ECOBANK GROUP REPORTS PROFIT BEFORE TAX OF $205 MILLION ON REVENUE OF $2.1 BILLION FOR THE YEAR ENDED 31 DECEMBER 2015

Transcription

1 NEWS RELEASE ECOBANK GROUP REPORTS PROFIT BEFORE TAX OF $205 MILLION ON REVENUE OF $2.1 BILLION FOR THE YEAR ENDED 31 DECEMBER 2015 Lome, 13 April 2016 The Ecobank Group today reported profit before tax of $205 million on revenue of $2.1 billion for the year ended 31 December This compared to $520 million and $2.3 billion for 2014 respectively. Financial highlights: (year-on-year) o Attributable profit to ETI shareholders of $66 million o ETI board proposed cash dividend of 0.2 US cents per ordinary share for year ended 2015 ($48.2 million in total) o Diluted earnings per share of 0.28 US cents compared to US cents in 2014 o Profit before tax and impairment losses 2 of $738 million, down 6% ( up 10% in constant dollars to $871 million) o o Profit before tax of $205 million, down 60% (down 50% in constant dollars to $258 million) Revenue of $2.1 billion, down 8% (up 9% in constant dollars to $2.5 billion) o Cost-income ratio of 64.9% (65.4% in 2014) o Return on average total assets (ROAA) of 0.4% and return on average equity (ROAE) of 4.2% o o Net customer loans of $11.2 billion, down $1.1 billion, or 9%, (up 1% in constant dollars to $12.5 billion) Customer deposits of $16.4 billion, down $1.0 billion, or 6%, (up 5% in constant dollars to $18.3 billion) o Basel I Tier 1 capital ratio of 20.5% and total capital adequacy ratio (CAR) of 23.9% Group CEO Ade Ayeyemi said: Our 2015 results were disappointing. We did a comprehensive review of our processes and portfolio leading to elevated impairment charges in the fourth quarter. Impairment losses were significantly increased by $265 million to $532 million. This was unacceptable to us, and we have taken drastic steps to address asset quality and strengthen our processes. Also, we were faced with a difficult operating environment due to the slowdown in economic growth across Africa, as a result of lower commodity prices. These developments affected both households and businesses. Our cost-income ratio was 64.9%, flat compared to prior year. Mr. Ayeyemi concluded: Our diversified business model is a source of competitive strength and stability. In the last few months, management and I, have worked to revise our strategy and operating model around our customers, our products, and our geographical footprint. We have made some management changes and developed a strategic plan aimed at ensuring we generate sustainable long-term performance. 1 Earnings per share for 2014 has been adjusted to reflect the 1-for-15 bonus issue of July 2015 as required by International Accounting Standard 33 Earnings per share (IAS 33) 2 Profit before tax and impairment losses is net revenue less operating expenses. This is a useful financial measure that allows an evaluation of the Company s ability to generate capital to cover impairment losses.

