Ecobank reports US$312 million in profit before tax on Net revenue of US$1.1 billion for the six months ended 30 June 2015

Transcription

1 Ecobank reports US$312 million in profit before tax on Net revenue of US$1.1 billion for the six months ended 30 June Revenues largely flat at $1,073 million (up 21% to NGN 211 billion) - Profit before tax up 22% to $312 million (up 47 % to NGN 61 billion) - Profit after tax up 26% to $244 million (up 52% to NGN 48 billion) - Total assets down 0.4% to $23.3 billion (up 21% to NGN 4,609.3 billion) - Total equity up 15% to $2.6 billion (up 39% to NGN billion) Financial Highlights Period ended 30 June2015 Period ended 30 June 2014 Income Statement: US$'000 NGN'000 US$'000 NGN'000 US$ NGN Revenues 1,072, ,325,746 1,073, ,056, % 21% Profit before tax 311,730 61,414, ,390 41,664,750 22% 47% Profit for the period 244,242 48,118, ,879 31,629,743 26% 52% As at 30 June 2015 As at 30 June 2014 Statement of Financial Position: Total assets 23,347,595 4,609,282,205 23,431,737 3,818,201, % 21% Loans and advances to customers 11,757,150 2,321,096,553 12,383,702 2,017,924,241-5% 15% Due to customers 16,144,567 3,187,260,417 17,312,404 2,821,056,232-7% 13% Total equity 2,619, ,109,905 2,282, ,895,961 15% 39% Commenting on these results, Albert Essien, Group Chief Executive Officer said: Our results for the six months ended June 2015 reflected the strength of our balanced business model and pan-african strategy. We increased profit after tax by 26% to US$244 million and generated a return on average equity of 18.5% for our shareholders. Despite a difficult operating environment, we stayed committed to our customers households and businesses alike by focusing on providing them with the financial solutions they need. In the second quarter, loans and deposits grew gradually, following tepid growth in the first. We continued to drive cost efficiencies in our businesses and our cost-income ratio improved to 62.5% compared to 68.1% in the previous year. Essien concluded: Our balance sheet remained healthy, as evidenced by a capital adequacy ratio of 22.0%. Ecobank is well positioned to gain from resumption in economic activity in Africa and I am confident in the ability of our 19,000 plus employees to serve our clients with pride and excellence. Albert Essien Group Chief Executive Officer Laurence do Rego Group Executive,Finance 1

