Ecobank Uganda has once again showed that the worst years are over after registering an impressive performance in 2017.
According to financial results for the year ended December 31, 2017 released on Monday, Ecobank Uganda made a net profit of Shs1.54bn, up from Shs813.3m recorded in 2016. This represents a record growth of 89.4%.
The Pan-African bank that will be celebrating 10 years in Uganda later this year didn’t have a good start in Uganda, but its performance over the last two years indicates a bright future.
All key performance parameters for the bank were positive in 2017, explaining the increase in profits.
Ecobank saw total income increase to Shs44.1bn in 2017, up from 41.7bn in 2016.
The bank’s loans advanced to customers increased by 24.2% to Shs145.8bn in 2017, up from Shs117.3bn in 2016.
Additionally, customers’ deposits increased by 28.4% to Shs274.8bn in 2017, up from Shs213.9bn recorded a year earlier.
Total assets also increased to Shs390.8bn, from 280.4bn in 2016, representing 39.3%.
On a further positive note, the bank’s core capital rose up to Shs55.4bn from Shs43.4bn in 2016.
While industry Non-Performing Loans (NPLs) remain high, Ecobank’s reduced to Shs9.8bn in 2017, down from Shs10bn, while bad loans written off reduced tremendously to Shs393.9m, down from Shs7bn in 2016.
Speaking about the factors behind this great turnaround in an exclusive interview with Business Focus, Clement Dodoo, the Ecobank Uganda Managing Director said that the need to consolidate the 2016 performance meant that they had to employ good risk management.
“…we were a little careful with asset growth,” Dodoo said, adding: “We also kept a close lid on operational losses to ensure we do not lose money. We were a bit conservative with aggressive revenue growth because we were consolidating our solid controls position.”
Dodoo noted that they have put in place best systems to ensure sustainable growth.
“Now that we are now very convinced that we have put the right systems in place to avert leakages, we will be focusing on asset growth henceforth,” he said, adding: “We are ensuring gradual growth as rapid growth in itself can kill you.”
