3,730)	-	(2,374)		-
Dividend paid	(177,403)	-	(177,403)		-
Net cash used in financing activities	(189,672)	10,131	(188,316)		10,131
Net increase in cash and cash equivalents	88,400	1,027,240	56,426		702,944
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 June	3,117,550	2,748,347	3,090,640		2,429,029

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	-	325,337	-	-	-	42	325,379
Revaluation losses (net of tax)	-	-	(18,113)	-	-	-	(18,113)
Dividends paid		(177,403)					(177,403)
At 30 June 2021	416,641	1,266,852	312,243	569,058	12,314	613	2,577,721

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	-	320,455	-	-	-	320,455
Revaluation gains/losses (net of tax)	-	-	(18,113)	-	-	(18,113)
Dividends paid		(177,403)				(177,403)
At 30 June 2021	416,641	1,243,698	312,243	563,430	12,314	2,548,326

Statements of financial position

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

	Group		Bank
	June-21	June-20	June-21		June-20
Assets
Cash and balances with banks	3,788,144	3,306,983	3,690,111		3,195,080
Loans & advances to customers	4,532,076	4,631,903	4,516,860		4,587,175
Non pledged trading assets	561,099	1,288,462	559,970		1,288,462
Non-trading assets	6,196,927	3,603,395	6,178,722		3,538,687
Investment in subsidiaries	-	-	40,083		38,083
Investment in associate	-	-	-		10,296
Other assets	582,740	528,354	511,568		467,870
Deferred income tax asset	-	531	-		-
Intangible assets	94,295	52,403	92,765		52,403
Non-current assets held for sale	28,327	28,327	28,327		28,327
Right-of-use-assets	37,568	95,231	37,518		95,231
Property and equipment	587,596	538,075	573,422		421,313
Total Assets	16,408,772	14,073,664	16,229,346		13,722,927
Liabilities
Deposits from banks	805,003	572,462	922,601		779,596
Deposits from customers	12,144,146	10,744,180	11,974,414		10,413,993
Borrowings	65,268	30,820	65,268		59,473
Current income tax liabilities	134,127	99,180	134,127		99,180
Deferred income tax liabilities	4,626	-	4,626		-
Other liabilities	629,817	436,845	531,920		202,333
Lease liabilities	48,064	92,670	48,064		92,670
Total liabilities	13,831,051	11,976,157	13,681,020		11,647,245
Equity and reserves
Stated capital	416,641	416,641	416,641		416,641
Retained earnings	1,266,852	1,000,336	1,243,698		983,728
Other reserves	312,243	179,860	312,243		179,860
Statutory reserve	569,058	500,085	563,430		495,453
Credit risk reserve	12,314	-	12,314		-
Non-controlling interest	613	585	-		-
Total equity attributable to equity holders	2,577,721	2,097,507	2,548,326		2,075,682
Total liabilities and equity	16,408,772	14,073,664	16,229,346		13,722,927

Disclosures

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

2. 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

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