Ecobank Uganda, the Ugandan unit of the Ecobank Group has today published its 2022 results, reporting a marked double-digit turnaround on nearly all its key fundamentals.
The bank also reported a return to profitability.
In results released today, the bank reported that deposits grew 17% from UGX377.3 billion to UGX443.9 billion, a growth of UGX66.6 billion. This allowed the bank to grow its lending⏤ by 74.8% from UGX83.4 billion last year, to UGX145.8 billion. Growth in lending and interest income led total income to grow by 8.3% from UGX53.3 billion to UGX57.7 billion.
Rising income, coupled with a reduction in expenditure⏤ the bank reduced expenditure from UGX61.3 billion in 2021 to UGX53.1 billion⏤ drove pre-tax profit growth, by 157% to UGX4.6 billion, a significant turnaround from the UGX8.1 loss in 2021.
After paying a corporation tax of UGX4.2 billion, the bank reported a net profit of UGX401.6 million, an equivalent of 103.6% growth from the UGX11 billion net loss reported in 2021.
The last time the bank made a profit was in 2019- when it made UGX4.1 billion in profit. In 2020 and 2021 it made UGX6 billion and UGX11 billion in losses, respectively.
Subsequently, the bank’s assets grew 17.9% from UGX495 billion to UGX583 billion.
These are Grace Muliisa’s first full-year results since she joined the bank in September 2021. From the time she joined the bank, she has led a massive restructuring of the bank’s operations and people, especially at the senior management and middle management level.
Renewed commitment to customers and enhanced value-proposition
Commenting about the results, Grace Muliisa, the bank’s Managing Director, said that despite a challenging operating environment marred with high inflation, weakening African currencies, and slower economic growth, the bank’s “investments in technology, digital capabilities and improved risk management models, drove cost efficiency, value for money and reduced our cost-to-serve, resulting in a 13% drop in costs”.
New ICT Innovation Hub at Muni University set to benefit West Nile entrepreneurs“Coupled with revenue growth, we achieved a better cost-to-income ratio of 92% in 2022 down from 115% in 2021,” she said.
“These results demonstrate our renewed commitment to our customers and enhanced value propositions to support our customer needs. Our strategy focused on customer-centricity, digitisation, and partnering to scale which was anchored by our business segments⏤ Consumer Banking (CSB) and Commercial Banking (CMB), demonstrated through our diversified customer value propositions to serve our retail, Small Medium Enterprises (SMEs) and corporate customers with tailor-made solutions,” she added.
She said the bank would continue to invest and transform its digital platforms with unique offerings like cardless withdrawals, business payment systems and integrations and self-service mobile app features.
She said the bank, moving forward would continue to leverage the strengths of the entire Ecobank Group that “allows the bank to provide customer solutions across the continent, giving our customers access to subject matter experts in banking and banking products in at least 35 African countries which supports our strength in trade”.
“We will also continue to innovate and create value for our customers because a pleasant customer experience remains at the heart of our strategy and our customers’ experience defines our existence. We remain committed to providing relevant solutions through digitisation, and partnerships. Our human capital is our service delivery engine for which we pride in and will continue to empower,” she said.
Grace also said the bank in 2022, over and above growing its credit portfolio and supporting businesses with vital credit, also donated USD120,000 to the #ZeroMalariaUG initiative, as well as trained over 2,000 women-led businesses through the Ellevate Program, equipping them with “skills to sustain and grow their businesses with free digital tools”.
The bank also trained and equipped over 300 youths with financial literacy skills in partnership with YMCA.
In an earlier interview with CEO East Africa Magazine, months into her appointment, she said her major focus in the first year, would be to restructure the bank, so as to “better align it to the market needs for a better, faster and more consistent customer banking experience”.
Ecobank celebrates 15 years in Uganda this year.