Ecobank Group reports Profit before tax of US$398 million on Net revenue of US$1.6 billion for the nine months ended 30 September 2015

Transcription

1 Ecobank Group reports Profit before tax of US$398 million on Net revenue of US$1.6 billion for the nine months ended - Revenue down 3% $1,598 million (up 17% to NGN 316 billion) - Profit before tax down 2% to $398 million (up 18 % to NGN 79 billion) - Profit after tax down 5% to $306 million (up 15% to NGN 60 billion) - Total assets down 0.2% to $23.4 billion (up 21% to NGN 4,650.6 billion) - Total equity up 10% to $2.7 billion (up 34% to NGN billion) Financial Highlights Income Statement: US$'000 NGN'000 US$'000 NGN'000 US$ NGN Revenue 1,597, ,833,816 1,650, ,951,223-3% 17% Profit before tax 397,995 78,665, ,045 66,497,733-2% 18% Profit for the period 305,669 60,416, ,099 52,491,400-5% 15% Financial Highlights Statement of Financial Position: US$'000 NGN'000 US$'000 NGN'000 US$ NGN Total assets 23,369,804 4,650,590,996 23,422,042 3,837,701, % 21% Loans and advances to customers 11,543,704 2,297,197,096 12,058,429 1,975,773,592-4% 16% Deposits from customers 16,085,912 3,201,096,488 16,837,695 2,758,856,326-4% 16% Total equity 2,654, ,178,039 2,406, ,284,772 10% 34% Ade Ayeyemi, Group CEO of the Ecobank Group commented on the financial results: The operating environment in Middle Africa was challenging during the period. While our financial results were impacted by various factors, the strength of our diversified pan-african business model ensured a balanced outcome. We reported US$398 million in pre-tax profits, down 2% from a year ago, largely due to adverse currency movements and operational and impairment losses in the third quarter. We see looming headwinds ahead and as a result expect reported 2015 profits to come in lower than expected, but relatively flat in constant dollars. We had decent loan growth in our Corporate Bank business. And despite a decrease in Domestic Bank deposits, we increased the share of stable deposits within the deposit mix. With revenue growth challenged in the current environment, we would focus more on cost efficiency and invest in key initiatives in our Transaction banking, Cards, and ebanking businesses. Also, we are simplifying our operating model to better serve our customers and position the company for long term success. Ayeyemi concluded: We closed the period with healthy capital levels with a Tier 1 Capital ratio of 20.6% and Total Capital Adequacy ratio of 22.8% under Basel I. Our 19,000 plus employees, whom I am proud of, have been supportive of our customers Ade Ayeyemi Laurence do Rego Group Chief Executive Officer Group Executive, Finance 1

