Business
Ecobank Malawi registers K4-billion profit
August 07, 2020 / Wahard Betha
Ecobank Malawi says its profit before tax grew by 5% to K5.4-billion while profit after tax increased by 8% to K4-billion in the financial year ended June 30.
In a summary unaudited financial statement for the year ended June 30, 2020 signed by MD Charles Asiedu and Chairman Leonard Chikadya, the financial house says the results manifest resilience of the Bank in light of the coronavirus (Covid-19) pandemic and political instability owing to the disputed 2019 elections, which had a knock on effect on business.
“The financial performance underscores the resilience of the Bank arising from our leadership position in trade finance, the digitization of our products and services and better efficiency in delivering our customer-centric services,” says Asiedu.
He states that in the year ended June 30, 2020, the Bank’s operating income at MK9.6 billion declined year-on-year by 8% on account of slowdown in business due to the political uncertainty and Covid-19.
Asiedu says benefiting from continued strategic cost, management and reduced business, operating costs were flat year-on-year at Mk4.2 billion resulting in cost to income ratio of 44%.
He also says impairment loss charges reduced year-on-year by 96% to MK54 million arising from improved risk management practices.
The Bank’s total assets increased to K278 billion representing growth of 19% which was driven by an increase of 13% in deposits from customers and funding from other banks which grew by 54% to MK124 billion.
The loan book decreased to K35 billion representing a reduction of 8%, which resulted from lower utilization of facilities by the bank’s major customers.
During the year under review, the Bank was awarded the Banking Brand of the Year 2020 while its MD scooped the Banking CEO of the Year from the Global Banking and Finance of the UK.
“The awards underpin the confidence that customers, stakeholders and the public have in the Bank and its leadership,” says Asiedu.
Meanwhile, the Bank has projected a challenging economic outlook in the second half of the year 2020 due to Covid-19 whose cases are increasing at an alarming rate in the country.
Asiedu says: “Accordingly, earlier projections of Gross Domestic products (GDP) growth, inflation, interest rates and exchange rates may be negatively impacted by Covid-19 in the short to medium term.”
“The ushering in of a new government after the fresh presidential elections could affect policy making and implementation. The Bank has put in place strategic initiatives aimed at mitigating the effects of Covid-19 on the Bank and staff.”
The Bank is accelerating the sale of its world class digital solutions targeting every Malawian in the second half of the year.
“We are cautiously optimistic about the future and we will continue to make the appropriate investments to bring more value to our customers and other stakeholders,” says Asiedu.
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The establishment of a stable and self-sustaining ecosystem, but not necessarily the one that existed before mining began. In many cases, complete restoration may be impossible, but successful remediation, reclamation, and rehabilitation can result in the timely establishment of a functional ecosystem.
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Remediation:
The cleanup of the contaminated area to safe levels by removing or isolating contaminants. At mine sites, remediation often consists of isolating contaminated material in pre-existing tailings storage facilities, capping tailings and waste rock stockpiles with clean topsoil, and collecting and treating any contaminated mine water if necessary.
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