Ecobank closes H1 2019 with $164.75 mln net result, 2% down YoY

Banking

Tuesday, 03 September 2019 16:00

Ecobank closes H1 2019 with $164.75 mln net result, 2% down YoY

(Togo First) - Ecobank Transnational Incorporated (ETI), the Lomé-based pan-African banking group closes the first half this year with a net result of $164.75 million. Compared to the same period last year when the net result was $168.54 million, this makes a 2% decline.

However, with regard to the fluctuations of the US dollar to XOF rate, this makes a slight increase to XOF95.66 billion from XOF94.67 billion at the end of June 2018. Although Ecobank managed to cut risk costs (-57% YoY) and operating expenses (-9% YoY), this was not enough to make up the decline in its net banking income (which fell by 14.8%) and fee and commission income (-7%) compared to the end of June 2018.

According to the group’s CEO, Ade Ayeyemi, the poor performances are the result of a tough economic environment. The bank’s top management, which has chosen not to pay dividends in the last two years, stressed the “challenges to be met in terms of regulation, activity and the macroeconomic environment.”

Also, things are not getting better for this banking giant present in 36 African countries. The group suffered recent shocks on the regional markets, particularly in Accra and Lagos. And in this scenario, the International Finance Corporation transferred the share it held in the bank to investment and development company Arise BV.

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REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.