Ecobank Financial Report For 2017

Ecobank Annual Report 2017 1
Ecobank Ghana branches

ECOBANK GH ACCRA MAIN ECOBANK GH DARKUMAN ECOBANK GH TEMA COMM 6 ECOBANK GH BANTAMA ECOBANK MADINA CENTRAL
2 Morocco Lane, Off The Ground Floor, Ideal House, Vertical Plaza, Hospital Road, Ground and First Floors of building BRANCH
Independence Avenue Darkuman Junction, Kaneshie - Community 6, situated on Plot No.20,Bantama Old Road Taxi Rank Near Randy
(233) 0302-61 04 00 Mallam Highwa (233) 0303 216605 High Street Kumasi Pharmacy, Accra
(233) 0302 68 08 66 (233) 0302 321950 (233) 0303 205822 (233) 03220 49006 (233)0302-513321/2
ecobankgh@ecobank.com (233) o302 321940 ecobankgh@ecobank.com ecobankgh@ecobank.com (233)0302-513321
P.O.Box AN 16746 Accra-North ecobankgh@ecobank.com P.O. Box Co 3207, Tema PMB GPO Kumasi ecobankgh@ecobank.com
PMB, GPO,Accra
ECOBANK GH TEMA ECOBANK GH KNUST ECOBANK GH STADIUM AMAKOM ECOBANK SUAME BRANCH
Ecobank Ghana Limited Tema ECOBANK GH TAFO Commercial Area, KNUST Ground Gloor of building formerly Suame - Offinso Road, Kumasi
Branch Town Center Plot No. Tafo Mampoteng Road Tafo Kumasi (233) 03220 63051/2/3 known as Edward Nassar Building, (233)03220-44414
TC/ MKT / A / 76. (233) 03220-40890 (233) 03220 63050 Kumasi Sports Stadium 233-3220-30229
(233) 0303 201053 - 6 ecobankgh@ecobank.com ecobankgh@ecobank.com (223) 03220-83841 ecobankgh@ecobank.com
(233) 0303 20 10 57 PMB GPO Kumasi PMB, GPO, Kumasi (233) 03220 83844
ecobankgh@ecobank.com ecobankgh@ecobank.com ECOBANK SAKUMONO BRANCH
P.O Box co 3207 Tema ECOBANK GH A AND C ECOBANK GH SUNYANI PMB GPO Kumasi Sakumono Estates Junction,
Shopping Mall, No. 783, Jungle Rd, Plot No.5 Block B House NO B 5/2 near the Traffic Light
ECOBANK GH RING ROAD East Legon (233) 028 9109407 / Sunyani Central ECOBANK GH TANOSO (233)0303-413617
Fidelity House, 20 Ring Road Central 0302 51 88 91 / 90 (233) 03520-25498,25495 First Floor of property on site with (233)0302-413617/8
PMB 43, Cantonments, Accra (233) 0302 518890 (233) 03520-25490 Petrol Filling Station, No. 6, ecobankgh@ecobank.com
(233) 0302 244007/8/9 ecobankgh@ecobank.com ecobankgh@ecobank.com Tanoso/Dekyemso Sunyani-Kumsai
(233) 0302 23 77 45 P.O. BOX 17506, East Legon PMB Ecobank Sunyani Highway ECOBANK KWAME NKRUMAH AVE.
ecobankgh@ecobank.com (233) 03220-52043/52045/52056 Ground Floor, Okofo House, Kwame
PMB 43,Cantonments, Accra ECOBANK GH LEGON ECOBANK GH ELUBO (233) 03220-52094 Nkrumah Avenue Adabraka
Off Nuguchi Road Near Western Region , ecobankgh@ecobank.com (233)0302-244835
ECOBANK GH TUDU Legon Mosque, (233) 03122-22054/95/83 PMB GPO Kumasi (233)0302-254693
Kimbu Road, opposite Accra (233) 0302 519835/6 (233) 03122-22567 ecobankgh@ecobank.com
Central MTTU (233) 0302 519837 ecobankgh@ecobank.com ECOBANK GH SAFE BOND BRANCH
(233) 0302 685587/685559 ecobankgh@ecobank.com P.O.Box 48 Elubo Ground floor safebond car ASHTOWN EAST BRANCH
(233) 0302 68 55 85 P.O Box PMB GPO, Accra park Building Dr. Mensah Traffic Light, Kumasi
ecobankgh@ecobank.com ECOBANK GH WEIJA (233) 0302 200946/7 (233)03220-80552/6
P.O Box 16746 Accra North, Ghana ECOBANK GH TAKORADI Ground Floor Aplaku Building,Old (233) 0302 200979 (233)03220-80699
Plot no. 34 Axim Road Harbour Weija Barrier, Opp. National ecobankgh@ecobank.com ecobankgh@ecobank.com
ECOBANK GH SST Commercial Area PMB Takoradi Investment Bank, Winneba Road. P.O.Box CO 3207 Tema
Ground Floor Silver Star Tower, (233) 03120-23870/ 21250 / 21258 (233) 0302- 853202/3 ECOBANK KWASHIEMAN BRANCH
Airport City (233) 03120 21 9 13 (233) 0302-853204 ECOBANK GH AFLAO BRANCH Kwashieman Road,
(233) 0302, 767404/ 778277 ecobankgh@ecobank.com ecobankgh@ecobank.com Hse No. ASI-B-489 Aflao Along P.O.BOX 1862 ACCRA
(233)0302 78 71 67 PMB Takoradi. PMB GPO, Accra Aflao Border Road (233)0302-7008751
ecobankgh@ecobank.com (233) 03625- 30890, 30893 ecobankgh@ecobank.com
PMB KA 92, Kotoka International ECOBANK GH MKT CLE TDI ECOBANK GH ABREPO MAIN (233) 03625 31028
Airport, Accra. Adjacent Arvo Hotel Ike 'O' Plaza ,Opposite the Neoplan ecobankgh@ecobank.com ECOBANK EAST AIRPORT BRANCH
P. O. Box TD114, Takoradi Bus Assembly Plant P.O.Box CO 3207 Tema Dede Plaza Near Action Chapel
ECOBANK GH ABEKA LAPAZ Tel: (233)312024158, 24190 (233) 03220-83835 / 83836/ 83837 (233)0302-817061/2
Meacham Hse Annex, Mallam- Fax: (233)312024173 (233) 03220-83838 ECOBANK GH LABONE BRANCH (233)0302-817071
Abeka Lapaz Highway ecobankgh@ecobank.com ecobankgh@ecobank.com Block No. B56 (Opposite Coffee ecobankgh@ecobank.com
(233) 0302 230061 PMB GPO Kumasi Shop) Labone
(233) 0302 23 17 36 ECOBANK GH TARKWA (233) 0302-933509 , 768132 ECOBANK KWABENYA BRANCH
ecobankgh@ecobank.com Ground floor SIC Tarkwa ECOBANK GH HAATSO (233) 0302-768133 Adjacent Champion Oil near
PMB,GPO, Accra office complex Ebenezer Plaza Atomic Road haatso, ecobankgh@ecobank.com Kwabenya Roundabout
