Ecobank Malawi profit up 42% after tax: ‘Progressively impacted the economy’
Profit—after—tax for Ecobank Malawi went up by 42 percent in the year ended December 31 2019 to K7.1 billion from K5 billion in the preceding year, the bank managing director Charles Asiedu said.
In his presentation on the bank’s performance in the year under review in Blantyre, Asiedu said Ecobank Malawi continued its growth trajectory in the year under review amid tough economic condition arising from effects of the May 21 2019 Tripartite Elections.
The bank’s total assets remained stable at K262 billion, principally driven by funding from borrowed funds which grew by 37 percent to K82 billion, he said.
Ecobank loan book increased to K43 billion, representing growth of 13 percent which underlines the bank’s commitment to support growth of the economy.
However, the bank indicates that the 2020 outlook is murky with the spread of coronavirus, but undertook an analysis of the business environment and is encouraging use of electronic channels.
Ecobank also says the forthcoming fresh presidential elections reintroduces a new wave of uncertainties on the market.
“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,” reads the statement co-signed by Ecobank Chairperson, Leonnard Chikadya and Managing Director, Charles Asiedu.
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.
