Ecobank Transnational Incorporated (Ghana) HY 2014 financial results

337 views
225 views

Published on

Ecobank Transnational Incorporated (Ghana) listed on the Ghana Stock Exchange has released its half year results. Check out insights into this company in their presentation which appears below.
Sign up to the www.theinvestormailinglist.com to receive earnings presentations of all listed companies in Africa by email

Published in: Investor Relations
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
337
On SlideShare
0
From Embeds
0
Number of Embeds
27
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Ecobank Transnational Incorporated (Ghana) HY 2014 financial results

  1. 1. - Revenue grew by 14% to $1,073 million (up 58% to GHC 2,913 million) - Profit before tax up by 27% to $255 million (up 77% to GHC 693 million) - Profit after tax up by 15% to $194 million (up 59% to GHC 530 million) - Total assets up 14% to $23.4 billion (up 72% to GHC 70.3 billion) - Total equity up 2% to $2.3 billion (up 53% to GHC 6.9 billion) Financial Highlights US$'000 GHC'000 US$'000 GHC'000 US$ GHC Income Statement : Revenue 1,073,033 2,912,963 944,665 1,842,096 14% 58% Profit before income tax 255,390 693,306 200,946 391,844 27% 77% Income tax expense 60,278 163,637 30,135 58,763 100% 178% Profit for the period 193,879 529,669 169,294 333,081 15% 59% Statement of Financial Position : Total assets 23,431,737 70,332,702 20,553,432 40,901,329 14% 72% Loans & advances to customers 12,383,702 37,170,920 9,939,506 19,779,617 25% 88% Deposits from customers 17,312,404 51,964,912 15,010,479 29,870,853 15% 74% Total equity 2,282,270 6,850,461 2,243,724 4,465,010 2% 53% By Order of the Board of Directors 2% Laurence do Rego Executive Director, Finance www.ecobank.com Ecobank delivers strong performance for the first six months of 2014 Period ended 30 June 2014 Period ended 30 June 2013 % Variation June 2014 - June 2013 Commenting on these results, Albert Essien, Group CEO said: “We are pleased with these strong first half results, which are evidence of the operational improvements we have made across the business. Our focus on efficiency has brought the cost-income ratio down further and driven a 27% increase in profit before tax. All regions have contributed to this robust performance; and from a business perspective, Treasury has been particularly strong. We have also continued our long-term strategic development by starting banking operations in Mozambique, an important addition to our Southern African cluster. We are delighted to have secured a banking license in Angola and intend to open there in due course. At our AGM in June, several new members were elected to the Group’s Board of Directors, including our Chairman, Emmanuel Ikazoboh, and we welcome them all. Much has been achieved across several fronts in the second quarter and we look forward to continuing this progress for shareholders in the rest of 2014.”
  2. 2. Closing 3.00 1.99 Average 2.71 1.95 Unaudited Consolidated Income Statement US$'000 GHC'000 US$'000 GHC'000 US$ GHC Interest income 829,928 2,253,006 778,334 1,517,751 7% 48% Interest expense (291,355) (790,941) (269,102) (524,749) 8% 51% Net interest income 538,573 1,462,065 509,232 993,002 6% 47% Fee and commission income 324,853 881,878 288,540 562,653 13% 57% Fee and commission expense (16,386) (44,483) (11,146) (21,735) 47% 105% Net fee and commission income 308,467 837,395 277,394 540,918 11% 55% Lease income 696 1,889 877 1,710 -21% 10% Dividend income 3,964 10,761 2,974 5,799 33% 86% Net trading income 210,319 570,953 141,339 275,611 49% 107% Gains less losses from investment securities (6) (16) 59 115 -110% -114% Other operating income 11,020 29,916 12,790 24,941 -14% 20% Operating income before impairment loss 1,073,033 2,912,963 944,665 1,842,096 14% 58% Impairment losses on financial assets (86,885) (235,867) (73,186) (142,713) 19% 65% Operating income after impairment loss 986,148 2,677,096 871,479 1,699,383 13% 58% Staff expenses (340,082) (923,221) (299,984) (584,969) 13% 58% Depreciation and amortisation (65,925) (178,967) (61,552) (120,026) 7% 49% Other