Ecobank Ghana’s initiative to promote a cashless system is yielding impact with more than 80,000 customers of the bank signing on to the digital mobile banking platform, barely four months after its launch.
The digital platform, which is designed to promote financial inclusion by leveraging on the rising trends in mobile usage across the country, is expected to improve convenience in banking and accessibility.
The bank, which has close to 600,000 customers, is confident of signing all their customers on the digital banking platform in a bid to build a cashless economy.
The Managing Director of Ecobank Ghana, Mr Dan Sackey, said in an interview on the sidelines of the bank’s annual general meeting in Accra that the digital platform was a good way to build a cashless economy.
“We have tasked our staff to possibly sign on every customer of the bank on the platform,” Mr Sackey said.
“The digital platform allows a customer to do everything banking, especially for purchases and payment of bills and fees,” he added.
Among the digital platforms of the bank include the Ecobank Masterpass QR, Ecobank Xpress Account, Tbill4all and others.
At its 2017 Annual General Meeting, the bank proposed a dividend of 82Gp per share to the shareholders, which represents a payout ratio of 99 per cent after transfers to regulatory and statutory reserves.
The Board Chairman, Mr Terence Ronald Darko, said the bank had remained among the highest performers in terms of Return on Equity in the financial sector demonstrating its viability as premier destination for investors’ funds.
Despite the tough operating environment, the bank recorded a total revenue of GH¢1.2 billion in 2016, representing an 18 per cent growth over the performance of the 2015 results.
“The performance was largely driven by gains from de-recognition of financial assets in the oil sector,” he said.
The bank’s net interest income increased by five per cent from GH¢682 million to GH¢719 million, while the net fees and commission declined by 15 per cent from GH¢185 million to GH¢175 million due to lower transaction volumes associated with the operating environment.
Profit before tax amounted to GH¢462.7 million, which was driven downwards by increased loan book impairments. Impairments charges were up by 54 per cent from GH¢116 million to GH¢179 million.
Operating cost of GH¢566 million was 26 per cent up over that of the 2015 figure. The bank’s cost to income ratio was, however, impressive at 46.94 per cent.
“This is a testament to the improvements in our return on assets and successful outcomes of our cost cutting initiatives,” the board chairman said.
“We have maintained a positive liquidity gap. To shore up our liquidity position, our portfolio of instruments is well diversified in currency and other investment to provide optimum liquidity.”
The board is confident that the bank’s capital adequacy ratio of 15.29 per cent is a healthy mark-up on the regulatory requirements of 10 per cent and is as a result of the high standards of capital management set in place.
Source: http://www.graphic.com.gh/business/business-news/ecobank-goes-cashless-with-digital-platforms.html