2 ECOBANK GROUP FINANCIAL PERFORMANCE SUMMARY Selected Financial Information Net interest income 1,146 1,109 3% 1,377 Non-interest revenue 960 1,170 (18%) 1,106 Net revenue 2,106 2,280 (8%) 2,483 Operating expenses 1,368 1,491 (8%) 1,603 Profit before tax and impairment losses (6%) 880 Impairment losses % 613 Profit before tax (60%) 258 Profit after tax (73%) 136 Basic EPS (US cents) (83%) Diluted EPS (US cents) (82%) Basel I Tier 1 capital ratio 20.5% 18.3% Total capital adequacy ratio (CAR) 23.9% 20.4% Return on average total assets (ROAA) 1 0.4% 1.7% Retun on average total equity (ROAE) 2 4.2% 16.5% Net interest margin (NIM) 7.8% 6.8% Cost-income ratio (CIR) 64.9% 65.4% N o te : Selected income statement lines only and totals may not sum up. (1) ROAa calculated as the Group's profit for the year divided by average end-of-period total assets (2) ROAE calcuated as the Group's profit for the year divided by average end-of-period total equity Profit after tax was $107 million, a decrease of $287 million, or 73%, from the prior year. Profit attributable to owners of ETI was $66 million, a decrease of $272 million, or 81%. In constant dollars, profit after tax was $136 million, down 66%, primarily driven by higher impairments. Net revenue was $2.1 billion, a decrease of $174 million, or 8%, from the prior year. Revenues were impacted by the significant depreciation of the Naira, CFA franc and Cedi, which together accounts for more than 85% of Group-wide revenues, against the US dollar. In constant dollars, revenue increased 9% to $2.5 billion. Net interest income was $1.1 billion, increasing $36 million, or 3%, reflecting growth in investment securities and lower average yield on interest-bearing liabilities. In constant dollars, net interest income increased 24% to $1.4 billion. Non-interest revenue was $960 million, a decrease of $210 million, or 18%. In constant dollars, non-interest revenue decreased by 5% to 1.1 billion. Operating expenses were $1.4 billion, a decrease of $124 million, or 8%. In constant dollars, operating expenses increased 8% to $1.6 billion. Staff expenses were down $58 million, professional fees by $21 million, insurance by $8.4 million, and by $7.3 million in rent and utilities. Impairment losses were $532 million, an increase of $265 million, or 99%, from the prior year. The increase in impairment losses was due to a comprehensive review of our portfolio and processes across the Group, during the fourth quarter of the year. Net impairment losses for loans and advances were $427 million, up $198 million, or 86%. Impairment losses on other financial assets increased $67 million, or 179%, to $105 million. The annualised cost-of-risk was 3.48% compared with 1.86% in the prior year. Ecobank Group s Full Year 2015 Earnings Release Page 2

3 Selected Balance Sheet Information 31 Dec 30 Sept 31 Dec Period As At: (in billions of USD) Gross loans Less: allow ance for impairments Net loans Customer deposits Total assets Shareholders' equity Total equity Risk w eighted assets (RWA) Loans-to-deposits ratio 72.2% 74.5% 72.8% Customer loans (net) were $11.2 billion at 31 December 2015, compared to $11.5 billion, and $12.3 billion, at 30 September 2015 and 31 December 2014, respectively. Loans were down primarily due to adverse currency movements and a deliberate strategy to reduce lending in the current market environment. In constant dollars, loans were up 1% to $12.5 billion. Customer deposits were $16.4 billion at 31 December 2015, a decrease of $1.0 billion, or 6%, from December In constant dollars, deposits increased by 5% to $18.3 billion. Capital levels remained healthy, with Tier 1 Capital under Basel I of $3.1 billion. The increase in Tier 1 capital was driven by the conversion of preference shares into ordinary shares and the contribution of current year profits. Tier 1 Capital ratio was 20.5% and Total Capital Adequacy ratio was 23.9%, compared to 18.3% and 20.4%, respectively in December Risk-weighted assets (RWA) decreased $1.4 billion, or 9%, from the prior year, driven by lower loan balances due to our strategy of cautious and selective lending. Asset Quality In millions of USD Year ended 9 mths to Year ended 31 Dec 30 Sept 31 Dec For the period ended: Impairment losses on loans & advances Impairment losses on other assets Impairment losses Cost-of-risk 3.48% 1.62% 1.86% 31 Dec 30 Sept 31 Dec As at: Non-performing loans (NPLs) Allow ance for impairment losses NPL ratio 8.2% 5.0% 4.4% NPL coverage ratio 67.9% 72.7% 68.7% Note: totals may not add up due to rounding Net impairment losses on loans were $427 million compared to $229 million in the prior year. Impairment losses on loans for the fourth quarter were $277 million compared to $89 million in the prior year. The increase in the fourth quarter s impairments from the preceding quarter, primarily was due to a comprehensive review of our portfolio and processes across the Group. Net impairment losses were 3.48% of average gross loans for 2015 compared with 1.86% in Non-performing loans were $967 million, up $407 million, or 73%, from the prior year. The ratio of non-performing loans to total loans was 8.2%, up 370 basis points from the prior year. The non-performing loans coverage ratio was 67.9% compared with 68.7% in December Ecobank Group s Full Year 2015 Earnings Release Page 3