(233) 03123 22022/4 North Legon Residential Area PMB General Post Office Accra (233)0302-409241
ECOBANK GH MACC HILL (233) 03123 22 0 25 0302-520834 / 520831 ecobankgh@ecobank.com
Kaneshie - Mallam Highway, Lower ecobankgh@ecobank.com 021-520833 ECOBANK GH TAMALE
Mccarthy Hill, Gbawe South P.O Box 100 Tarkwa ecobankgh@ecobank.com Plot N0. 84 in Rice City Residential ECOBANK OKPONGLO BRANCH
233) 0302 275375 / 028 910061 / PMB GPO, Accra Area, Tamale, lying along North East Okponglo towards La Bawlashie
275375 (233) 0302- 27 5375 ECOBANK GH OSU of Tamale - Bolgatanga Traffic Light, Legon
ecobankgh@ecobank.com Osu Oxford street adjacent ECOBANK GH WESTLANDS Thrunk Road P.O.BOX 1862
PMB, GPO, Accra SSNIT hospital. Ground Flour of building situated at (233) 03720-27933/34 (233)0302922401/030-7008757
(233) 0302 912782/4/5/6 Christain village opposite Golf (233) 03720-27936 (233)-277-900125
ECOBANK GH DANSOMAN (233) 0302 76 31 20 Channel, Kisseman ecobankgh@ecobank.com ecobankgh@ecobank.com
Plot No. 1A, High Street, Dansoman ecobankgh@ecobank.com 0302-920849
Estate (233) 0302 326580/82 PMB CT 443,Cantonments,Accra ecobankgh@ecobank.com BURMA CAMP BRANCH ECOBANK ASHIAMAN BRANCH
(233) 0302 326595 PMB GPO, Accra Opposite the Burma Camp Plot No. Ash/b58 Ashaiman Market
ecobankgh@ecobank.com ECOBANK GH KUMASI Post Office (233)03027051141
PMB, GPO, Accra Harper road, Prempeh II roundabout ECOBANK TEMA MOTOR WAY (233) 0302-767414 / 767645 ecobankgh@ecobank.com
Adum PMB Kumasi ROUNDABOUT ecobankgh@ecobank.com
ECOBANK GH SOUTH IND (233) 03220 37804 Ground Floor of Gyau Towers on ECOBANK TWIFO BRANCH
Old KBL Depot, near (233) 03220 37 3 33 Plot No.LI//5A/13A,Accra tema ECOBANK REINSURANCE HOUSE Twifo Oil Palm Plantation Estate
Agbogbloshie Market ecobankgh@ecobank.com Motorway Light Industrial Area BRANCH Twifo Praso
(233) 0302-670770,670745,670752 0303-305510/11/12/14 Reinsurance House 68 Kwame 0332 195513
(233) 0302-670738 ECOBANK GH KUMASI ADUM 0303-305513 Nkrumah Avenue P.O. Box 1862 ecobankgh@ecobank.com
ecobankgh@ecobank.com Oak Arcade, Opp. Agyekum Building, ecobankgh@ecobank.com Accra
PMB, GPO Accra Adum – Kumasi P.O.Box CO 3207 Tema (233)0302-240049 ECOBANK BENSO BRANCH
(233) 03220-47948,47959,47969 (233)0302-240056/9 Benso oil Plam Plantation(BOPP)
ECOBANK GH ACCRA MALL (233) 03220-45872 ECOBANK GH MADINA ecobankgh@ecobank.com Estate Adum-Benso , Estates
Ground Floor, Accra International ecobankgh@ecobank.com Ground Floor and entire first floor of Western Region
Mall,Tetteh Quarshie Interchange, PMB GPO,Kumasi the Agrimat Building on Plot No.389, ECOBANK TESANO BRANCH 0322092185/03220 902055
Accra North Legon residential Area (233)0302-237317 ecobankgh@ecobank.com
(233) 0302-823053/4/5 ECOBANK GH TEMA MALL (233) 0302 521876 (233)0302-237316
(233) 0302- 823056 Ground Floor Tema Shopping Mall, (233) 0302 521878 ecobankgh@ecobank.com ECOBANK NEW ABEKA BRANCH
ecobankgh@ecobank.com Heavy Industrial Area,Area Tema ecobankgh@ecobank.com Tesano P.O.Box 1862 New Abeka Branch,
PMB GPO, Accra (233) 0305-305175,305182,305183 PMB GPO, Accra H/N B8/27 Flat Top - George Bush
(233) 0305 - 22305174 ECOBANK HOSPITAL ROAD BRANCH Highway, Akweteman
ECOBANK GH SPINTEX RD ecobankgh@ecobank.com ECOBANK GH MILE 7 ACHIMOTA Hospital Road, Com 11 Junction 0289559780
Hse, No.56,Baatsona Highway P.O.Box CO 3207 Tema Ground Floor of house No.AT/A39, (233)0303-300973 ecobankgh@ecobank.com
Extension( Spintex Road),Accra. New Achimota (233)0303-308460
(233) 0302-815860 ECOBANK GH KENYASE (233) 0302 416904/5 233) ecobankgh@ecobank.com
(233) 0302-815861 Newmont Bypass Road Kenyasi 0302 413807
ecobankgh@ecobank.com Brong Ahafo Region ecobankgh@ecobank.com ECOBANK KASOA BRANCH
P.O.Box SR112, Tema (233) 024 2209099 / 03220 47034 PMB GPO, Accra BAWJIASE RAOD
(233) 03220-47034 (233)0302-862887
ECOBANK RING ROAD ecobankgh@ecobank.com ECOBANK GH KOTOBABI (233)0302-862886
Hse, No. C1222, Olusegun P.O.Box 91,Kenyasi Nkansa-Gyane House, Opp ecobankgh@ecobank.com
Obasanjo Highway AMA-Ayawaso Central Sub-Metro
(233) 0302 241883 ECOBANK GH LONG ROOM District Office, Kotobabi-New Town ECOBANK KANTAMANTO BRANCH
(233) 0302 241889 Ghana Ports and Harbours Head Road, Accra, Ghana Tarzan House near Hotel De Horses
ecobankgh@ecobank.com Office Long Room, Tema (233) 0302 250325/7 (233)0302-678243
PMB, GPO, Accra (233) 0303-202125 / 206789 (233) 0302 250330 (233)0302-678246
(233) 0303 20 21 25 ecobankgh@ecobank.com ecobankgh@ecobank.com
ecobankgh@ecobank.com PMB GPO, Accra
P.O.Box CO 3207 Tema
CONTENTS
Annual reports and
financial statements
Notice of meeting 4
Corporate information 7
Financial highlights 16
Business review 18
Chairman’s address 32
Managing Director’s statement 37
Directors’ report 43
Corporate governance 51
Corporate social responsibility 57
Sustainability report 62
Independent auditor’s report 67
Consolidated statement of comprehensive income 72