2 Unaudited Consolidated Statement of Comprehensive Income Period ended 30 June 2015 Period ended 30 June2014 US$'000 NGN'000 US$'000 NGN'000 US$ NGN US$'000 NGN'000 Gross Earnings 1,390, ,992,005 1,380, ,261,772 1% 22% 2,940, ,252,650 Interest Income 861, ,668, , ,395,837 4% 25% 1,731, ,105,254 Interest Expense (301,141) (59,328,290) (291,355) (47,532,140) 3% 25% (622,221) (103,524,004) Net Interest Income 560, ,339, ,573 87,863,697 4% 26% 1,109, ,581,251 Other Operating Income 512, ,986, ,460 87,192,695-4% 16% 1,170, ,741,498 Operating Expenses (670,612) (132,118,388) (730,732) (119,212,836) -8% 11% (1,491,134) (248,092,278) Impairment losses on financial assets (90,383) (17,806,505) (86,885) (14,174,564) 4% 26% (266,960) (44,416,351) Share of profit / (loss)of associates 69 13,594 (26) (4,242) -365% -420% (2,239) (372,521) Profit before tax 311,730 61,414, ,390 41,664,750 22% 47% 519,549 86,441,599 Taxation (65,053) (12,816,200) (60,278) (9,833,853) 8% 30% (122,024) (20,302,146) Profit for the period from continuing operations 246,677 48,598, ,112 31,830, ,525 66,139,453 Loss for the year from discontinued operations (2,435) (479,724) (1,233) (201,154) 97% 138% (2,755) (458,320) Year ended 31 December 2014 Profit for the period 244,242 48,118, ,879 31,629,743 26% 52% 394,770 65,681,133 Attributable to: Owners of the parent 217,286 42,807, ,015 26,757,680 32% 60% 337,863 56,213,128 - Continuing operations 218,601 43,066, ,681 26,866,303 33% 60% 339,351 56,460,621 - Discontinued operations (1,315) (259,051) (666) (108,623) 97% 138% (1,488) (247,493) Non-controlling interests 26,956 5,310,646 29,864 4,872,063-10% 9% 56,906 9,468,005 - Continuing operations 28,076 5,531,319 30,431 4,964,594-8% 11% 58,174 9,678,832 - Discontinued operations (1,120) (220,673) (567) (92,531) 97% 138% (1,267) (210,827) 244,242 48,118, ,879 31,629,743 26% 52% 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) % 23% Diluted (cents and kobo) % 39% 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) (0.01) (0.00) (0.01) (0.01) (1.32) Diluted (cents and kobo) (0.00) (0.01) (0.00) (0.00) (0.01) (1.21) Total comprehensive (loss)/ income for the period 2, , ,701 28,664,154-98% -98% (5,700) (948,320) Total comprehensive (loss)/ income attributable to: Owners of the parent 3, , ,637 24,248,894-98% -97% (41,001) (6,821,605) - Continuing operations 4, , ,303 24,357,517-97% -96% (39,513) (6,574,112) - Discontinued operations (1,315) (259,051) (666) (108,623) 97% 138% (1,488) (247,493) Non-controlling interests (782) (154,122) 27,064 4,415, % -103% 35,301 5,873,285 - Continuing operations ,551 27,631 4,507,791-99% -99% 36,568 6,084,112 - Discontinued operations (1,120) (220,673) (567) (92,531) 97% 138% (1,267) (210,827) 2, , ,701 28,664,154-98% -98% (5,700) (948,320) Unaudited Consolidated Statement of Financial Position As at 30 June 2015 As at 30 June 2014 As at December 2014 US$'000 NGN'000 US$'000 NGN'000 US$ NGN US$'000 NGN'000 Cash and balances with central banks 3,067, ,661,264 3,062, ,049,203 0% 21% 3,546, ,557,570 Financial assets held for trading 132,205 26,099, ,101 31,465,808-32% -17% 279,434 51,888,099 Derivative financial instruments 179,259 35,389, ,484 21,914,168 33% 61% 247,664 45,988,728 Loans & advances to banks 1,785, ,584,618 1,414, ,503,530 26% 53% 1,882, ,561,611 Loans & advances customers 11,757,150 2,321,096,553 12,383,702 2,017,924,241-5% 15% 12,311,642 2,286,148,803 Treasury bills and other eligible bills 1,138, ,786,360 1,163, ,558,106-2% 19% 1,276, ,962,723 Investment securities available for sale 1,784, ,364,890 1,625, ,946,760 10% 33% 1,435, ,572,850 Pledged assets 1,141, ,302, , ,948,461 16% 41% 1,032, ,659,191 Other assets 732, ,674, , ,209,905 9% 32% 486,318 90,304,389 Investment in associates 18,328 3,618,314 28,031 4,567,651-35% -21% 16,773 3,114,578 Intangible assets 391,549 77,299, ,926 81,299,992-22% -5% 410,257 76,180,622 Property, plant and equipment 857, ,295, , ,755,769-2% 19% 920, ,962,926 Investment properties 166,501 32,870, ,798 27,342,684-1% 20% 168,167 31,226,930 Deferred income tax assets 105,561 20,839, ,954 16,450,454 5% 27% 113,110 21,003,396 23,259,467 4,591,883,975 23,301,238 3,796,936,732 0% 21% 24,126,945 4,480,132,416 Assets held for sale 88,128 17,398, ,499 21,264,812-32% -18% 116,617 21,654,611 Total Assets 23,347,595 4,609,282,205 23,431,737 3,818,201,544 0% 21% 24,243,562 4,501,787,027 Deposits from banks 1,029, ,252,774 1,005, ,853,721 2% 24% 912, ,505,445 Deposits from customers 16,144,567 3,187,260,417 17,312,404 2,821,056,232-7% 13% 17,436,970 3,237,870,959 Other deposits 455,026 89,831, , ,613,369-32% -18% 573, ,456,077 Derivative financial instruments - - 1, , % -100% 20,478 3,802,560 Borrowed funds 1,646, ,011,954 1,060, ,862,574 55% 88% 1,540, ,011,579 Other liabilities 1,176, ,359, , ,940,550 45% 76% 801, ,843,949 Provisions 30,656 6,052,108 31,248 5,091,927-2% 19% 26,368 4,896,274 Current tax liabilities 57,995 11,449,373 53,734 8,755,955 8% 31% 69,061 12,823,937 Deferred income tax liabilities 58,236 11,496,951 39,380 6,417,020 48% 79% 65,405 12,145,054 Retirement benefit obligations 26,701 5,271,311 20,058 3,268,500 33% 61% 12,957 2,405,985 20,626,002 4,071,985,315 21,006,722 3,423,045,285-2% 19% 21,459,216 3,984,761,819 Liabilities held for sale 102,254 20,186, ,745 23,260,298-28% -13% 129,261 24,002,475 Total Liabilities 20,728,256 4,092,172,300 21,149,467 3,446,305,583-2% 19% 21,588,477 4,008,764,294 Net assets 2,619, ,109,905 2,282, ,895,961 15% 39% 2,655, ,022,733 Non controlling Interest 163,570 32,291, ,776 28,968,598-8% 11% 204,260 37,929,039 Attributable to owners of the company 2,455, ,817,916 2,104, ,927,363 17% 41% 2,450, ,093,694 Total Equity 2,619, ,109,905 2,282, ,895,961 15% 39% 2,655, ,022,733

