Ecobank Malawi’s profits-after-tax for the year ended December 2013 jumped by close to 11 000 percent to K602.9 million (US$1 481 326.78) from K5.6 million (US$13 759.21) the previous year, according to the bank’s summary audited reports published in the press on Monday.
According to the report signed by the bank’s managing director Charles Asiedu and Ecobank’s board chairperson Masauko Msungama, the pan-African financial institution notes that it achieved a record performance in 2013 in both earnings and balance sheet growth.
“Revenues increased by 133 percent to K4.1 billion benefitting from increased earnings, assets and substantial growth in trade in finance. Our operating expenses grew in line with our expansion programme and general inflationary trend. The growth in operating expenses was lower than revenue growth due to enforcement of cost discipline,” reads the report in part.
The bank further notes that in a bid to reposition its loan portfolio, additional K583 million (US$1 432 432.43) impairment losses were recognised.
However, profit before tax of K892 million (US$2 191 646.19) was achieved compared to K12 million (US$29 484.03) in 2012.
According to the summary report, the bank’s total assets grew by 110 percent to K24 billion primarily from increase in customer deposits of 159 percent to K18.4 billion and additional capital injected by shareholders.
Ecobank Malawi Limited shareholders pumped in $5 million (K2.2 billion) late last year in preparation for Basel II roll out.
The pan-African Bank argues that with increased deposits it was able to grow loans and advances portfolio by 46 percent to K8.6 billion.
According to the financial institution, the bank has embarked on a branch expansion programme aimed at improving the service delivery platform to serve customers better.