operating expenses (324,725) (881,531) (308,972) (602,495) 5% 46% Total operating expenses (730,732) (1,983,719) (670,508) (1,307,490) 9% 52% Operating profit 255,416 693,377 200,971 391,893 27% 77% Share of loss of associates (26) (71) (25) (49) na na Profit before tax 255,390 693,306 200,946 391,844 27% 77% Income tax expense (60,278) (163,637) (30,135) (58,763) 100% 178% Profit for the period from continuing operations 195,112 529,669 170,811 333,081 14% 59% Losses from discountinued operations (1,233) (3,347) (1,517) (2,958) -19% 13% Profit for the period 193,879 526,322 169,294 330,123 15% 59% Attributable to: Owners of the parent 164,015 445,250 148,956 290,464 10% 53% Non-controlling interests 29,864 81,072 20,338 39,659 47% 104% 193,879 526,322 169,294 330,123 15% 59% - Basic 0.95 2.59 0.87 1.71 10% 52% - Diluted 0.80 2.17 0.71 1.38 13% 57% Period ended 30 June 2014 Period ended 30 June 2013 % Variation June 2014 - June 2013 Earnings per share for profit attributable to the equity holders of the parent company during the period (expressed in United States cents/Ghana pesewas per share)
  3. 3. 2014 2013 Average 2.71 1.95 Unaudited Consolidated Statement of Comprehensive Income US$'000 GHC'000 US$'000 GHC'000 US$' GHC Profit for the period 193,879 526,322 169,294 330,123 15% 59% Exchange difference on translation of foreign operations (59,327) (161,055) (75,818) (147,845) -22% 9% Available-for-sale investments: Net valuation (losses)/gains taken to equity 44,414 120,570 (26,224) (51,137) -269% -336% Taxation relating to components of other comprehensive income (3,265) (8,863) 2,905 5,665 -212% -256% Other comprehensive income for the period, net of taxation (18,178) (49,348) (99,137) (193,317) -82% -74% Total comprehensive income for the period 175,701 476,974 70,157 136,806 150% 249% Total comprehensive income attributable to: Owners of the parent 148,637 403,504 61,729 120,371 141% 235% Non controlling interests 27,064 73,470 8,428 16,435 221% 347% 175,701 476,974 70,157 136,806 150% 249% Period ended 30 June 2014 Period ended 30 June 2013 % Variation June 2014 - June 2013
  4. 4. 2014 2013 Closing 3.00 1.99 Unaudited Consolidated Statement of Financial Position Average 2.71 1.95 Assets US$'000 GHC'000 US$'000 GHC'000 US$ GHC Cash and balances with central banks 3,062,591 9,192,673 2,073,163 4,125,594 48% 123% Treasury bills and other eligible bills 1,163,290 3,491,731 1,800,551 3,583,096 -35% -3% Loans and advances to banks 1,414,566 4,245,961 1,857,127 3,695,683 -24% 15% Loans & advances to customers 12,383,702 37,170,920 9,939,506 19,779,617 25% 88% Trading assets 193,101 579,612 28,465 56,645 578% 923% Derivative financial instruments 134,484 403,667 135,174 268,996 -1% 50% Investment securities: available for sale 1,625,939 4,880,419 1,631,639 3,246,962 0% 50% Investments in associates 28,031 84,138 17,783 35,388 58% 138% Pledged assets 981,580 2,946,311 686,818 1,366,768 43% 116% Intangible assets 498,926 1,497,576 514,654 1,024,161 -3% 46% Property and equipment 876,071 2,629,615 842,708 1,676,989 4% 57% Investment properties 167,798 503,662 199,383 396,772 -16% 27% Deferred income tax assets 100,954 303,024 89,250 177,608 13% 71% Others assets 670,205 2,011,687 737,211 1,467,049 -9% 37% Assets held for sale 130,499 391,706 - - na na Total Assets 23,431,737 70,332,702 20,553,432 40,901,329 14% 72% Liabilities Deposits from other banks 1,005,546 3,018,247 958,442 1,907,300 5% 58% Deposits from customers 17,312,404 51,964,912 15,010,479 29,870,853 15% 74% Other deposits 672,681 2,019,119 494,289 983,635 36% 105% Derivative financial instruments 1,138 3,416 384 764 196% 347% Borrowed funds 1,060,833 3,184,196 980,532 1,951,259 8% 63% Other liabilities 809,700 2,430,397 757,485 1,507,396 7% 61% Other provisions 31,248 93,794 32,494 64,663 -4% 45% Current income tax liabilities 53,734 161,288 21,113 42,015 155% 284% Deferred income tax liabilities 39,380 118,203 39,844 79,290 -1% 49% Retirement benefit obligations 20,058 60,206 14,646 29,146 37% 107% Liabilities held for sale 142,745 428,463 - - na na Total Liabilities 21,149,467 63,482,241 18,309,708 36,436,319 16% 74% Equity Equity attributable to the owners of the parent Share capital and premium 1,409,001 4,229,257 1,411,556 2,808,996 0% 51% Retained earnings and reserves 695,493 2,087,592 666,872 1,327,075 4% 57% Shareholders' equity 2,104,494 6,316,849 2,078,428 4,136,071 1% 53% Non-controlling interests 177,776 533,612 165,296 328,939 8% 62% Total Equity 2,282,270 6,850,461 2,243,724 4,465,010 2% 53% Total Liabilities and Equity 23,431,737 70,332,702 20,553,432 40,901,329 14% 72% As at 30 June 2014 As at 30 June 2013 % Variation June 2014 - June 2013