4 GEOGRAPHICAL CLUSTER 3 FINANCIAL PERFORMANCE Ecobank s operations in Africa are grouped into six geographical clusters according to size and shared attributes such as a common currency or membership of a regional economic community. The six geographical clusters are: Francophone West Africa, Nigeria, Rest of West Africa, Central Africa, East Africa and Southern Africa. The Group also shows results for its International business (comprising its Paris subsidiary and its representative office in London) and Ecobank Development Corporation, the Group s Investment Banking and Securities and Asset Management businesses. The amounts in the tables below have not been adjusted for consolidation eliminations, and do not include eprocess (the Group s shared services centre subsidiary) or parent company ETI. NIGERIA Net revenue (11%) 1,042 Operating expenses (10%) 629 Profit before tax and impairment losses (13%) 413 Impairment losses % 344 Profit after tax (74%) 68 Customer loans (net) 4,101 4,808 (15%) 4,402 Total assets 9,189 9,673 (5%) 9,862 Customer deposits 6,114 6,744 (9%) 6,563 Highlights Nigeria profit after tax was $57 million, down $161 million, or 74%, from the prior year. Net revenue was $876 million, down $113 million, or 11%, primarily driven by adverse currency movements. In constant dollars, net revenue was up $56 million, or 6%, to $1.0 billion. Net interest income was $526 million, an increase of $30 million, or 6%, reflecting growth in investment securities - treasury bills and bonds, and a reduction in interbank borrowing. Non-interest revenue was $350 million, down $143 million, or 29%. The decrease reflected foreign exchange scarcity challenges, lower fees from COT, reduced credit related fees due to lower loan balances, and caps on outbound remittances. Operating expenses were $529 million, down $59 million, or 10%. In constant dollars, operating expenses increased $43 million, or 7% to $629 million. The cost-income ratio was stable at 60.4% compared to 59.5% in the prior year. Impairment losses on loans were $271 million compared to $148 million in the prior year due to a comprehensive review of our portfolio and processes during the fourth quarter. The non-performing loans ratio was 10.2% compared to 3.2% in the prior year. 3 Effective 1 January 2016, our geographical presence has been regrouped into four clusters: UEMOA, WAMZ, Nigeria and CESA (CEMAC, EAC & SADC) Ecobank Group s Full Year 2015 Earnings Release Page 4

5 FRANCOPHONE WEST AFRICA (UEMOA) Net revenue (7%) 526 Operating expenses (7%) 319 Profit before tax and impairment losses (7%) 207 Impairment losses % 92 Profit after tax (26%) 101 Customer loans (net) 3,433 3,593 (4%) 3,829 Total assets 7,112 6,763 5% 7,932 Customer deposits 4,833 4,807 1% 5,389 F ranco pho ne WA comprises subsidiaries in Benin, Burkina Faso, Cape Verde, Côte d Ivoire, Guinea Bissau, M ali, Niger, Senegal, and Togo. Results include those for SOFIPE Burkina Faso (M icrofinance). N o te: Selected income statement line items only and thus may not sum up Highlights Francophone West Africa profit after tax was $85 million, a decrease of $29 million, or 26%, from the prior year. Net revenue was $441 million, down $32 million, or 7%, driven by US dollar appreciation against the Euro pegged CFA franc. In constant dollars, net revenue increased $54 million, or 11% to $526 million, reflecting underlying volume growth. Net interest income was $233 million, a decrease of $18 million, or 7%, and non-interest revenue was $208 million, a decrease of $14 million, or 6%, both primarily driven by currency translation effects. Operating expenses were $267 million, a decrease of $19 million, or 7%. In constant dollars, operating expenses were up $33 million, or 11%, to $319 million. The cost-income ratio was stable at 60.6% compared with 60.7%, a year ago. Impairment losses were $77 million, up $32 million, or 70%. The increase reflected higher impairments in Senegal, Mali, and Togo. The non-performing loan ratio was 8.2% compared with 5.0% in the prior year. REST OF WEST AFRICA (WAMZ) Net revenue (3%) 452 Operating expenses % 237 Profit before tax and impairment losses (12%) 215 Impairment losses % 44 Profit after tax (28%) 115 Customer loans (net) 1,157 1,180 (2%) 1,340 Total assets 2,649 2,712 (2%) 3,031 Customer deposits 1,968 2,008 (2%) 2,258 R est o f West A frica comprises subsidiaries in Ghana, Guinea, Liberia, Sierra Leone and The Gambia N o te : Selected income statement line items only and thus totals may not sum up Highlights Rest of West Africa profit after tax was $90 million, a decrease of $35 million, or 28%, from the prior year. A significant depreciation of the Cedi against the US dollar adversely impacts results. The Cedi depreciated 22% against the US dollar in Net revenue was $370 million, down $13 million, or 3%. Net interest income was $225 million, down $6 million, or 3%, largely driven by adverse currency movements. Non-interest revenue was $145 million, a decrease of $7 Ecobank Group s Full Year 2015 Earnings Release Page 5