Consolidated statement of financial position 75
Consolidated statement of changes in equity 76
Consolidated statement of cashflows 80
Notes to the financial statements 85
Shareholders’ Information 172
Summary 174
Proxy form 176
Resolution 177
2 Ecobank Annual Report 2017

2017 snapshot
More clients using A strong and The opening of our

our digital channels experienced board new Head Office
World class Strong growth in

banking services customer deposit

NOTICE
of meeting
NOTICE IS HEREBY GIVEN that the Annual General Meeting (AGM) of Ecobank Ghana Limited will be held
at Ecobank Ghana Limited, 2 Morocco Lane, Off Independence Avenue, Ministerial Area, Accra on
Friday 11th day of May, 2018 at 10.30 am to transact the following business:
AGENDA
(Ordinary Business)
1. TO CONSIDER AND ADOPT the Statement of Accounts of the Company for the year ended the 31st
day of December, 2017 together with the Reports of the Directors and Auditors thereon.
2. TO RATIFY the appointment of Directors.
3. TO APPOINT Auditors.
4. TO AUTHORISE the Directors to fix the remuneration of the Auditors.
(Special Business)
TO CONSIDER and if thought fit, pass the following resolutions which will be proposed as Special Resolutions:
5. That the Directors be and are hereby authorized to increase the stated capital of the Company up to
GHS 416,641,000 in accordance with Section 66 (1) of the Companies Act, 1963 (Act 179).
6. That the Directors be and are hereby authorized to transfer the sum of GHC190,000,000 from Income
Surplus to Stated Capital pursuant to section 66 (1) of the Companies Act, 1963 (Act 179).
7. That the Directors be and are hereby authorized to undertake a Capitalization Issue in accordance
with Section 74 (1) of the Companies Act, 1963 (Act 179) and section 43 (a) of the Regulations of the
Company by the issuance of one (1) ordinary share to each existing shareholder for every ten (10)
ordinary shares held, to be credited as fully paid for.
A MEMBER entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote in
his/her/its stead. A proxy need not be a member of the Company. The appointment of a proxy will not
prevent a member from subsequently attending and voting at the meeting in person. A proxy form is on
the last page of the Annual Reports which should be completed and deposited with the Registrars at Ghana
Commercial Bank, Registrars Office, Thorpe Road, High Street, Accra not later than 3.00pm on Thursday
10th May, 2018.
DATED AT ACCRA THIS 1ST DAY OF FEBRUARY, 2018.
BY ORDER OF THE BOARD
AWURAA ABENA ASAFO-BOAKYE (MRS.)

(COMPANY SECRETARY).

BOARD
of directors
Terence Ronald Darko (Chairman) CORPORATE INFORMATION

Daniel Sackey (Managing Director)
SECRETARY
Felicity Acquah (Mrs) Awuraa Abena Asafo-Boakye
Martin Eson-Benjamin 2 Morocco Lane
Off The Independence Ave.
Samuel Ashitey Adjei Ministerial Area
Rosemary Yeboah (Mrs) Accra
Morgan Fianko Asiedu

REGISTRARS
Edward Nartey Botchway GCB Bank Limited
Thorpe Road
Henry Dodoo- Amoo
(Appointed 28/6/17) High Street
Accra
Ohene Aku-Kwapong
(Appointed 28/6/17) REGISTERED OFFICE
Ecobank Ghana Limited
John Ofori-Tenkorang
2 Morocco Lane
(Appointed 19/7/17)
Off The Independence Ave.
Thomas Chukwuemeka Awagu Ministerial Area
(Resigned 7/5/17) Accra
AUDITORS
KPMG
Chartered Accountants
13 Yiyiwa Drive, Abelenkpe
P.O. Box GP 242
Accra

BOARD
profile
Mr. Terence Ronald Darko - Board Chairman
Mr. Terence Ronald Darko is the Managing Director of Mechanical Lloyd

Company Limited, a position he has held since 1978. He is a seasoned business
executive who has served on the Board of Directors of several institutions
including the Board of Trustees of the Social Security and National Insurance
(SSNIT). He has been the President of the Ghana Employers Association (GEA)
since September, 2010. Mr. Darko holds a Bachelor’s Degree in Business Studies
from the University of London.
Mr. Daniel Nii Kwei-Kumah Sackey - Managing Director
Mr. Daniel Nii Kwei-Kumah Sackey was appointed as the Managing Director of
Ecobank Ghana Limited and Regional Executive for Anglophone West Africa
region with effect from 1st September 2016. He is an accomplished banker
with extensive banking experience across East, West and Southern Africa. He
has played various key roles within the Ecobank Group since he joined the Bank
in 1995. He previously served as Managing Director for Ecobank Zimbabwe and
Cluster Head for the Southern Africa Development Community (SADC) zone
comprising Zimbabwe, Zambia, Malawi, Mozambique and Democratic Republic
of Congo. Other positions he has occupied include Managing Director of
Ecobank Rwanda, Deputy Group Risk Manager and Regional Risk Manager. Mr.
Sackey holds a Master’s degree in Business Administration with specialization in
International Banking and Finance from the University of Birmingham, U.K and
a Bachelor of Science Degree in Administration (Accounting Option) from the
University of Ghana.

Mrs. Felicity Acquah - Non-Executive Director
Mrs. Felicity Acquah, a Project Analyst and Development Banker by profession,

recently retired as Managing Director of Eximguaranty Company (Gh) Limited.
With over 35 years of banking and business experience, she served in senior
positions at the Agricultural Development Bank, National Investment Bank,
Merchant Bank and Women’s World Banking. Mrs. Acquah was also a pioneer
in establishing the Empretec Ghana Foundation where she worked for seven
years. In 2005, the Kwame Nkrumah African Leadership Award was conferred
on her by the West Africa magazine. She was also adjudged as the “Marketing
Woman of the Year” in 2007 by the Chartered Institute of Marketing Ghana. Mrs.
Acquah holds an Executive MBA (Finance) from GIMPA, a Bachelor of Arts Degree
in Economics and Law from the Kwame Nkrumah University of Science and
Technology and a Postgraduate Diploma in Project Appraisal and Management
from the University of Connecticut, USA. She has served on numerous Boards
in the past including Bayport Financial Services and is currently a member of the
Board of Camelot Limited.
Mr. Martin Eson-Benjamin - Non-Executive Director
Mr. Martin Eson- Benjamin was reappointed CEO of the Millennium Development
Authority (MiDA) on 5th December, 2017. He earlier held this position from
November 2006 to May 2014. Prior to this, he was the CEO of Empretec Ghana
Foundation, serving concurrently as a member of the Presidential Commission
on Pensions, from 2004 to 2006. This was subsequent to a very successful career,
spanning over thirty years (1972-2004), in Unilever Ghana’s Lever Division,
where he rose to become the Marketing Director. In the brewing industry, Mr.
Eson-Benjamin served as the Chairman and first Ghanaian Managing Director
of the Kumasi Brewery Limited (KBL) in 1995, a joint venture of Heineken and
Unilever and then as Managing Director of the Ghana Breweries Limited (GBL),
Heineken International’s subsidiary, in 1997, bowing out as Chairman of the
GBL Board in 2004. He currently chairs the Enterprise Insurance Company
Limited, Enterprise Properties Limited and the Advisory Board of the University
of Ghana’s College of Health Sciences. He is also a member of the Board of CFAO
Ghana Limited. He was named by the Chartered Institute of Marketing Ghana
in 1994 as ‘Marketing Man of the Year’. In 2008, he was honoured by the State
as Officer of the Order of the Volta, for his contribution to Industry. He holds
a Bachelor of Science Degree in Administration from the University of Ghana.

