Ecobank Malawi profit after tax up 42%
Ecobank Malawi profit after tax grew by 42 percent from K5 billion in 2018 to K7.1 billion in 2019, to a strong growth in non-interest income, controlled cost and lower provisions arising from lower bad loans, the bank said on Thursday.
In his presentation on the bank’s performance in the year under review in Blantyre, Ecobank Malawi managing director Charles Asiedu said at K20 billion, the bank’s total equity gives the business K5 billion single obligor limit which is healthy for business growth.
He, however said, declining margins impacted negatively on net interest income and poses revenue headwinds in 2020, observing that during the year under review, loans and advances grew by 13 percent to K42.6 billion but lower than the budget as the bank continued its cautious approach to lending.
Asiedu said in the wake of the coronavirus, the bank undertook an analysis of the business environment on the impact of the coronovirus outbreak and is encouraging use of electronic channels.
Going forward, Asiedu believes the bank has adequate structures in place to enable its business continue to make positive impact in Malawi although the political environment has significant impact on deal generation and performance of loans already granted.
He said: “We have progressively impacted the economy over the past five years which has led us to become Malawi’s third biggest bank. What is important, however, is to continue the growth trajectory in the midst of internal and external challenges
“Cancellation of the May 2019 Presidential Elections and the on-set of the rerun has ushered in a new wave of uncertainties. Businesses are slow in making commitments as a result of the uncertainties.”
During the year under review, the bank’s revenue grew by 14 percent to K19.7 billion from K17.3 billion the previous year while balance sheet grew to K262 billion, up from K261 billion registered in 2018, making Ecobank Malawi the third largest bank in terms of balance sheet.