6 million, or 5%, reflecting lower client-driven foreign exchange trading income. Operating expenses were $199 million, an increase of $11 million, or 6%. The cost-income ratio deteriorated to 53.9%, compared to 49.3%, a year ago. Impairment losses were $36 million compared to $18 million in the prior year. The increase was primarily driven by impairments on energy-related loans in Ghana. The non-performing loan ratio was 3.6% compared to 4.0% in CENTRAL AFRICA (CEMAC) Net revenue (4%) 229 Operating expenses (7%) 142 Profit before tax and impairment losses % 87 Impairment losses % 27 Profit after tax % 39 Customer loans (net) 1,277 1,316 (3%) 1,425 Total assets 2,230 2,345 (5%) 2,487 Customer deposits 1,898 1,934 (2%) 2,117 C entral A frica comprises subsidiaries in Cameroon, Central African Republic, Chad, Congo-Brazzaville, Equatorial Guinea, Gabon and Sao Tome & Principe. N o te: Selected income statement lines only and thus totals may not sum up Highlights Central Africa profit after tax was $33 million, up $1.2 million, or 4%, from the prior year. Net revenue was $192 million, a decrease of $7 million, or 4%, driven by currency translation effects as the CFA franc depreciated against the US dollar. In constant dollars, net revenue increased $30 million, or 15%, to $229 million, primarily driven by Chad. Net interest income was $88 million, up $1.9 million, or 2%, driven by growth in earning assets and margin expansion. Non-interest revenue was $103 million, down $9 million, or 8%, reflecting underlying decrease in net trading income, partially offset by fees and commission income. Operating expenses were $119 million, down $9 million, or 7%. In constant dollars, operating expenses increased $14 million, or 11%, reflecting increased investments in communication and technology and operational losses, partially offset by a decrease in depreciation and amortisation expenses. Impairment losses were $23 million compared to $13 million, in the prior year. The increase reflected higher impairment provisions recognized in Chad and Central Africa Republic. EAST AFRICA (EAC) Net revenues % 126 Operating expenses % 101 Profit before tax and impairment losses % 24 Impairment losses % 8.8 Profit after tax % 11.0 Customer loans (net) (1%) 730 Total assets 1,138 1,131 1% 1,522 Customer deposits (6%) 991 East A frica comprises subsidiaries in Burundi, Kenya, Rwanda, South Sudan, Tanzania, Uganda and a representative office in Ethiopia. N o te: Selected income statement line items only and thus totals may not sum up Ecobank Group s Full Year 2015 Earnings Release Page 6