BOARD PROFILE
Mr. Henry Dodoo-Amoo - Non-Executive Director
Mr. Henry Dodoo-Amoo is the Chief Executive Officer of IAF Management

Consultancy with a focus on the areas of Governance, Risk and Compliance
Management. He has held this position from 2013 to date. He is a seasoned
former banker with over 30 years banking experience, having served in various
capacities at the Standard Chartered Bank from 1978 to 2013. The positions
he held included Corporate Banking Training Manager, West Africa; Senior
Relationship Manager, Global and Multinational Corporates; Head of Sales and
Credit Support; Credit Officer, Africa Regional Office; Area Credit Officer, West
Africa; Senior Credit Officer in a number of African Countries, and Country Chief
Risk Officer in Nigeria and South Africa. Mr. Dodoo- Amoo holds an MBA from
the University of Reading, Henley Business School and a certificate from Oxford
University, Said Business School for executive education in leadership.
Dr. Ohene Aku Kwapong - Non-Executive Director
Dr. Ohene Aku Kwapong is a Chemical / Financial Engineer by profession. He is

currently with the Songhai Group in Sarasota Florida, a corporate development
company focused on strategy implementation, sales and operational excellence.
Over the years, he has served in various capacities including Senior Applications
Engineer at Exxon Research and Engineering, Florham Park and Associate,
Structured Credit Financing at the Deutsche Bank, London. He later rose to
become Vice President, Credit Trading, Structured Products at the Deutsche
Bank. He also worked with Park Street Advisors, London, formerly in the capacity
of Head, e-Trading Strategy & Business Development and then as the Chief
Restructuring Officer. He has served on several boards such as the Nordicom
A/S, Denmark and the New York City Economic Development Corporation, New
York. Dr. Kwapong obtained a Bachelor of Science Degree and Master’s Degree
in Chemical Engineering from Massachusetts Institute of Technology (MIT) as
well as a PhD in Chemical Engineering from Columbia University, New York.
He also holds an MBA in Financial Engineering from the MIT Sloan School of
Management.

Dr. John Ofori-Tenkorang - Non-Executive Director
Dr. Ofori-Tenkorang is a seasoned Investment Banker and Engineer. He is

currently the Director General of the Social Security and National Insurance
Trust (SSNIT). Prior to his appointment, he worked in the office of the Vice
President as a technical advisor. He has held various positions including serving
as an instructor at MIT, Vice President with AIG Financial Products Corporation
and subsequently as an Executive Director at Banque AIG. In this capacity, he
was posted to South Africa, where he was responsible for AIGFP’s investment
banking activities in Africa. Dr. Tenkorang attended Massachusetts Institute
of Technology (MIT), where he was awarded a Bachelor of Science Degree
and Master of Science Degree in Engineering, as well as a Sc,D in Electrical
Engineering and Computer Science. He is a member of Tau Beta Pi, Eta Kappa
Nu, and Sigma Xi Engineering Honor societies. He has also been the Chairman
of the Ghanaian National Committee of United World Colleges since 2009.
Mr. Samuel Ashitey Adjei - Non-Executive Director
Mr. Samuel Ashitey Adjei is currently the Managing Director of Ecobank Kenya
with additional responsibilities as Regional Executive of the Central, Eastern and
Southern region of the Ecobank Group. Prior to this, he served as the Managing
Director of Ecobank Ghana Ltd and Cluster Head for the Anglophone West
African (AWA) region for over ten years. Mr. Adjei is a seasoned banker with
over 26 years’ experience in the Ecobank Group. He holds a BSc in Statistics and
an MBA (Finance) from the University of Ghana, Legon.
Mrs. Rosemary Yeboah - Non-Executive Director
Mrs. Rosemary Yeboah is an experienced Banker with over 22 years banking

experience with international banks in the United Kingdom, Ghana and
Southern Africa. These include Standard Chartered Bank and Credit Suisse First
Boston. She has been with the Ecobank Group since 2008 and held various
positions within the Group. She has served as Group Cluster Head; Corporate
Banking-WAMZ region, Group Head, Multinational & Regional Corporates, with
responsibility for managing the Networked Corporate Clients within the Bank,
and Regional Head, Corporate Banking, EAC. Mrs. Yeboah holds a BA (Hons) in
Economics from the University of Kent, Canterbury, UK, an MA, Economics, from
the Université De Grenoble, France and an MBA from the Laureate University
of Liverpool, UK. She has also had executive education in leadership from the
Centre for Creative Leadership and University of Oxford, SAID Business School,
UK.

BOARD PROFILE
Mr, Morgan Fianko Asiedu - Executive Director
Mr. Morgan Fianko Asiedu has been with the Ecobank Group since February 1992.
He was appointed Executive Director of Ecobank Ghana (EGH) with oversight
responsibility for the Legal, Human Resource and Compliance Departments
in September 2012. Prior to this appointment, he was the Group General
Counsel and Company Secretary of Ecobank Transnational Incorporated (ETI),
the parent company of the Ecobank Group. In this role Mr. Asiedu was Chief
Legal Counsel to both the Board and Management of ETI. Before assuming the
position of Group General Counsel in July 2010, he was Company Secretary and
Head of the Legal Department for Ecobank Gh. In this role, Mr. Asiedu was part
of the Management team that transformed EGH from a two branch Merchant
bank into a Universal Bank with several branches across the country. Other
positions held at EGH include Head of Administration and Head, Legal & Credit
Administration Department. An alumnus of Mfantsipim and Achimota Schools,
Mr. Asiedu qualified as a lawyer in 1989 and is a member of both the Ghana
Bar Association and the International Bar Association. He holds Bachelor of
Arts Degree (Law and Sociology) and Executive MBA both from the University
of Ghana.
Mr. Edward Nartey Botchway - Executive Director
Mr. Edward Nartey Botchway joined Ecobank Ghana in November 2004. He

was appointed Executive Director of Ecobank Ghana (EGH) Finance on 1st
December 2016. He is the Regional Chief Finance Officer for Anglophone West
Africa comprising Ghana, Guinea, Liberia, Sierra Leone and Gambia. He also
holds the position of Regional Chief Finance Officer for Central, Eastern, and
Southern Africa. In 2011, he was transfered to Lome, Togo where he held the
position of Group budget and planning manager - ETI. Outside of Ecobank
Ghana, Edward has held the positions of Executive Director Finance of GCB
Bank, Finance Manager Citi Savings and Loans and Head of Group Loans Citi
Savings and Loans. Edward has over 20 years working experience in the banking
sector. He has also had executive education in strategy and leadership from
Columbia Business School, New York. Mr. Botchway is a Fellow of Association
of Certified Chartered Accountants (ACCA) – United Kingdom, a member of
Institute of Chartered Accountants (ICA) Ghana. He hold a Masters Degree in
Applied Business Research from the Swiss Business School – Zurich Switzerland,
a Postgraduate degree in Contemporary Management from the Nobel Business
School, Accra and a BA Economics from the University of Ghana.

Awuraa Abena Asafo-Boakye - Company Secretary
Awuraa Abena Asafo-Boakye is the Company Secretary and Head of the Legal
Department of Ecobank Ghana Limited. She also has additional responsibility
for the Anglophone West Africa (AWA) region comprising Ghana, Guinea, Liberia,
Sierra Leone and Gambia. She served previously as the Head of Human Resources
of the Bank with oversight responsibility for the AWA region. Prior to joining
Ecobank, she worked as a Legal Practitioner at Sena Chambers, a leading law
firm in Ghana. An accomplished lawyer, Awuraa Abena was recognized in 2015
by Legal 500 as one of the top 100 in-house counsel in Africa. She is a member
of the Ghana Bar Association as well as the International Bar Association. She
serves on several Boards including Ecobank Capital Advisors Limited, Ecobank
Venture Capital Fund 1 and the Board of Trustees for the Ecobank Ghana Tiers
2 & 3 Provident Fund Schemes. Awuraa Abena holds an LLB degree as well as
an Executive MBA (finance) degree from the University of Ghana, Legon. She has
also obtained executive education from the Harvard Business School, Boston
MA and Columbia Business School, New York NY.