2 Unaudited Consolidated Statement of Comprehensive Income Sep Sep dec Closing rate Average rate Year ended 31 December 2014 US$'000 NGN'000 US$'000 NGN'000 US$ NGN US$'000 NGN'000 Gross Earnings 2,083, ,833,393 2,139, ,727,970-3% 18% 2,940, ,252,650 Interest Income 1,298, ,722,685 1,274, ,745,018 2% 24% 1,731, ,105,254 Interest Expense (461,017) (91,122,059) (463,938) (75,606,429) -1% 21% (622,221) (103,524,004) Net Interest Income 837, ,600, , ,138,588 3% 25% 1,109, ,581,251 Other Operating Income 760, ,233, , ,812,635-9% 10% 1,170, ,741,498 Operating Expenses (1,024,995) (202,594,817) (1,098,626) (179,039,417) -7% 13% (1,491,133) (248,092,278) Impairment losses on financial assets (175,427) (34,673,926) (143,660) (23,411,791) 22% 48% (266,960) (44,416,351) Share of profit / (loss)of associates ,408 (14) (2,282) -3729% -4500% (2,239) (372,521) Profit before tax 397,995 78,665, ,045 66,497,733-2% 18% 519,549 86,441,599 Taxation (91,235) (18,033,003) (83,589) (13,622,221) 9% 32% (122,024) (20,302,146) Profit for the period from continuing operations 306,760 60,632, ,456 52,875, ,525 66,139,453 Loss for the year from discontinued operations (1,091) (215,642) (2,357) (384,112) -54% -44% (2,755) (458,320) Profit for the period 305,669 60,416, ,099 52,491,400-5% 15% 394,770 65,681,133 Attributable to: Owners of the parent 265,150 52,408, ,429 45,211,679-4% 16% 337,863 56,213,128 - Continuing operations 265,739 52,524, ,702 45,419,100-5% 16% 339,351 56,460,621 - Discontinued operations (589) (116,446) (1,273) (207,421) -54% -44% (1,488) (247,493) Non-controlling interests 40,519 8,008,760 44,670 7,279,721-9% 10% 56,906 9,468,005 - Continuing operations 41,021 8,107,955 45,754 7,456,413-10% 9% 58,174 9,678,832 - Discontinued operations (502) (99,195) (1,084) (176,692) -54% -44% (1,267) (210,827) 305,669 60,416, ,099 52,491,400-5% 15% 394,770 65,681,133 Earnings per share for the profit from continuing operations attributable to owners of the parent during the year (expressed in United States cents per share): Basis (cents and kobo) % -8% Diluted (cents and kobo) % 0% Earnings per share for the profit from discontinued operations attributable to owners of the parent during the year (expressed in United States cents per share): Basis (cents and kobo) (0.00) (0.49) (0.01) (1.71) (0.01) (1.32) Diluted (cents and kobo) (0.00) (0.01) (0.01) (2.25) (0.01) (1.21) Total comprehensive income/(loss) for the period 33,978 6,715, ,627 36,606,347-85% -82% (5,700) (948,320) Total comprehensive income/(loss) attributable to: Owners of the parent 18,285 3,614, ,474 31,529,591-91% -89% (41,001) (6,821,605) - Continuing operations 18,875 3,730, ,747 31,737,010-90% -88% (39,513) (6,574,112) - Discontinued operations (589) (116,446) (1,273) (207,419) -54% -44% (1,488) (247,493) Non-controlling interests 15,693 3,101,763 31,153 5,076,756-50% -39% 35,301 5,873,285 - Continuing operations 16,195 3,200,958 32,237 5,253,447-50% -39% 36,568 6,084,112 - Discontinued operations (502) (99,195) (1,084) (176,691) -54% -44% (1,267) (210,827) 33,978 6,715, ,627 36,606,347-85% -82% (5,700) (948,320) Unaudited Consolidated Statement of Financial Position 31 December 2014 US$'000 NGN'000 US$'000 NGN'000 US$ NGN US$'000 NGN'000 Cash and balances with central banks 3,122, ,415,310 3,022, ,283,978 3% 25% 3,546, ,557,570 Financial assets held for trading 205,064 40,807, ,906 39,963,998-16% 2% 279,434 51,888,099 Derivative financial instruments 140,131 27,886, ,671 23,048, % 21% 247,664 45,988,728 Loans & advances to banks 1,408, ,350,404 1,606, ,259,761-12% 6% 1,882, ,561,611 Loans & advances customers 11,543,704 2,297,197,096 12,058,429 1,975,773,592-4% 16% 12,311,642 2,286,148,803 Treasury bills and other eligible bills 1,171, ,179, , ,923,592 23% 50% 1,276, ,962,723 Investment securities available for sale 2,179, ,681,894 2,023, ,613,393 8% 31% 1,435, ,572,850 Pledged assets 1,101, ,277, , ,326,945 19% 45% 1,032, ,659,191 Other assets 837, ,635, , ,597,743 23% 49% 486,318 90,304,389 Investment in associates 17,974 3,576,826 27,205 4,457,539-34% -20% 16,773 3,114,578 Intangible assets 387,213 77,055, ,549 78,901,804-20% -2% 410,257 76,180,622 Property, plant and equipment 881, ,478, , ,937,193 2% 24% 920, ,962,926 Investment properties 166,545 33,142, ,338 27,418, % 21% 168,167 31,226,930 Deferred income tax assets 107,237 21,340, ,324 17,585, % 21% 113,110 21,003,396 23,271,476 4,631,023,724 23,302,361 3,818,091, % 21% 24,126,945 4,480,132,416 Assets held for sale 98,328 19,567, ,681 19,609,733-18% 0% 116,617 21,654,611 Total Assets 23,369,804 4,650,590,996 23,422,042 3,837,701, % 21% 24,243,562 4,501,787,027 Deposits from banks 1,139, ,779, , ,590,860 27% 55% 912, ,505,445 Deposits from customers 16,085,912 3,201,096,488 16,837,695 2,758,856,326-4% 16% 17,436,970 3,237,870,959 Other deposits 402,242 80,046, ,216 79,338,792-17% 1% 573, ,456,077 Derivative financial instruments - - 6,162 1,009,644 n/a n/a 20,478 3,802,560 Borrowed funds 1,516, ,695,940 1,647, ,932,389-8% 12% 1,540, ,011,579 Other liabilities 1,262, ,200, , ,202,611 48% 79% 801, ,843,949 Provisions 43,216 8,599,984 28,286 4,634,726 53% 86% 26,368 4,896,274 Current tax liabilities 70,439 14,017,361 66,653 10,921,094 6% 28% 69,061 12,823,937 Deferred income tax liabilities 56,913 11,325,687 42,042 6,888,631 35% 64% 65,405 12,145,054 Retirement benefit obligations 27,802 5,532,598 20,803 3,408,621 34% 62% 12,957 2,405,985 20,604,493 4,100,294,107 20,883,636 3,421,783,694-1% 20% 21,459,216 3,984,761,819 Liabilities held for sale 111,150 22,118, ,030 21,633,116-16% 2% 129,261 24,002,475 Total Liabilities 20,715,643 4,122,412,957 21,015,666 3,443,416,810-1% 20% 21,588,477 4,008,764,294 Net assets 2,654, ,178,039 2,406, ,284,772 10% 34% 2,655, ,022,733 Non controlling Interest 180,663 35,951, ,644 30,253,918-2% 19% 204,260 37,929,039 Attributable to owners of the company 2,473, ,226,102 2,221, ,030,854 11% 35% 2,450, ,093,694 Total Equity 2,654, ,178,039 2,406, ,284,772 10% 34% 2,655, ,022, (0) -