7 Highlights East Africa profit after tax was $8.1 million, compared to $0.8 million in the prior year. Net revenue was $107 million, up $22 million, or 26%. Net interest income was $51 million, up $8 million, or 18%, primarily reflecting growth in interbank lending. Non-interest revenue was $56 million, up $15 million, or 35%, primarily from client-driven foreign exchange income in South Sudan. Operating expenses were $87 million, an increase of $7 million, or 8%, driven by operational losses, professional fees, and information and communications technology investments in Tanzania and South Sudan. The costincome ratio improved to 81.7% versus 95.4% in the prior year. Impairment losses were $8.0 million compared to $3.9 million in the prior year. The increase reflected higher impairments in Uganda and Tanzania. The non-performing loan ratio was 9.1% compared to 6.9% in SOUTHERN AFRICA (SADC) Net revenues % 121 Operating expenses % 93 Profit before tax and impairment losses % 27 Impairment losses % 11.0 Profit after tax (3%) 8.7 Customer loans (net) % 500 Total assets % 1,054 Customer deposits % 675 So uthern A frica comprises subsidiaries in Democratic Republic of Congo, M alawi, Zambia, Zimbabwe and M ozambique. N o te: Selected income statement line items only and thus totals may not sum up Highlights Southern Africa profit after tax was $8.9 million, down 3% from the prior year. Net revenue was $109 million, up $7.1 million, or 7%. Net interest income was $48 million, up $5.4 million, or 13%, primarily driven by growth in interest earning assets, partially offset by spread compression. Non-interest revenue was $61 million, up $1.8 million, or 3%, driven by fees and commission income. Operating expenses were $83 million, an increase of $5.3 million, or 7%. The cost-income ratio was 77%, on prior year. Impairment losses were $9.7 million, up 22%, reflecting higher impairments in Zambia. The non-performing loans ratio was 5.7% compared to 6.4% in the prior year. EDC GROUP Revenue (64%) 23.0 Operating expenses (26%) 22.3 Profit before tax and impairment losses (0.8) 27.3 n.a 0.6 Impairment losses ,304% 84.6 Profit after tax (88.1) 22.5 n.a (87.0) Assets under management (AUM) % ED C Gro up is the Investment Banking subsidiary of ETI including Securities and Asset M anagement N o te : Selected income statement line items only and thus totals may not sum up Ecobank Group s Full Year 2015 Earnings Release Page 7

8 Highlights Ecobank Development Corporation loss after tax was $88 million compared to an after-tax profit of $23 million in Net revenue was $20 million, down $35 million, or 64%. Investment banking revenue was $8.8 million, a decrease of $26 million, or 75%, due to lower deal flow across our operating countries. Securities and asset management revenue was $11 million, a decrease of $9 million, or 45%. Operating expenses of $21 million were down $7 million, or 26%, benefited from currency translation effects and lower variable costs. The cost-income ratio deteriorated to 104% compared to 50% in the prior year, reflecting lower revenues. Impairment losses were $85 million compared to $1.9 million in 2014 in our securities business. The increase reflected higher impairments on loans to micro-finance institutions (MFIs) in Ghana due to a comprehensive review of our portfolio and processes. Assets under management (AUM) were $347 million at 31 December 2015, an increase of $39 million, from the prior year. INTERNATIONAL Year ended 31 December (in millions of US$) YoY 2015 Net revenues % 56.7 Operating expenses % 28.3 Profit before tax and impairment losses % 28.4 Impairment losses n.a 4.4 Profit after tax % 15.2 Customer loans (net) (43%) 260 Total assets (35%) 687 Customer deposits (50%) 310 Financial results for International are those for our subsidiary in Paris. N o te: Selected income statement line items only and thus totals may not sum up Highlights International profit after tax was $13 million, up $7 million, or 109%, from the prior year. Net revenue was $48 million, an increase of $19 million, or 69%. Net interest income on loans was $10 million, up $4 million, or 77% on higher average loan balances, partially offset by a voluntary reduction of the portfolio as a result of a slowdown in economic activity and regulatory change in the single obligor limit. Non-interest revenue was $48 million, up $15 million, or 67%. The increase was primarily driven by the provision of FX intermediation for clients, particularly driven by volatility in FX markets in Africa in the second half 2015 and 50-plus new client acquisitions. Operating expenses were US$24 million, up US$5 million, or 28%, reflecting investments made to improve the operational platform and client services, as well as expenses related to business development and variable compensation in relation to record profit growth. The cost-income ratio stands at 50%, an improvement by 16 percentage points from prior year. Impairment losses of US$3.7 million in 2015, reflect credit degradations in a few borrowers, as a result of the weak economic environment # # # Ecobank Group s Full Year 2015 Earnings Release Page 8