MANAGEMENT
TEAM
Daniel Nii Kwei- Morgan Asiedu Edward Botchway

Kumah Sackey Executive Director, Legal, Executive Director, Finance
Managing Director Compliance & Human Resource
Samuel Hiram Yaro Awuraa Abena Asafo-Boakye Tara Squire

Head, Operations & Company Secretary & Head, Legal Head, Consumer Banking
Information Technology

MANAGEMENT TEAM
Daphne Oppong Patrick Bleboo Alfred Sakyi

Head, Human Resource Head, Internal Control Head. Commercial Bank
Joana Mensah Henry Ampong Albert Bartlett-Mingle

Head, Risk Managemnt Head, Corporate Banking Head, Internal Audit
Rita Tsegah John Nyaaba Carl Asem

Head, Venture Capital Head Treasury Business Manager

FINANCIAL
highlights
The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 31 December
Total assets 9,098,140 8,056,870 9,098,692 8,025,510
Loans and advances to customers (net) 2,685,468 3,480,544 2,685,759 3,480,471
Customer deposits 6,541,648 5,416,916 6,447,818 5,316,625
Shareholders’ equity 1,036,927 964,076 1,026,798 952,208
For the year ended 31 December
Revenue 1,116,846 1,206,657 1,115,831 1,201,168
Profit before tax 358,383 462,676 357,760 457,186
Profit after tax 253,645 327,896 255,384 325,594
Dividend per share (Ghana pesewas) - 82 - 82
Earnings per share (Ghana pesewas):
- Basic 87 112 87 111
- Diluted 87 112 87 111
Return on average equity (%) 25 35 26 36
Return on average assets (%) 3.0 4.4 3.0 4.5
At 31 December
Number of staff 1,583 1,617 1,575 1,611
Number of branches & agencies 67 77 67 77

BUSINESS REVIEW
Corporate &
Investment Banking
Corporate and Investment Banking (CIB) is made up Corporate Bank, Transaction Banking and Treasury.
With local experience and international reach, we offer in-depth banking expertise and a range of innovative
banking products and solutions to our Corporate Clients within and outside Ghana. Our services range from
everyday banking to specialist services including Structured Trade Finance, Lending, Cash management and
Foreign Exchange services.
Our experienced team provides tailored services built on a relationship based approach - understanding
customer needs both now and in the future. Corporate bank operates a client-centric approach centered on
the five main business segments below:
• Global Corporates primarily focuses on Global Conglomerates and Multinational Corporations

• Regional Corporates deal with businesses with headquarters and operations in Middle Africa whose
operations are regionally coordinated
• Public Corporates focuses on Parastatal Companies and major state Institutions
• Financial Institutions and International Organization provides world class banking solutions to
Multinational & Bilateral Institutions, Embassies, NGOs etc
• Local Corporates provides tailored financial solutions to local corporates with annual turnover exceeding
$20m
Our Products
Our products are broadly classified into four main categories - Loans & Liquidity, Cash management, Trade
and Fixed Income, Currencies & Commodities (FICC).
• Loans & Liquidity - We support the growth of our customers’ business with customized medium to long
term lending opportunities
• Cash Management - We are experts in providing Collections, Payments and Liquidity Management
solutions to our customers. We design solutions to fit the needs of our customers’ business operations
and focus on achieving process visibility, speed, control and cost reduction in treasury management. We
do these by leveraging varied digital platforms including Ecobank Omni, Internet Banking, BankCollect,
Swift for Corporates, Ecobank Mobile App and Ecobank Scan & Pay. We have the capability to seamlessly
integrate our banking systems to customers operating platforms to ensure all banking activities are
initiated and completed from the comfort of our customers’ offices and even on the go

• Trade Finance - Our team of Trade experts is specialized in providing technical support in structuring
complex Trade deals, advisory services and originating bridge financing. Our electronic Trade platforms;
e-Trade, Trade flux and Finance Supply Chain provide speed-to-market support to our clients. Leveraging
our wide footprints in the sub-region and Africa, we provide unparalleled advantage in Regional trade
business for both traditional trade products (ie. Letters of Credit, Bills for Collections, and Guarantees)
as well as non-traditional and innovative solutions
• Fixed Income - Currencies & Commodities (FICC)- Our Treasury provides integrated solutions tailored to
meet the foreign currency needs of our corporate clients in Africa and beyond. The team is specialized in
offering timely conversions and liquidity management solutions
Custody Business
Our Custody business is well resourced to provide an innovative range of security services regarding both
domestic and cross border processing of trades in securities and safekeeping. This service is available to both
local and foreign institutional clients, and high net worth individuals who wish to have a uniquely designed
transaction solution for their financial assets. The wide range of services provided by custody services
includes:
• Processing of Trade instructions

• Asset safekeeping
• Settlements
• Proxy voting
• Income Payment collection
• Cash Management Services
• Valuation and reporting of financial assets
• Reconciliation of financial assets
• Implementation of corporate actions instructions
• Tax claim and exemption facilitation
The unit provides a core capability that allows the various Business segments to deepen banking relationships
with their clients, while also generating sustainable income and liquidity in a capital efficient manner.

BUSINESS REVIEW
31 %
Corporate &
Investment Banking
Performance in 2017
REVENUE
Despite a challenging economic environment,
Corporate and Investment Bank (CIB) delivered a
credible performance in 2017. Our business model
remained strong, providing a holistic solution for our
local, regional and international clients across our
footprint.
We supported a number of clients, especially in
Contribution from
the Telecom Industry, Oil & Gas, Energy Sector, non-interest income
Manufacturing and Trade & Commerce to expand
their businesses.
We aimed to diversify our revenue sources by focusing Lower volume of assets and downward trend in
on superior service and customer experience to drive interest rates dampened growth from our net interest
transactional income. To achieve this vision, greater income. This notwithstanding, our Corporate Bank
emphasis was placed on accelerating our digital team working with our Investment Banking wing
penetration and onboarding rate on our state-of-the- successfully closed a GHS 510m syndication facility
art payment platform, OMNI to support trade and cash for Scancom Ltd to support their business expansion
management businesses. The number of onboarding program. Additionally, our legacy exposure to the
and transactions on the OMNI platform registered energy sector was successfully restructured against
growth of 27% and a threefold increase year-on-year. bonds and operating cashflows from affected clients.
Similarly, revenue from cash management and trade
fees grew by 7% and 54% respectively, leading to 32% Our Fixed Income, Currencies and Commodities (FICC)
revenue contribution from non-interest income (30% business provides clients with innovative foreign
in 2016). exchange and fixed income solutions, leveraging the
bank’s balance sheet to manage liquidity. In 2017,
Our Cash management solutions provide the requisite we remained focused on Sales, Trading and Balance
digital tools to handle collections and payments sheet management activities. Income from net trading
efficiently in a seamless processing capacity. grew by 4% year-on-year driven by higher volumes and
Complementary to Omni are our host-to-host and positive spreads.
SWIFT integrated solutions which are targeted at
high-volume customers, who process transactions
from shared service centers. In 2017, our innovative
solutions gained industry recognition when we were
awarded the 2016 Best Bank in Cash management and
Trade by Instinct Wave magazine.

2017 Highlights
Revenue 629
612
• Revenue in 2017 was largely impacted by lower 583
asset volumes and margin compression
• The above notwithstanding, we were able to diversify
our revenue sources driven by strong growth in
non-interest income from fees and commission as
well as trading activities
2015 2016 2017
Profit Before Tax

273
• Profit before tax dipped by GHS 51m largely on 253
the back of accelerated provisioning for legacy
exposures within our Energy sector portfolio 202
• Loan impairment loss of GHS 169m recorded
during the year was aimed at cleaning the tail risk
of impaired energy sector exposures
• We have successfully restructured our legacy Energy
sector exposure backed by bonds and anticipate 2015 2016 2017
profit rebound going forward
Loans 3,096
2,657
• Our loan book dipped due to reclassification of 2,629
some energy sector exposure from loans to bonds
under the ESLA vehicle. With the resultant impact
on our interest income, the business focused more
on driving trade and cash management initiatives to
diversify its revenue sources
2015 2016 2017
Deposits 2,446
2,123
• Our deposit volume remained high for most parts 1,924
of the year albeit a marginal reduction at year end
2015 2016 2017
* Amounts in GHS’ million

Dedicated to serving
the non-governmental
public sector
Grow faster. Go further.

