Ecobank bullish over 2022 outlook

0
1202

Melody Chikono
ECOBANK Zimbabwe is optimistic that it will sustain its sound operations in 2022 after recording a 61% return on equity (ROE) and a 31% cost to income ratio buttressed by a good asset mix  and a managed good appetite on risk which anchored sustainable  performance.

ROE measures how effectively a company’s management uses investors’ money, checking whether management is growing the company’s value at an acceptable rate.

The bank said it was aiming to generate sustainable earnings underpinned by a robust cost containment model.

During the financial year 2021, the bank’s shareholders equity grew 37% to $ 9,74 billion while the balance sheet closed that year at $84,75 billion largely driven by deposit liabilities of $68,80 billion.

Declining net margins on commission and fees reduced operating income by 18% from $14,44 billion to $ 11,08 billion prior year as a combination of smart  sourcing and  a company-wide  costs consciousness saw costs rising marginally  by 18%.

Overally the bank posted a profit before tax increase of 68% from $2,65 billion in 2020 to  $4,44 billion reflecting  a consistent  and robust performance in a challenging operating
environment.

In a statement accompanying the financial results for the year ending December 31, 2021, Ecobank chairperson Emmanuel Gwatidzo said the financial institution was pursuing  strategies to maintain its  top tier position in the banking sector.

“The Ecobank board of directors is optimistic that the sound bank operations will be sustained in 2022.The bank delivered a Return on equity of 61% and a cost to income ratio   of 37%. The business will strive to generate sustainable earnings   underpinned by a robust cost containment model. The good asset mix and managed appetite risk weighted assets anchor sustainable performance. Aggressive focus on deposit mobilisation improved margins on loans and improved net interest income by 67% to $4,66 billion  in  2021 from  $2,790 billion.” he said.

Gwatidzo said the bank would continue to exploit the economic environment to identify opportunities and be adaptive as it maintains an organic growth trajectory

The anticipated mining sector growth is also seen anchoring the productive sectors of the economy and the bank will leverage on its digital platforms to provide seamless services to all its market segments under the new
normal.

“The company will avail its prowess, capitalise on synergies and actively participate   in facilitating appropriate financial intervention during these challenging times ” Gwatidzo
said

  • Follow us on Twitter @NewsDayZimbabwe