Compared to H1 2017, Ecobank’s profit rose by 37% last semester, however…

Banking

Friday, 24 August 2018 15:14

Compared to H1 2017, Ecobank’s profit rose by 37% last semester, however…

(Togo First) - During H1 2018 which ended June 30, Ecobank Transnational Incorporated (ETI) recorded a net result of $168.5 million, up 37% compared to the same period in 2017.

According to the CEO of the Lomé-based Pan-African group, Ade Ayeyemi, pre-tax profit also rose by 41% last semester, standing at $213 million.

Similarly, the group’s treasury grew by about $341.03 million. This is good news, even if its pre-provision operating profit (PPOP) slumped 3% over the period reviewed; especially considering actual tensions between emerging markets, attributed mostly to the trade war going on between China and US. Actually, the treasury’s surge prevented Ecobank from issuing Eurobonds to fund its activities as it had planned.

Other improvements were recorded in services segments, distinct from corporate and investment banking. The group’s holding, eProcess, investment and assets management divisions, and its Paris subsidiary recorded a pre-tax profit of $112.3 million.

However, the group’s trading operations fared poorly, slumping 17% to $192.4 million (as compared to $232.6 million in H1 2017). This greatly affected operating profit, despite fee-commission income and interest income on customer loans rising 11% and 3% respectively.

Assessing these results, analysts from Ecofin Agency said they did not take into account some variables that will impact the group’s full year results. These include an exchange difference on translation of foreign operations of $74.4 million, and a potential loss of $31 million on investment securities. Taking these variables into account, Ecobank would end up with a consolidated profit of $63mln for the recent semester, down by 77% compared to $274.3 million during the same period in 2017

Fiacre E. Kakpo

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.