With Ecobank’s Commercial Banking Division.
Discover how our tailor-made services and easy- get our customer-first focus and powerful Pan-
to-work-with team can help you streamline your African platform working for you – starting today.
payment and collection processes and extend the
Contact a dedicated Relationship Manager with
reach of your organisation.
non-governmental and public sector expertise at
Whether you’re running a local government CMBGhana@ecobank.com
office, an NGO, hospital, school or faith-based
organisation,
ecobank.com

BUSINESS REVIEW
Commercial
Banking
Commercial Banking (CMB) focuses on nurturing The results of our strategic focus are motivating. At
a thriving and growing Small and Medium-sized the end of 2017, our profit before tax contribution
Enterprise (‘SME’), Local Corporate and Non- to Ecobank Ghana increased from 13.5% in 2016 to
governmental Public Sector clients with a suite of 16.4%. There has also been significant growth in the
specialized services and expertise. Our services number of our customers transacting through our
go beyond traditional bank lending to include digital channels
access to our pan-African footprint and digital
banking platforms, trade finance, liquidity and cash Looking ahead, we are confident that the solid
management, foreign exchange and value chain foundations required to place Ecobank Ghana’s
finance. Commercial Banking business as a strategic
partner for business development is on course. We
The driving force behind this emphasis on are particularly excited about the Lead Ecobank
the CMB target customers is in furtherance of Acceleration Project (LEAP) which is a program
Ecobank’s mission of contributing to the economic aimed at making Ecobank the preferred bank for
development of the African continent and the commercial banking clients across Middle Africa.
recognition of the pivotal role of small and local We remain committed to providing our clients with
businesses in the development of Africa. tailored and responsive customer service, as part of
our vision of empowering Ghana’s entrepreneurs
We have identified three areas of strategic focus to create positive socioeconomic change across our
that will enable us to achieve our medium-term country.
objectives of building local businesses in Ghana:
• Relationship management is at the heart of our

business and we recognise the need to upskill
our staff to enable them play effectively in client
advisory roles
• Driving wider adoption and utilization of digital

channels: We offer a range of online and
mobile tools including Scan+Pay, Retail Internet
Banking, Ecobank Mobile and Omni which are
designed to address the varying needs of our
diverse customer base
• Customer value creation: We seek to

differentiate ourselves and build lasting
relationships by providing our customers with
solutions to their business challenges while
anticipating their changing needs

SME
club activities
1. SME Club Digital Forum
May 4, 2017 | African Regent Hotel, Accra
The Digital Forum is an Ecobank SME Club initiative which hosted a series of interactive educational
seminars with real world examples and technology innovations provided by Ecobank to drive
convenience, productivity and efficiency for our customers.
The Forum provided:

• An Interactive discussion on how technology is transforming businesses to become key players
• Demonstrations and product displays on Ecobank digital products to scale up and transform the
banking operations of businesses
2. African SME Summit
22-23rd November, 2017 | Alisa Hotel, Accra
The SME Club as part of its capacity building agenda sponsored about 50 SME Club members to the
African SME Summit organized by the African SME Organization aimed at helping businesses to scale up
using digital technology to have access to markets globally.
The 2-day Forum was largely patronized with speakers including the Minister of Finance, Head of SME
Banking-Ecobank Ghana Limited and Minister for Business Development, who took the participants
through several discussions bordering on Corporate Governance, Access to Finance, Access to Markets
and how small businesses can leverage on the digital economy to scale up their business.

BUSINESS REVIEW
COMMERCIAL BANKING (CONT’D)
Revenue 228
212
• Headline revenue contracted by 7% year on year to GHc212 million 161
• This was due to downward trends in funded revenues on account of
declining margins on assets. There were, however, strong growths in
FICC and Trade revenues
• Revenue is expected to rebound in 2018 on account of growth in
volume of assets 2015 2016 2017
Profit Before Tax 86
• Profit before tax witnessed a marginal reduction of 5% compared to 62

59
2016 to close 2017 at GHc59 million
• Substantial reduction in impairment partly cushioned PBT from the
full impact of the decline in 2017 revenue
• Contribution to total bank PBT increased from 13.5% in the prior year
to 16.4% 2015 2016 2017
Net Impairment
25
• Net impairment declined by 88% to GHc3.4 million
• Enhanced new asset selection and monitoring mechanism resulted in
lower impairment charges 5 3
• Intensive collection mitigated gross provisions, resulting in a lower
than 2016 net impairment
• CMB’s net impairment as a proportion of total bank reduced to 2.0%
compared to 13.8% the previous year 2015 2016 2017
Deposit 1,323 1,307

• A marginal contraction of 1% brought year end deposit to GHc1.3billion
932
• The drop was occasioned by a reduction in term deposits as the
Unit strategically concentrated on funding its assets from low costs
deposits since this presents a more potent competitive advantage
• Consequently, non-interest bearing deposits constituted 77% of total
deposits of CMB 2015 2016 2017
Loans 387
306 302
• The Unit’s asset size expanded by 28% to GHc387 million
• This was in line with the growth trajectory of the CMB unit
• Overall, the Business was a net supplier of deposit with a loan to
deposit ratio of 29.6%
2015 2016 2017

CONSUMER BANKING
OUR DIGITAL
JOURNEY
The all-new Ecobank Mobile App

Since its launch in November 2016, the evolutionary Ecobank Mobile App has 400,000 users in
Ghana alone. Across Africa, the Ecobank group is focused on financially empowering 100 million new
customers by 2020 with the ultimate result of enabling more Africans gain access to financial tools
using the Ecobank Mobile App.
The Ecobank Mobile App is a unique mobile banking application which gives customers fast, simple,
convenient, secure and free access to their bank accounts whenever, wherever. Unlike most mobile
banking applications available on the market, the Ecobank mobile app enables phone users to simply
download and activate the app using existing Ecobank account details or open a new instant online
Ecobank Xpress Account. The novelty the app offers is the ability of non-customers to instantly open a
digital account known as the Ecobank Xpress Account, on their mobile phone in the shortest possible
time.