9 About Ecobank: Incorporated in Lomé, Togo, Ecobank Transnational Incorporated (ETI) is the parent company of the leading independent pan-african banking Group, Ecobank, present in 36 African countries. The Ecobank Group is also represented in France through its subsidiary EBI SA in Paris. ETI also has representative offices in Dubai-United Arab Emirates, London-UK, Beijing-China, Johannesburg-South Africa, and Addis Ababa-Ethiopia. ETI is listed on the stock exchanges in Lagos, Accra, and the West African Economic and Monetary Union (UEMOA) the BRVM in Abidjan. The Group is owned by more than 600,000 local and international institutional and individual shareholders. It employs over 19,000 people in 40 different countries in over 1,200 branches and offices. Ecobank is a full-service bank, providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organisations, medium, small and micro businesses and individuals. Additional information may be found on the Group s corporate website at: Cautionary note regarding forward-looking statements Certain statements in this document are forward-looking statements. These statements are based on management s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements. SEE NEXT PAGE FOR INVESTOR CONFERENCE CALL DETAILS Ecobank Group s Full Year 2015 Earnings Release Page 9

10 Management Conference Call Ecobank will host a live conference call on Friday 15 April 2016 at 13:00 GMT (14:00 Lagos time) to present the audited financial results for the year ended 31 December 2015 and the unaudited financial results for the three months ended 31 March There will be a Q&A session at the end of the call. NOTE: Financial results for the three months ended 31 March 2016 will be published on Thursday 14 April The conference call facility can be accessed via online registration using the link provided below: Online Registration: Please note the key steps in the registration process outlined below: Upon registering each participant will be provided with Participant Dial-in Numbers, Direct Event Passcode and unique Registrant ID. Registered Participants will also receive a call reminder via the day prior to the event. In the 10 minutes prior to call start time, Participants will need to use the conference access information provided in the received at the point of registering. Note: Due to regional restrictions some participants may receive Operator assistance when joining this conference call and will not be automatically connected. If you should encounter any problems with the online registration, please dial the following number for assistance: (you will also need to provide the Conference ID: ). For those who are unable to listen to the live call, a replay of the conference all will be available from 16:30 GMT on 15 April to 16:30 GMT on 21 April. You may participate by dialling , UK free. Call: , or USA: 1 (866) and the Conference ID: We shall post the earnings presentation on our website before the conference call. Investor Relations Ecobank is committed to continuous improvement in its investor communications. For further information, including any suggestions as to how we can communicate more effectively, please contact Ato Arku via ir@ecobank.com. Full contact details below: Investor contact: Ato Arku T: M: E: aarku@ecobank.com Media contact: Richard Uku Group Head, Corporate Communications T: M: E: ruku@ecobank.com Ecobank Group s Full Year 2015 Earnings Release Page 10

11 Ecobank Group IFRS AUDITED CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015 In thousands of US dollars, except per share amounts Revenue Interest income 1,748,306 1,731,628 Interest expense (602,746) (622,221) Net interest income 1,145,560 1,109,407 Fee and commission income 582, ,222 Fee and commission expense (35,477) (38,502) Net trading income 412, ,648 Net (losses ) / gains from investment securities (951) 5,070 Other operating income 1,881 42,036 Non-interest revenue 960,415 1,170,474 Total net revenue 2,105,975 2,279,881 Impairment losses on: - loans and advances (427,081) (229,312) - other financial assets (104,963) (37,648) Impairment losses on financial assets (532,044) (266,960) Operating expenses Staff expenses (591,543) (649,094) Depreciation and amortisation (112,520) (126,685) Other operating expenses (663,455) (715,354) Total operating expenses (1,367,518) (1,491,133) Operating profit after impairment losses and operating expenses 206, ,788 Share of loss of associates (1,174) (2,239) Profit before tax 205, ,549 Taxation (93,505) (122,024) Profit for the year from continuing operations 111, ,525 Loss for the year from discontinued operations (4,270) (2,755) Profit for the year 107, ,770 Attributable to: Owners of the parent (total) 65, ,864 Continuing operations 67, ,351 Discontinued operations (2,306) (1,488) Non-controlling interest (total) 41,925 56,907 Continuing operations 43,889 58,174 Discontinued operations (1,964) (1,267) Earnings per share from continuing operations attributable to owners of the parent during the year (expressed in United States cents per share) 107, ,770 Basic Diluted Earnings per share from continuing operations attributable to non-controlling interest during the year (expressed in United States cents per share) Basic Diluted (0.01) (0.01) (0.01) (0.01) Weighted-average ordinary shares (in thousands) 23,986,466 20,087,840 Weighted-average diluted ordinary shares (in thousands) 24,431,050 21,850,137 Cash dividends declared per ordinary share (US$ cents) Ecobank Group s Full Year 2015 Earnings Release Page 11

