Ecobank H1 profit up 133%
Ecobank Malawi Limited has registered a K1.4 billion profit after tax in the first half of this financial year compared to K622 million realised during the same period last year, representing a surge of 133 percent.
In its published summary of unaudited financial results for the period ended June 30 2015, signed by the bank’s managing director Charles Asiedu and board chairperson Masauko Msungama, the bank says it has recorded strong performance in both earnings and balance sheet growth in the first half of 2015.
“Ecobank has posted a profit before tax of K2 billion, representing an increase of 133 percent year-on-year and profit after tax of K1.4 billion,” reads the statement.
“The bank registered an increase year-on-year by 48 percent to K4.1 billion largely due to growth in interest-earning assets and trade finance business while on the other hand registering an increase in operating expenses of 16 percent which is lower than revenue growth due to enforcement of cost discipline resulting in cost to income ratio of 46 percent.”
However, the bank says that “the recent revision in foreign exchange trading guidelines and reduction of the Liquidity Reserve Requirement to 7.5 percent from 15.5 percent by the Reserve Bank of Malawi (RBM) may exert pressure on interest and trading margins in the second half of the year although market liquidity is expected to improve significantly”.
The bank has since expressed optimism of a better performance following the strong performance recorded in the first half of the year.