The agnostic nature of the App allows customers of other banks to also access the
app using their Visa, MasterCard or Union Pay International card details. What is
more, Ecobank customers in the Diaspora (resident outside the 34 countries) can
also onboard with their international mobile phone numbers and Visa, MasterCard or
Union Pay International card details.
The Xpress Cash function of the app also enables the app user to send money to anyone
without bank account by generating an e-token (8 digit code) which can be used by the
beneficiary to withdraw the cash from any Ecobank ATM nationwide without a card.
This is done using the Card-less function on Ecobank ATMs.
Once activated, users of the app can begin transacting business right-away on this unique
platform without visiting any branch of the bank. Apart from opening the instant account,
users of the Ecobank Mobile App can also pay for goods and services from a variety of
stores and do online shopping using their mobile phone. One can also pay bills (General
Payments, utilities, travel, donations, government collections, Post-Paid Bills, School fees),
top-up airtime , send money to any bank account in Ghana and across 34 countries in Africa,
move money between bank accounts and mobile money wallets, amongst others.
The Ecobank mobile app can easily be downloaded from App Store or Google Play Store.
Once downloaded, Ecobank customers can activate this app, using their account details on
the Ecobank Internet Banking platform or Debit card (ATM Card) details. The app comes in
four languages of; English, French, Spanish and Portuguese.
Users of feature phones (non-smart phones) can also perform these transactions by dialing
*770# and following the appropriate steps
The Ecobank SCAN + PAY (mVISA and MasterPass)
The Ecobank SCAN + PAY is a new electronic payment option that lets customers pay for goods
and services from their mobile phones. All that is required is for consumers to download, activate,
scan (the QR code) and make payments online and at merchant point of sale.
The Ecobank SCAN + PAY delivers enormous benefits for both consumers and merchants of all kinds.
It is fast, secure, convenient, cost-effective, and provides a viable alternative to cash transactions. It
is simply a convenient new way of making safer payments and is available at retail shops, restaurants,
market stalls, mechanic shops, corner shops, food vendors, online shopping and more. Besides
these, transportation service providers, including; inter and intra-city bus service operators, shuttle
services, taxi drivers and trotro drivers can all register for this service from Ecobank. The Ecobank
SCAN + PAY is simply a viable way of extending e-payment services to merchants that are currently
excluded from existing payment solutions available in the market.

The Ecobank Tbill4All
Ecobank is collaborating with MTN to market the Ecobank

Tbill4All to all phone users in Ghana, who are willing and
able to buy Government Treasury Bills from as low as GHS5.
Phone users only need to dial *770# to register and to also
buy and manage Treasury Bills. Registered MTN Mobile
Money users, can register for the Ecobank Tbill4All by dialling
*770# and following the prompts.
The registration is a one-time process only. Once registered

for the service, individuals can immediately purchase the
Government of Ghana 91 and 182 day bills, using the simple
steps above to invest. Clients purchase and manage several
bills as may be convenient to them.
Clients can rediscount any of their investments anytime on their

own. There is an embedded interest calculator that provides
customers with indicative earnings, based on actual previous
interest rates. Clients are also prompted of rediscount proceeds
before confirming their rediscount request. What is interesting
about this product is that individuals can add onto or rollover
investments at maturity without visiting the bank.
In conclusion, our digital journey cuts across the banked and the
unbanked thus providing a bridge for financial inclusion. Our vision
is to make it possible for every Ghanaian to have a bank accounts and
be part of the financial services ecosystem.

CONSUMER BANKING
Revenue 350
293
• Consumer banking made revenue of GHS 293m 279
which was 16% below prior year
• This was mainly due to declining lending rates and
a contraction of the volumes of the remittance
business as well as the rising cost of savings deposits
2015 2016 2017
Profit Before Tax 148

99 97
• The business closed the year with Profits before
tax of GHS 97m. Compared to the prior year, profit
dipped by 34%
• This was due to the shortfalls in revenues as cost
remained largely unchanged
2015 2016 2017
Deposit 2,019
1,723
• Customer Deposits grew by 17% to GHS 2,019m
compared to 2016’s deposit of GHS 1,723m
1,517
• The growth was largely driven by growth in our
savings and current deposits, anchored on our
digital deposit mobilization drive
2015 2016 2017
LOANS 422
276
• Customer loans at the end of the year was GHS 318
276m, representing a 35% decline compared to
2016 actual of GHS 422m
2015 2016 2017

a Word
from our chairman
Fellow Shareholders
Once again, I have the pleasure of welcoming you to our Annual General Meeting, to review our financial
performance for the year ended 2017. Last year was a challenging one for the banking industry due to the
difficult macro-economic environment, characterized by declining yields on financial instruments, high
levels of non-performing loans and increased competition for deposits as a result of the implementation
of the Treasury Single Account policy by the Government. The above notwithstanding, your Bank has
been able to weather the storm and remains profitable.
The Government has taken the first steps to the resolution of the energy sector debts situation through
engagement of key stakeholders and the issuance of two long-term bonds under the Energy Sector Levy
Act (ESLA). The Central Bank has also strengthened its supervisory, regulatory and compliance stance.
More importantly, your Board has worked closely with executive management to tackle these challenges
head on. We remain focused on forging ahead with our digital agenda and the business of creating value
for our customers and you our shareholders, despite the vagaries of the economic cycle or challenging
economic environment.
2017 PERFORMANCE
The macroeconomic environment affected our and Boards of directors for public corporations.
financial results in various ways. Interest rates Finally the delayed resolution of the energy sector
continued their downward trend on the back of debts created asset quality challenges for the banking
lower Government borrowings, impact of the sector. The Bank responded to these developments by
implementation of the Treasury Single Account and tightening of credit underwriting standards and taking
the refinancing of maturing short term debt for longer a higher than expected charge of GHS174 million for
tenors and at more favourable rates. The first half loan impairments.
of the year also witnessed a slowdown in economic
The declining interest rate environment was evidenced
activities as the new Government navigated the
by the 330 basis points drop in the benchmark 91- day
process of appointments of cabinet ministers, heads
Treasury Bill to 13.01% at the end of 2017 while the

Terence Darko
Board Chairman
Central Bank reduced the policy rate by 550 basis points over the same period. As a result, our total revenues
fell by 7% to GHS 1.1 billion on the back of relatively flat Net Interest Income, which constitutes 67% of our total
earnings. This was partially offset by stronger performance of Net Fee and Commission income driven by resilient
trade and cash management revenues.
Our investment in technology, people and processes have enabled us to extend the reach of our service delivery
points from the branches to the various electronic channels. Our Deposits grew by 21%, significantly higher than
the average industry growth rate of 12.6 %, a reflection of the improved value proposition and customer care.
These positive developments also reflected in the 26% growth in Net Fee and Commissions income to GHS199
million in 2017.
Ecobank generated earnings per share (EPS) of GHS0.87, a decline of 22% compared with the GHS1.12 reported in
2016. Return on total shareholders’ equity (ROE) was 25% in 2017 versus 35% in the prior year. Profit attributable
to shareholders amounted to GHS254 million, compared to GHS328 million in 2016. The lower earnings figures

is attributable to the decline in revenues caused primarily by the one-off gains from derecongnition of financial assets
measured at amortised costs in 2016 which was not present in 2017. As you will recall from our last AGM, these gains were
energy sector related.
The cost base remained fairly stable, growing by just 3%, this is significantly lower than most of our peers who reported
cost growths in the ranges of 15% to 20%. However the decline in revenues resulted in a cost-to-income ratio (CIR) of
52.4%. Our balance sheet is healthy, with a total capital adequacy ratio (CAR) of 13.76%, which is above the regulatory
threshold of 10%.
Going forward, we expect a boost in business confidence as the declining interest rate regime translates into lower cost of
production and increased productivity for our clients. The reduced cost of doing business should in turn lead to enhanced
business opportunities for both our clients and the bank. We are confident that further gains can be made by way of
increased efficiencies as your management team continues to work hard to diversify and improve its revenue streams.
DIVIDEND
The Board recognises the importance of dividends to our shareholders and is committed to paying the maximum
sustainable dividends. However, as will be further explained in the Managing Director’s statement, we propose
to capitalise our income surplus into stated capital to enable us to meet the new minimum capital requirements
for banks of GHS400 million, set by the Bank of Ghana. As a result we are unable to pay cash dividend for the
year 2017. We will however be issuing bonus shares of one share for every ten held, which in addition to the
capital gains made on our stocks of 53% as at February 2018, is a big boost to our shareholders.
The Board, working closely with the executive management team, is confident that the strategy currently being
implemented will underpin the long-term growth of your Company and should lead to the resumption of cash
dividend payment in the near future.
BOARD CHANGES
Mr. Thomas Awagu resigned from the board in May 2017 after 6 years of invaluable service to Ecobank Ghana.
We thank him for his contribution.
We also appointed Mr. Henry Dodoo-Amoo, Dr. Ohene Aku Kwapong and Dr. John Ofori-Tenkorang as non-
executive directors during the year. These gentlemen have combined expertise that embrace risk management,
strategy implementation, sales, governance, investment banking and more. (Please refer to their detailed
profiles in the annual report). I believe that their extensive experience and business acumen will be vital to the
next phase of our journey as the premier bank in Ghana.
SOCIAL RESPONSIBILITY
Ladies and gentlemen, at Ecobank Ghana, we have always aimed at conducting business in a manner that creates
value for our customers, shareholders, employees and the communities that we serve. Whilst we understand
that the needs of shareholders are of primary importance, this has to be balanced with our corporate social
responsibility (CSR).
During the year we supported various initiatives on maternal health and education through our flagship CSR
activity, dubbed “Ecobank Day”. On that day, we donated a wide range of medical equipment to health facilities