3 Unaudited Consolidated Statement of Cash Flows US$'000 NGN'000 US$'000 NGN'000 US$ NGN Cash flows from operating activities Profit before tax 397,995 78,665, ,045 66,497,734-2% 18% Net trading income - foreign exchange (33,891) (6,698,661) (29,757) (4,849,423) 14% 38% Net loss from investment securities 2, , , % 14820% Impairment losses on loans and advances 149,707 29,590, ,570 22,908,224 6% 29% Impairment losses on other financial assets 25,720 5,083,672 3, , % 910% Depreciation of property and equipment 64,346 12,718,273 77,113 12,566,849-17% 1% Net interest income (837,829) (165,600,626) (810,832) (132,138,588) 3% 25% Amortisation of software and other intangibles 17,477 3,454,407 21,151 3,446,908-17% 0.2% Profit on sale of property and equipment ,934 (704) (114,750) -214% -239% Share of loss of associates (508) (100,408) 14 2, % -4500% Income taxes paid (98,450) (19,459,080) (93,442) (15,227,931) 5% 28% Changes in operating assets and liabilities Trading assets 74,370 14,799,630 (128,989) (21,020,907) -158% -170% Pledged assets (69,749) (13,880,051) 211,864 34,526, % -140% Derivative financial assets 107,533 21,399, , % 19353% Increase in other treasury bills 104,365 20,768, ,303 28,731,512-41% -28% Loans and advances to banks 188,973 37,605,556 (261,043) (42,541,295) -172% -188% Loans and advances to customers 715, ,391,796 (432,833) (70,537,407) -265% -302% Other assets (351,047) (69,858,353) 8,816 1,436, % -4962% Mandatory reserve deposits 367,180 73,068,766 (76,242) (12,424,829) -582% -688% Other deposits (171,058) (34,040,542) (193,744) (31,573,814) -12% 8% Due to customers (1,351,058) (268,860,542) 347,791 56,678, % -574% Derivative liabilities (20,478) (4,075,122) 4, , % -631% Other liabilities 460,744 91,687,976 (70,421) (11,476,276) -754% -899% Other provisions 16,848 3,352,752 (225) (36,668) -7588% -9244% Interest received 1,298, ,722,685 1,274, ,745,083 2% 24% Interest paid (461,017) (91,122,059) (463,938) (75,606,429) -1% 21% Net cashflow from operating activities 597, ,210, ,758 18,375, % 543% Cash flows from investing activities Acquisition of subsidiaries (2,723) (443,758) -100% -100% Purchase of software (19,325) (3,845,702) (5,606) (913,591) 245% 321% Purchase of property and equipment (101,594) (20,217,122) (93,254) (15,197,294) 9% 33% Proceeds from sale and redemption of securities (743,726) (148,001,474) (130,395) (21,250,034) 470% 596% Net cashflow used in investing activities (864,645) (172,064,298) (231,978) (37,804,677) 273% 355% Cash flows from financing activities Proceeds from/ (repayment) of borrowed funds (24,204) (4,816,550) 344,031 56,065, % -109% Dividends paid to non-controlling (25,328) (5,040,272) (28,078) (4,575,778) -10% 10% Net cash (used in)/ from financing activities (49,532) (9,856,822) 315,953 51,489, % -119% Net (decrease) / increase in cash and cash equivalents (316,604) (63,711,073) 196,733 32,060, % -299% Cash and cash equivalents at start of year 2,373, ,659,156 1,641, ,269,478 45% 68% Effects of exchange differences on cash and cash equivalents (231,994) (13,874,045) (383,293) (57,183,170) -39% -76% Cash and cash equivalents at end of period 1,824, ,074,038 1,455, ,147,287 25% 53% CORPORATE ACTION Proposed Bonus - - Proposed Dividend - - Closure Date - - Date of Payment - - AGM Date - - AGM Venue - - Dividend per Share - -