  5. 5. 2014 2013 Closing 3.00 1.990 Average 2.71 1.950 1.885 Uaudited Consolidated Statement of Cash Flows US$'000 GHC'000 US$'000 GHC'000 US$ GHC Cash flows from operating activities Profit before tax 255,390 693,307 200,946 391,845 27% 77% Net trading income - foreign exchange (167,806) (455,544) (91,830) (179,069) 83% 154% Net gain from investment securities (6) (17) (59) (114) -90% -85% Impairment losses on loans and advances 87,668 237,992 72,685 141,736 21% 68% Impairment losses on other financial assets (783) (2,126) 501 977 -256% -318% Depreciation of property and equipment 51,676 140,285 51,784 100,979 0% 39% Net interest income (538,573) (1,462,064) (509,232) (993,002) 6% 47% Amortisation of software and other intangibles 14,249 38,682 9,768 19,048 46% 103% Impairment charges: - Property and equipment - - 128 250 -100% -100% Profit on sale of property and equipment (848) (2,302) (172) (335) 394% 587% Share of loss of associates 26 71 (25) (49) -204% -245% Income taxes paid (70,362) (191,012) (26,581) (51,833) 165% 269% Changes in operating assets and liabilities - Trading assets (78,184) (234,677) 64,389 128,134 -221% -283% - Derivative financial assets 6,862 20,597 8,243 16,404 -17% 26% - Other treasury bills (35,363) (106,146) - - na na - Loans and advances to banks (170,079) (510,509) 65,746 130,835 -359% -490% - Loans and advances to customers (727,279) (2,183,000) (498,561) (992,136) 46% 120% - Pledged assets 153,854 461,808 13,236 26,340 1062% 1653% - Other assets (19,708) (59,156) 157,101 312,631 -113% -119% - Mandatory reserve deposits (165,469) (496,670) (81,407) (162,001) 103% 207% - Other deposits (5,279) (15,845) 124,929 248,609 -104% -106% - Due to customers 822,500 2,468,816 390,001 776,102 111% 218% - Derivative liabilities (316) (949) 255 507 -224% -287% - Other provisions 2,737 8,215 6,454 12,843 -58% -36% - Other liabilities (116,398) (349,380) 24,826 49,404 -569% -807% Interest received 829,928 2,491,112 778,334 1,548,885 7% 61% Interest paid (291,355) (874,531) (269,102) (535,513) 8% 63% Net cashflow from operating activities (162,918) (383,043) 492,358 991,477 -133% -139% Cash flows from investing activities Acquisition/disposal of subsidiaries (2,723) (8,173) 72,408 144,092 -104% -106% Purchase of software (13,098) (39,316) (9,928) (19,758) 32% 99% Net purchase of property and equipment (54,221) (162,750) (58,381) (116,177) -7% 40% Sale of investment securities 267,550 803,078 700,109 1,393,217 -62% -42% Net cashflow from investing activities 197,508 592,839 704,208 1,401,374 -72% -58% Cash flows from financing activities Repayment of borrowed funds (242,573) (728,107) (259,152) (515,712) -6% 41% Dividends paid to non-controlling shareholders (28,078) (84,280) (21,696) (43,175) na na Net cash used in financing activities (270,651) (812,387) (280,848) (558,887) -4% 45% Net increase in cash and cash equivalents (236,062) (602,591) 915,718 1,833,964 -126% -133% Cash and cash equivalents at start of period 1,641,749 3,416,880 1,813,053 3,416,880 -9% 0% Effects of exchange differences on cash and cash equivalents (251,115) 651,276 (51,929) 76,070 384% 756% Cash and cash equivalents at end of period 1,154,572 3,465,565 2,676,841 5,326,914 -57% -35% Period ended 30 June 2014 Period ended 30 June 2013 % Variation Jun 2014 - Jun 2013
