Page 14 - Ecobank Gambia Annual Report 2020
P. 14
Financial Statements & Annual Report
A word from our chairman
Dear Shareholders,
It is my honor to welcome you to the 12th Annual General
Meeting of Ecobank Gambia Limited and to present to you the
Bank’s performance for the financial year ended 31st December
2020.
TThe financial year 2020 was characterized by 2020 based on IMF data; which compares favorably to
unprecedented disruptions to all facets of our society due initial projection of a contraction of 1.8 percent. This is
to the fall-out from the Covid-19 global pandemic. attributed to fiscal stimulus, relaxation of the restrictions
Despite this challenge, your Bank once again reported and expected increase in agricultural productions.
increased profitability and growth during the 2020 According to the Central Bank’s Monetary Policy
financial year under review. Revenue grew by 12%, Report (March,2021), the banking Industry remains
year-on-year to GMD900 million, whilst profit before fundamentally sound, well capitalized and liquid. The
tax increased by 19%, year-on-year to GMD488 million. Industry’s Total Assets grew by 3.5 percent during the
The balance sheet sheet grew by 17% during the year year to GMD58.8 billion by end December 2020. The Risk
and this was funded mainly by a strong growth deposit Weighted Capital Adequacy ratio stood at 32.6 percent,
mobilization drive which recorded a 15% increase year- which is well above the current statutory requirement
on-year. The loan book declined by 35% year-on-year as of 10 percent. However, the industry’s stock of non-
the Bank consolidated its exposure in some key sectors in performing loans deteriorated to 6.8 percent as at end
line with our revised risk assessment and also in view of December 2020 from 4.6 percent in the prior year.
the global pandemic and its impact on business activity. DIVIDEND
The consistent strong performance posted by Ecobank Shareholders, I am once again pleased to report that the
Gambia in the face of an immensely challenging operating Board has recommended a dividend pay-out of GMD207
environment was made possible due to the pursuit of our million which represents GMD0.45 per ordinary share for
key strategic goals. These enabled the Bank to diversify the financial year 2020. This represents an increase of
its revenue base, mitigate risks and drive utilization of GMD0.18 per share over the 2019 financial year and a
our unmatched product offerings. dividend pay-out of 70% on the distributable profits. This
OUR OPERATING ENVIRONMENT is in tandem with the aspirations of the Board of Directors
The global economy is projected to have contracted by to ensure that the Bank meets its financial obligation to
3.5 percent in 2020 from a growth of 2.9 percent in 2019. its shareholders through dividend payments as well as
This is slightly higher than initial projection of 0.9 percent increased share value.
growth for 2020. This indicates a stronger than expected The need to ensure the Bank has sufficient capital buffer
growth outlook in the second half of 2020 as countries to withstand adverse effects of unexpected losses has
responded to the pandemic through medical and other become very crucial because of the Covid-19 pandemic.
various policy interventions. [World Economic Outlook The Board of Directors has recommended plowing back
report by the International Monetary Funds (IMF)]. 30 percent of distributable profit to shore up the capital
Economic performance in the emerging markets and base in order to put the Bank on sound capital footing. A
developing economies, including sub-Saharan Africa strong capital base will enable the Bank to drive future
are projected to have contracted by 2.4 percent and 2.6 growth opportunities and meet anticipated future capital
percent respectively in 2020 from a growth of 3.7 percent requirements.
and 3.3 percent respectively in 2019. EXTERNAL AUDITORS
On the domestic front, the Gambian economy is We wish to extend our sincere gratitude to our External
projected to have registered zero economic growth in Auditors - Grant Thornton (Senegal) & HAD & Co for their
12 Ecobank Gambia Annual Report 2020 www.ecobank.com