3 Unaudited Consolidated Statement of Cash Flows Period ended 30 June 2015 Period ended 30 June 2014 US$'000 NGN'000 US$'000 NGN'000 US$ NGN Cash flows from operating activities Profit before tax 311,730 61,414, ,390 41,664,750 22% 47% Net trading income - foreign exchange (19,703) (3,881,730) (28,025) (4,572,023) -30% -15% Net loss from investment securities , % 4126% Impairment losses on loans and advances 76,411 15,053,858 87,668 14,302,304-13% 5% Impairment losses on other financial assets 13,972 2,752,647 (783) (127,740) -1884% -2255% Depreciation of property and equipment 42,704 8,413,186 51,676 8,430,509-17% 0% Net interest income (560,067) (110,339,733) (538,573) (87,863,697) 4% 26% Amortisation of software and other intangibles 11,719 2,308,780 14,249 2,324,606-18% -1% Profit on sale of property and equipment (354) (69,777) (848) (138,343) -58% -50% Share of loss of associates (69) (13,594) 26 4, % -420% Income taxes paid (80,540) (15,867,320) (70,362) (11,478,974) 14% 38% Changes in operating assets and liabilities Trading assets 147,229 29,065,949 (78,184) (12,740,083) -288% -328% Pledged assets (109,088) (21,536,153) 153,854 25,070, % -186% Derivative financial assets 68,405 13,504,515 6,862 1,118, % 1108% Increase in other treasury bills 137,500 27,145,250 (35,363) (5,762,401) -489% -571% Loans and advances to banks 7,175 1,416,540 (170,079) (27,714,353) -104% -105% Loans and advances to customers 568, ,230,074 (727,279) (118,510,123) -178% -195% Other assets (246,510) (48,666,004) (19,708) (3,211,419) 1151% 1415% Mandatory reserve deposits 379,185 74,858,714 (165,469) (26,963,097) -329% -378% Other deposits (118,274) (23,349,653) (5,279) (860,213) 2140% 2614% Due to customers (1,292,403) (255,146,200) 822, ,026, % -290% Derivative liabilities (20,478) (4,042,767) (316) (51,492) 6380% 7751% Other liabilities 375,344 74,100,333 (116,398) (18,967,054) -422% -491% Other provisions 4, ,974 2, ,994 59% 93% Interest received 861, ,668, , ,395,837 4% 25% Interest paid (301,141) (59,328,290) (291,355) (47,532,140) 3% 25% Net cashflow from/(used in) operating activities 257,000 50,591,441 (23,124) (3,708,884) -1211% -1464% Cash flows from investing activities Acquisition of subsidiaries (15,400) (3,040,268) (2,723) (443,713) 466% 585% Purchase of software (19,636) (3,876,636) (13,098) (2,134,319) 50% 82% Purchase of property and equipment (65,900) (13,010,019) (54,221) (8,835,312) 22% 47% Proceeds from sale and redemption of securities (349,269) (68,952,686) 267,550 43,597, % -258% Net cashflow (used in) / from investing activities (450,206) (88,879,609) 197,508 32,183, % -376% Cash flows from financing activities Proceeds from/ (repayment) of borrowed funds 106,033 20,933,081 (242,573) (39,527,270) -144% -153% Dividends paid to non-controlling (28,858) (5,697,225) (28,078) (4,575,310) 3% 25% Net cash from/ (used) in financing activities 77,175 15,235,856 (270,651) (44,102,580) -129% -135% Net (decrease) in cash and cash equivalents (116,031) (23,052,312) (96,267) (15,627,535) 21% 48% Cash and cash equivalents at start of year 2,373, ,659,156 1,641, ,269,447 45% 68% Effects of exchange differences on cash and cash equivalents (38,821) 20,317,727 (390,910) (58,504,405) -90% -135% Cash and cash equivalents at end of period 2,218, ,924,571 1,154, ,137,507 92% 133% CORPORATE ACTION Proposed Bonus - - Proposed Dividend - - Closure Date - - Date of Payment - - AGM Date - - AGM Venue - - Dividend per Share - -

4 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 (219,073) (219,073) (28,858) (247,931) Net changes in AFS investments, net of tax 6,467 6,467 6,467 Net gains on revaluation of property - - Post-employment benefit obligations - - Profit for the period 217, ,286 26, ,242 Total Comprehensive Income - - 6,467 (219,073) - 217,286 4,680 (1,902) 2,777 Issued Share Capital Share option reserve exercised 185 (185) - - Dividend relating to (38,788) (38,788) At 30 June ,979, ,599 (73,965) (1,044,002) 688, ,966 2,455, ,570 2,619,339

5 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 (14,409,816) (14,409,816) (3,290,170) (17,699,986) Net changes in AFS investments, net of tax 1,274,042 1,274,042 1,274,042 Profit for the period 42,807,877 42,807,877 5,310,646 48,118,523 Total Comprehensive Income - - 1,274,042 (14,409,816) - 42,807,877 29,672,103 2,020,476 31,692,580 Issued Share Capital 52,119 52,119 52,119 Share option reserve exercised 36,523 (36,523) - - Dividend relating to (7,657,527) (7,657,527) At 30 June ,071,789 21,960,777 (12,018,864) (82,834,519) 115,035, ,603, ,817,916 32,291, ,109,905

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$ 5.1 billion (NGN 1,011.7 billion) (30 June 2014: US$ 6.4 billion (NGN 1,040.7 billion))