12 Ecobank Group IFRS AUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December, (In thousands of US dollars) Profit for the year 107, ,770 Other comprehensive income: Items that may be subsequently reclassified to profit or loss: Exchange difference on translation of foreign operations (294,529) (433,754) Net fair value gain / (loss) on available-for-sale financial assets 133,964 (40,389) Remeasurements of defined benefit obligations 3, Taxation relating to components of other comprehensive income that may be subsequently reclassed to profit or loss (51,555) 984 Items that will not be reclassified to profit or loss: Property and equipment - net revaluation gain ,179 Taxation relating to components of other comprehensive income that will not be reclassed profit or loss (190) (40,181) Other comprehensive loss for the year, net of taxation (207,945) (400,470) Total comprehensive loss for the year (100,481) (5,700) Total comprehensive (loss)/ income attributable to: Owners of the parent (109,175) (41,001) Continuing operations (106,869) (39,513) Discontinued operations (2,306) (1,488) Non-controlling interests 8,694 35,300 Continuing operations 10,658 36,568 Discontinued operations (1,964) (1,267) Ecobank Group s Full Year 2015 Earnings Release Page 12

13 Ecobank Group IFRS AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015 In thousands of US dollars Assets Cash and balances with central banks 3,245,363 3,546,543 Financial assets held for trading 171, ,434 Derivative financial instruments 144, ,664 Loans and advances to banks 1,770,036 1,882,501 Loans and advances to customers 11,200,349 12,311,642 Treasury bills and other eligible bills 1,436,405 1,276,120 Investment securities: available-for-sale 2,669,692 1,435,580 Pledged assets 759,086 1,032,146 Other assets 513, ,318 Investments in associates 15,802 16,773 Intangible assets 382, ,257 Property and equipment 893, ,690 Investment properties 136, ,167 Deferred income tax assets 123, ,110 Assets held for sale 91, ,617 Total assets 23,553,919 24,243,562 Liabilities Deposits from other banks 703, ,841 Deposits from customers 16,427,553 17,436,970 Other deposits 729, ,300 Derivative financial instruments 1,336 20,478 Borrowed funds 1,779,277 1,540,264 Other liabilities 1,049, ,573 Provisions 28,694 26,368 Current income tax liabilities 69,081 69,061 Deferred income tax liabilities 117,821 65,405 Retirement benefit obligations 17,436 12,957 Liabilities held for sale 107, ,261 Total liabilities 21,030,674 21,588,477 Equity Capital and reserves attributable to the equity holders of the parent company Share capital 2,029,698 1,979,523 Retained earnings and reserves 316, ,302 Shareholders' equity 2,346,009 2,450,825 Non-controlling interests 177, ,260 Total equity 2,523,245 2,655,085 Total liabilities and equity 23,553,919 24,243,562 Ecobank Group s Full Year 2015 Earnings Release Page 13