4 Closing rate Average rate Unaudited Statement of Changes in Equity in US$'000 Share Capital PPE Revaluation Surplus Available for Sale Fin. Assets reserves Currency Translation Reserve Other Reserves Retained Earnings Total equity and reserves attributable Non-Controlling Interest Total Equity At 1 January ,409,001 65,601 (41,027) (412,781) 340, ,768 1,936, ,212 2,134,648 Changes in Equity for 2014: Currency translation differences (412,148) (412,148) (21,606) (433,754) Net changes in AFS investments, net of tax (39,405) (39,405) (39,405) Net gains on revaluation of property 71,998 71,998 71,998 Post-employment benefit obligations Profit for the year 337, ,863 56, ,770 Total Comprehensive Income - 71,998 (39,405) (412,148) ,863 (41,001) 35,301 (5,700) Dividend relating to (29,252) (29,252) Issued Share Capital 208, , ,375 Treasury shares 1,932-1,932 1,932 Reclassification of share option reserve (1,066) 1, Share option exercised Transfer and Reclassification 363,017 (363,017) - - Convertible loans - equity component 360,180 (15,132) 345, ,048 At 31 December 2014 / 1 January ,979, ,599 (80,432) (824,929) 688, ,680 2,450, ,260 2,655,085 Changes in Equity for 2015 : Currency translation differences (254,452) (254,452) (25,328) (279,780) Net changes in AFS investments, net of tax 8,089 8,089 8,089 Net gains on revaluation of property - - Post-employment benefit obligations - - Profit for the period 265, ,150 40, ,669 Total Comprehensive Income - - 8,089 (254,452) - 265,150 18,787 15,191 33,978 Issued Share Capital 41,541 (37,656) 3,885 3,885 Share option reserve exercised 185 (185) - - Dividend relating to (38,788) (38,788) At 2,021, ,599 (72,343) (1,079,381) 688, ,174 2,473, ,663 2,654,161

5 Closing rate Average rate Unaudited Statement of Changes in Equity in LCY'000 Share Capital PPE Revaluation Surplus Available for Sale Fin. Assets reserves Currency Translation Reserve Other Reserves Retained Earnings Total equity and reserves attributable Non-Controlling Interest Total Equity At 1 January ,042,905 9,981,861 (6,736,769) (49,291,525) 50,556,298 88,792, ,345,651 31,664, ,010,018 Changes in Equity for 2014: Currency translation differences (19,133,178) (19,133,178) 2,228,442 (16,904,736) Net changes in AFS investments, net of tax (6,556,137) (6,556,137) (6,556,137) Net gains on revaluation of property 11,978,916 11,978,916 11,978,916 Post-employment benefit obligations 114, , ,999 Profit for the year 56,213,062 56,213,062 9,468,090 65,681,152 Total Comprehensive Income - 11,978,916 (6,556,137) (19,133,178) 114,999 56,213,062 42,617,662 11,696,532 54,314,194 Dividend relating to (5,431,860) (5,431,860) Issued Share Capital 38,693,280 38,693,280-38,693,280 Treasury shares 358, , ,825 Reclassification of share option reserve (197,946) 197, Share option exercised 6,313-6,313 6,313 Transfer and Reclassification 67,408,710 (67,408,710) - - Convertible loans - equity component 66,881,824 (2,809,861) 64,071,963 64,071,963 At 31 December 2014 / 1 January ,983,148 21,960,777 (13,292,906) (68,424,703) 115,072,199 77,795, ,093,694 37,929, ,022,733 Changes in Equity for 2015 : Currency translation differences (17,647,657) (17,647,657) (2,267,025) (19,914,682) Net changes in AFS investments, net of tax 1,598,874 1,598,874 1,598,874 Profit for the period 52,408,076 52,408,076 8,008,760 60,416,836 Total Comprehensive Income - - 1,598,874 (17,647,657) - 52,408,076 36,359,293 5,741,735 42,101,028 Issued Share Capital 8,266,659 (7,493,544) 773, ,115 Share option reserve exercised 36,815 (36,815) - - Dividend relating to (7,718,837) (7,718,837) At 330,286,622 21,960,777 (11,694,032) (86,072,360) 115,035, ,709, ,226,102 35,951, ,178,039

6 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 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$ 4.9 billion (NGN billion) (: US$ 5.1 billion (NGN billion)) 4. The financial statements do not contain untrue statements, misleading facts or omit material facts to the best of our knowledge.