Chairman David Whartman attributed the recovery to an effective implementation of the bank’s strategic plan which entailed increasing the bank’s distribution network, widening product range as well as improving service quality.
“Significant growth was recorded in all key performance matrices mainly revenue, profitability and a marked improvement in asset quality,” he said.
Ecobank is the leading pan-African banking group. The Ecobank group’s revenue for the period under review grew by 46 percent to US$1,8 billion from US$1,2 million. Pre-tax profit rose by 25 percent to US$348 million from US$277,4 million. Net income advanced by 39 percent
Ecobanks Zimbabwe’s interest income surged 96 percent to US$9,8 million from U$6,5 million in the comparable period, outpacing a 26 percent increase in expenses while a decrease in loan impairment charges from US$3,5 million in 2011 to US$1,3 million also boosted net interest income.
“The board is confident that this positive performance trend will be sustained as the bank’s strategic initiatives continue to bear fruits,” said Whartman
In the review period, the bank opened four new branches in Mbare, Bulawayo, Chiredzi and Chitungwiza while a number of new products were launched.
Ecobank Zimbabwe also mobilised credit lines worth US$46 million from its parent, the Ecobank Group.
The Ecobank chairman said 2013 would be a challenging year, given uncertainties as a result of pending elections. Zimbabwe is due to hold elections by mid-year. This coupled with the RBZ’s directive to lower interest rates as well as bank charges would impact on revenue, Mr Whartman said.
“The board is mindful of these challenges but believes that this healthy foundation, a supportive parent company as well as a combination of a growing product range and client base will stand the bank in good stead to weather the storm,” he said
Whartman said the bank’s capitalisation stood at US$28 million, above the Reserve Bank of Zimbabwe’s threshold of US$22,5 million.
Shareholders injected US$22,5 million into the bank during the review period.
Post published in: Business