Ecobank Ghana PLC delivered a strong financial performance in the first quarter of 2026, posting robust growth in profitability, stronger liquidity, improved capital adequacy and better asset quality, according to the latest Credit Assessment Report released by Tesah Capital, a wealth management, investment and pensions firm.
The report indicates that the bank’s earnings growth was largely driven by significantly lower impairment charges, continued expansion in customer deposits and improvements in operational efficiency, despite a slight decline in net interest income during the period under review.
Profit after tax increased by 33.3% year-on-year to GH¢439.33 million in the first quarter of 2026, compared with GH¢329.66 million recorded in the corresponding period of 2025.
According to Tesah Capital, the strong earnings performance demonstrates the bank’s resilience and ability to sustain profitability amid changing market conditions, supported by prudent risk management and a stronger funding base.
Profitability supported by lower impairment charges
While Ecobank Ghana maintained strong profitability, the composition of earnings reflected a shift away from interest income growth towards improved asset quality and lower credit costs.
The report noted that net interest income declined marginally by 5.6% year-on-year to GH¢794.94 million in the first quarter of 2026.
Despite the decline, the bank continued to generate strong earnings, supported by growth in non-funded income streams and enhanced operational efficiency.
A key driver of profitability during the quarter was the sharp reduction in impairment charges.
The bank’s impairment expenses fell by 59.5% year-on-year to GH¢44.44 million, compared with GH¢109.69 million recorded in the same period last year.
Tesah Capital attributed the significant decline in impairment charges to improved credit risk management practices and strengthening asset quality across the bank’s loan portfolio.
The lower provisioning requirements enabled the bank to retain a larger share of its earnings, contributing significantly to the growth in profit after tax.
Strong liquidity position maintained
The report highlights Ecobank Ghana’s continued liquidity strength during the first quarter of 2026.
The bank’s liquid assets ratio improved by 14%, reaching GH¢34.8 billion during the review period.
This development, according to the report, reflects stronger short-term liquidity buffers capable of supporting the bank’s financial obligations and operational requirements.
Customer deposits continued to serve as a major source of funding for the bank’s activities.
Deposits increased significantly by 25.8% year-on-year to GH¢26.10 billion in the first quarter of 2026.
The strong growth in deposits supported the expansion of the bank’s balance sheet and strengthened its capacity to fund lending and other business activities.
However, cash and cash equivalents declined by 25.4% year-on-year to GH¢15.30 billion during the period.
Despite this decline, Tesah Capital noted that the bank’s overall liquidity position remained strong, supported by its substantial liquid asset holdings.
Capital adequacy remains strong
Ecobank Ghana strengthened its capital position during the first quarter, maintaining levels well above regulatory requirements.
The bank’s Capital Adequacy Ratio (CAR) improved from 16.80% in the first quarter of 2025 to 20.50% in the first quarter of 2026.
This places the bank comfortably above the Bank of Ghana’s minimum regulatory requirement of 13% and provides a substantial capital cushion against potential economic and financial shocks.
The improvement in capital adequacy reflects stronger capitalization and enhances the bank’s ability to support future growth while maintaining regulatory compliance.
Asset quality continues to improve
The report also points to continued improvements in the quality of Ecobank Ghana’s loan portfolio.
The bank’s Non-Performing Loan (NPL) ratio declined from 24.01% in the first quarter of 2025 to 20.50% in the first quarter of 2026.
According to Tesah Capital, the improvement was supported by lower impairment charges and stronger credit risk management practices implemented by the bank.
Although the NPL ratio remains elevated relative to some peers within the banking industry, the downward trend signals progress in managing credit risk and improving portfolio performance.
The reduction in non-performing loans contributed significantly to the lower impairment charges recorded during the period and helped strengthen overall profitability.
Balance sheet expands to nearly GH¢52 Billion
Ecobank Ghana’s total assets continued to grow during the first quarter of 2026, reflecting expansion across key balance sheet categories.
Total assets increased by 12.4% year-on-year to GH¢51.99 billion, compared with GH¢46.25 billion in the first quarter of 2025.
The growth was driven largely by the strong increase in customer deposits and growth in earning assets.
The report noted that the expansion reinforces Ecobank Ghana’s position as one of the largest banks operating in the Ghanaian banking sector.
Leverage position strengthens
The bank also recorded an improvement in its leverage ratio during the review period.
The leverage ratio increased from 8.08% in the first quarter of 2025 to 9.68% in the first quarter of 2026.
This indicates stronger capital support relative to the bank’s total exposure and reflects a healthier balance sheet structure.
The improved leverage ratio further enhances the bank’s resilience and ability to withstand potential financial stress.
Tesah Capital’s assessment
In its conclusion, Tesah Capital stated that Ecobank Ghana’s current liquidity position should adequately enable the bank to meet its financial obligations.
The firm emphasized that the bank remains well-capitalized, with a Capital Adequacy Ratio of 20.50%, significantly above the regulatory minimum requirement of 13%.
The report also highlighted the improvement in asset quality, evidenced by the decline in the Non-Performing Loan ratio and the substantial reduction in impairment charges.
Given the bank’s strong liquidity, profitability and capital position, Tesah Capital recommended short-term fixed deposit investments with Ecobank Ghana, particularly within the 91-day to 182-day maturity range.
However, the firm advised investors and stakeholders to continue monitoring the sustainability of the bank’s asset quality improvements and earnings growth trajectory in the coming quarters.
Overall, the first quarter 2026 results underscore Ecobank Ghana’s strong financial standing, with rising profitability, expanding deposits, improved capital adequacy and strengthening asset quality positioning the bank for continued growth and stability in the remainder of the year.