14 Ecobank Group IFRS AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY In thousands of US dollars PPE revaluation Share capital 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 Foreign currency translation differences (412,148) (412,148) (21,606) (433,754) Net changes in available for sale investments, net of taxes (39,405) (39,405) (39,405) Net gains on revaluation of property 71,998 71,998 71,998 Remeasurements of post-employment benefit obligations Profit for the year 337, ,863 56, ,769 Total comprehensive loss for the year - 71,998 (39,405) (412,148) ,863 (41,000) 35,300 (5,700) Dividend relating to 2013 (29,252) (29,252) Issued Share Capital 208, , ,376 Treasury shares 1,932 1,932 1,932 Transfer to share option reserve - - Transfer to general banking reserves (1,066) 1, Transfer to statutory reserve 208,558 (208,558) - - Share option exercised ,459 (154,459) Convertible loans 345, , ,048 Convertible loans - equity component 15,132 (15,132) - - At 31 December 2014 / 1 January ,979, ,599 (80,432) (824,929) 688, ,679 2,450, ,260 2,655,086 Changes in Equity for 2015 : Foreign currency translation differences (261,298) (261,298) (33,231) (294,529) Taxes 82,409 82,409 82,409 Net gains on revaluation of property Obligations 3,837 3,837 3,837 Profit for the year 65,539 65,539 41, ,464 Total comprehensive income for the year ,409 (261,298) 3,837 65,539 (109,175) 8,694 (100,482) Dividend relating to 2014 (35,718) (35,718) Treasury shares 8,229 (7,152) 1,077 1,077 Transfer from share option reserve (359) Share option exercised Bonus issue 37,655 (37,655) - Transfer to general banking reserves 21,165 (21,165) - Transfer to statutory reserve 28,331 (28,331) - Conversion of preference shares 3,842 3,842 3,842 Convertible loans - equity component (1,009) (1,009) (1,009) At 31 December ,029, ,937 1,977 (1,086,227) 733, ,426 2,346, ,236 2,523,245 Ecobank Group s Full Year 2015 Earnings Release Page 14

15 Ecobank Group IFRS AUDITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2015 In thousands of US dollars Cash flow from operating activities Profit before tax 205, ,549 Net trading income - foreign exchange (80,389) (15,601) Net (gain)/loss from investment securities 951 (5,070) Fair value (gain)/loss on investment properties 22,160 (699) Gain on bargain purchase - (568) Impairment losses on loans and advances 427, ,312 Impairment losses on other financial assets 104,963 37,648 Depreciation of property and equipment 90, ,215 Net interest income (1,145,560) (1,109,407) Amortisation of software and other intangibles 21,858 25,470 Impairment charges on property and equipment - 27 Loss on sale of property and equipment 2, Share of loss of associates 1,174 2,239 Income taxes paid (51,372) (86,189) Changes in operating assets and liabilities Trading assets 108,100 (164,517) Derivative financial assets 103,439 (106,318) Other treasury bills (263,179) 274,650 Loans and advances to banks 17,568 (285,549) Loans and advances to customers 839,030 (686,701) Pledged assets 273, ,288 Other assets (27,311) 203,595 Mandatory reserve deposits 526,764 (439,091) Other deposits 156,412 (104,660) Due to customers (1,009,417) 947,066 Derivative liabilities (19,142) 19,024 Other provisions 2,326 (2,143) Other liabilities 247,486 (124,525) Interest received 1,748,306 1,731,628 Interest paid (602,746) (622,221) Net cash flow from operating activities 1,699, ,412 Cash flows from investing activities Acquisition of subsidiaries, net of cash acquired - (2,901) Purchase of software (24,154) (10,874) Purchase of property and equipment (211,520) (181,440) Proceeds from sale of property and equipment 68,459 29,753 Purchase of investment securities (1,459,656) (4,113,497) Purchase of investment properties (7,980) (484) Proceeds from sale and redemption of securities 220,777 4,310,257 Net cashflow (used in) /from investing activities (1,414,074) 30,814 Cash flows from financing activities Repayment of borrowed funds (907,066) (432,915) Proceeds from borrowed funds 1,146, ,773 Proceeds of subscription of ordinary shares ,376 Proceeds from sale of treasury shares - 1,157 Dividends paid to non-controlling shareholders (35,718) (29,252) Dividends paid to owners of the parent - - Net cashflow from financing activities 203, ,139 Net increase in cash and cash equivalents 488, ,365 Cash and cash equivalents at start of year 2,373,090 1,641,749 Effects of exchange differences on cash and cash equivalents (252,000) (159,024) Cash and cash equivalents at end of the year 2,610,050 2,373,090 ` Ecobank Group s Full Year 2015 Earnings Release Page 15