  6. 6. Unaudited Statement of Changes in Equity in US '000 Share Capital and Premium PPE Revaluation Reserve Available for Sale Fin. Assets reserves Currency Translation Reserve Other Reserves Retained Earnings Total equity and reserves attributable Non-Controlling Interests Total Equity At 31 December 2012/ 1 January 2013 1,409,001 63,624 (342) (356,428) 260,141 630,192 2,006,188 167,729 2,173,917 Changes in Equity for 2013: Currency translation differences (57,839) (57,839) 2,085 (55,754) Net changes in AFS investments, net of tax (40,685) (40,685) (40,685) Net gains on revaluation of property 1,976 1,976 1,976 Profit for the year 95,541 95,541 52,232 147,773 Total Comprehensive Income - 1,976 (40,685) (57,839) - 95,541 (1,007) 54,317 53,310 Dividend relating to 2012 (68,879) (68,879) (23,834) (92,713) Issued Share Capital - - Share options granted - - Convertible loans - equity component 134 134 134 Reclassification of share option reserve - - Transfer and Reclassification 82,085 (82,085) - - Other equity transactions - - - At 31 December 2013 / 1 January 2014 1,409,001 65,601 (41,027) (414,267) 342,360 574,768 1,936,436 198,212 2,134,648 Changes in Equity for 2014 : Currency translation differences (37,106) (37,106) (22,221) (59,327) Net changes in AFS investments, net of tax 41,149 41,149 41,149 Net gains on revaluation of property - - Other comprehensive income - - Profit for the period 164,015 164,015 29,864 193,879 Total Comprehensive Income - - 41,149 (37,106) - 164,015 168,058 7,643 175,701 Dividend relating to 2013 - (28,078) (28,078) Issued Share Capital - - Share options granted - - Reclassification of share option reserve - - Transfer and Reclassification - - Other equity transactions - - At 30 June 2014 1,409,001 65,601 122 (451,373) 342,360 738,783 2,104,494 177,776 2,282,270
  7. 7. 2014 2013 2011 2010 Closing 3.00 1.990 1.58 1.4532 Average 2.71 1.950 1.51 Unaudited Statement of Changes in Equity in GHC'000 Share Capital & Premium PPE Revaluation Surplus Available for Sale Fin. Assets reserves Currency Translation Reserve Other Reserves Retained Earnings Total equity and reserves attributable Non- Controlling Interests Total Equity At 31 December 2012/ 1 January 2013 2,188,878 93,225 1,146 85,443 373,336 1,038,834 3,780,862 316,102 4,096,964 Changes in Equity for 2013: Currency translation differences 428,168 428,168 60,958 489,126 Net changes in AFS investments, net of tax (79,336) (79,336) (79,336) Net gains on revaluation of property 3,854 3,854 3,854 Profit for the year 186,305 186,305 101,853 288,158 Total Comprehensive Income - 3,854 (79,336) 428,168 - 186,305 538,991 162,811 701,802 Dividend relating to 2012 (134,314) (134,314) (50,458) (184,772) Issued Share Capital - - Convertible loans - equity component 261 261 261 Reclassification of share option reserve - - Transfer and Reclassification 160,066 (160,066) - - Other equity transactions - - At 31 December 2013 / 1 January 2014 2,188,878 97,079 (78,190) 513,611 533,663 930,758 4,185,800 428,455 4,614,255 Changes in Equity for 2014 : Currency translation differences 1,574,091 1,574,091 100,311 1,674,402 Net changes in AFS investments, net of tax 111,707 111,707 111,707 Net gains on revaluation of property - - Other comprehensive income - - Profit for the period 445,252 445,252 81,072 526,323 Total Comprehensive Income - - 111,707 1,574,091 - 445,252 2,131,049 181,383 2,312,431 Dividend relating to 2013 - (76,225) (76,225) Issued Share Capital - - Reclassification of share option reserve - - Transfer and Reclassification - - Other equity transactions - - At 30 June 2014 2,188,878 97,079 33,517 2,087,702 533,663 1,376,010 6,316,849 533,612 6,850,461
  8. 8. DISCLOSURES 1. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). 2. The accounting policies applied in the preparation of these financial statements were consistent with those applied in the preparation of the annual consolidated financial statements of 31 December 2013. 3. Contingent liabilities in respect of bankers acceptance, guarantees, letters of credits and commitments to extend credit not provided for in the financial statements were US$ 6.4 billion (GHC 19.2 billion) (30 Jun 2013: US$ 4.1 billion (GHC 8.1 billion)) Cautionary Note Regarding Forward- Looking Statements Certain statements in this document are “forward-looking statements”. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements.

×