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The Managing Director of Ecobank Ghana PLC, Mr Daniel Sackey, says the Domestic Debt Exchange Programme (DDEP) affected the bank’s financial performance last year and the first quarter of 2023.   

He said although the DDEP had resulted in significant impairment losses relating to the bank’s investments in government securities, this was a temporary setback, which the bank expected to recover quickly from.   

“The bank has booked the required impairment and closed the chapter on local bonds. The bank remains liquid, solvent, and the most capitalized after the debt exchange programme. We remain confident in our capacity to recover and return to profitability by the end of 2023,” he said in answer to a question after the annual general meeting.  

Impairment charge on the government bonds due to the domestic debt restructuring in 2022 resulted in a net impairment charge of GH¢1.7 billion, and a loss of GH¢27. 2 million before tax payment, compared with the pre-tax profit of GH¢893.73 million in 2021.  

The Bank will prioritize rebuilding its capital base and liquidity buffers to deliver superior Return on Equity (ROE) for our valued shareholders. The non-performing loans (NPLs) were well contained and recorded a reduction from 6.22% in 2021 to 5.66% in 2022(IFRS)  

On the outlook for 2023, Mr Sackey said it was clear the macroeconomic environment would be challenging.  

“Revenues, particularly income from investments, will be slightly affected because the new bonds have lower coupons than the previous ones. However, the Medium to Long term fundamentals of the economy remains encouraging, particularly, with the speed with which the country has been able to secure an IMF deal and we are optimistic that the government and its major stakeholders will navigate well through the economic headwinds, which we view as only short term.  

On digitization, Mr Sackey said the strategic investment in technology and digital advancement has enormously benefited the customers (mainly convenience and cost-effectiveness), our business operations (in terms of improved revenues and the cost to serve), as well as our shareholders.  

He said the huge shift in the consumption habits of our customers in favour of digital banking demonstrates a growing preference for the convenience of doing banking remotely, from their homes and offices.   

“We, therefore, believe that the future of banking will continue to be digital, and we will thus continue to invest in the right technology to support our clients,” he added. 

On his part, Chairman of the Board of Directors of the bank, Samuel Ashitey Adjei, the bank was poised for sustainable growth and profitability despite a loss in 2022.  

 
"We are confident in the resilience and potential of our institution, and we look forward to a bright future together," he said. 
  
The Chairman of the Board of Directors said the total revenue of the bank increased by 40.3 per cent to GH¢2. 97 billion. 
  
He said the revenue growth was mainly driven by increases in net interest income and fee-based income, as well as the successful implementation of trade and cash management initiatives. 
  
Mr Adjei said net interest income grew by 65 per cent to GH¢2.5 billion. 
  
"Our balance sheet remained strong with total assets of GH¢25. 9 billion, growth of 44.5 per cent from the previous year," Mr Adjei stated. 
  
The Chairman of the Board said customers' deposits reached GH¢20. 4 billion, up by 54.4 per cent, is driven by improved product offering and increased customer confidence in the Ecobank brand. 
  
"Despite the economic challenges, we continue to support business growth, as evidenced by our net loan book of GH¢8. 9 billion, which is one of the largest in the industry," Mr Adjei said.