A WORD FROM OUR CHAIRMAN
across the country that play a key role in the delivery of healthcare to Ghana’s women. Amongst the hospitals
that received donations were the Korle Bu Teaching Hospital’s Maternity Ward in Accra, the Maternal and Child
Health unit at the Tema Polyclinic, Kumasi South Hospital, Kwesimintsim Hospital in Takoradi and Savelugu
Hospital. Our staff also visited mothers on admission at the various hospitals and donated items to them.
In the area of education, we donated 15 serviced computers for an ICT lab, as well as career development books,
to Three Town Secondary School in Aflao. In addition, 25 bright but underprivileged students, selected from
various secondary institutions across the country were awarded scholarships.
Our annual blood donation exercise carried out across our key locations in Accra, Tema, Kumasi, Takoradi and
Tamale, yielded over 500 pints of blood for the National Blood Bank.
Other organisations that benefitted from our CSR activities in 2017 included:
• The National Diabetes Association: to which we presented over 600 Glucose test strips
• The Children’s Heart Foundation: to which we contributed the full cost of surgery for two children with
‘Hole in Heart’ conditions. Over the years Ecobank has sponsored this procedure for 17 children through the
Children’s Heart Foundation.
• Ghana Medical Students: Ecobank supported 30 medical students by subsidising the cost of their exchange
programmes to various countries as part of their curriculum for completing medical school.
• The National Malaria Control Programme: We presented over 2,000 treated mosquito nets to the National
Malaria Control programme to support the national fight against malaria
• Village of Hope Orphanage: Ecobank also sponsored the school fees of 15 orphans at the Village of Hope
orphanage
AWARDS
Dear shareholders, I am delighted to inform you that Ecobank Ghana was adjudged the Best Bank in Ghana by
three leading award bodies: Corporate Initiative Ghana (CIG), the Chartered Institute of Marketing Ghana (CIMG),
and Euromoney. Accordingly, your bank, Ecobank Ghana, for the second time, stands as the only Ghanaian bank
to earn all three prestigious awards in a single year. We are extremely proud of this achievement. CIG also
awarded us the ‘Best Bank in Financial Performance’ and ‘Corporate Social Responsibility’.
My congratulations goes to the management and staff for all their hard work and commitment.
CONCLUSION
Ladies and gentlemen, you will agree with me that the Ecobank brand remains strong. We are determined to
continue projecting our brand values and shaping the banking landscape in Ghana. Our staff and management
are galvanised around the singular goal of providing accessible and convenient banking services to our
customers, whilst focusing on reinstating cash dividend payments to our shareholders.
The Board is committed to establishing the highest standards of corporate governance that enables effective
decision-making, with clear responsibilities.
I appreciate the support of the Board during the year and I am grateful for the continued confidence of all of our
stakeholders. Most importantly, I thank God for seeing us through a challenging, but successful, year.
Thank you and may the Good Lord bless us all

Dan Sackey
Managing Director

MANAGING
DIRECTOR’S
ADDRESS
Dear Shareholders,
It is my great pleasure to again welcome you all to our Annual General Meeting and to report on your
Bank’s progress in 2017, which must be viewed against the backdrop of a challenging economic climate
that has negatively impacted asset quality throughout the banking industry. Ghana is in the final year of
its three-year US$918 million IMF credit facility program. Under the program, the government has so far
implemented various initiatives aimed at fiscal consolidation. Key among them include the introduction
of the Treasury Single Account (TSA), restructuring of debt towards cheaper external borrowing and
longer maturity profile which resulted in lower interest rates during the year. Similarly, structural moves
towards more efficient revenue collection via the National identification and address systems, and the
National Single Window platform is expected to improve revenue generation in the long term.
The Bank of Ghana, our regulator, has issued new directives concerning minimum capital requirement
and corporate governance, with the aim of strengthening the industry, but which also have the potential
to dampen future returns on investment at least in the short term. The delayed resolution of the Bulk
Oil Distribution Companies (‘BDCs’) loan book continues to have an adverse impact on asset quality
across the sector. Consequently, the industry’s average gross non -performing loan (NPL) ratio, which
amounted to 17.3% at year-end 2016, escalated further to 21.6% in 2017.
Overall, the banking sector continues to be liquid, profitable and solvent although asset quality remains
a concern.

UPDATE ON OUR DIGITAL STRATEGY
I updated you last year on our digital strategy and the initiatives we
were implementing in that regard. I am pleased to inform you that
55 %
barely a year after the launch of our digitization drive and adoption of
mobile technologies, Ecobank has become Ghana’s leading bank in the
digital space.
GHS 612m
Our new range of digital offerings including the Ecobank Mobile App,
Scan+Pay, Tbill4All, Xpress Account, ABMT and Rapid transfer Mobile
have all enjoyed enormous patronage across the market. Not relenting
on our oars, we have subsequently upgraded our Mobile App with
additional functionalities, including cardless withdrawals from our ATMs, Corporate & Investment
acquisition of other bank cards, withdrawals from agents, attachment Bank Contribution
of cards, and person-to-person mobile transfers from VISA cards (mVisa
P2P), Additionally, we extended the scope of our QR product to accept
both Master and Visa cards, and rebranded it as Ecobank ‘Scan and Pay’.
Today, we have over 500,000 subscribers on our mobile app. Our

flagship corporate payment platform; OMNI has been well received
26 %
by our corporate clients and currently boasts of an estimated annual
transaction value of GHS12.3 billion in 2017
We have also broadened our bancassurance product suite with the GHS 292m
addition of non-life insurance products working with our partners in
the bancassurance space.
I am delighted at the progress we have made so far and I am confident

that as we consolidate the gains from these numerous initiatives we will Consumer
continue to return value to our shareholders Contribution
FINANCIAL REVIEW
In 2017, despite the challenging environment, your bank recorded total

revenue of GHS1.1 billion, keeping our market leadership in revenue
19
terms, although this was lower by 7% compared to 2016. The slight drop
in revenue was as a result of the declining interest rate environment
driven in turn by the successful implementation of the TSA impacting our
%
net interest income. Furthermore, the one-off gains from de-recognition
GHS 212m
of financial assets measured at amortised costs in 2016 which was
not present in 2017 impacted our revenue performance. Accelerated
recognition of impairment charges of GHS174 million related mainly
to legacy loans in the oil and gas sector due to continuing delays in the
resolution of the legacy BDC debt. Commercial Bank
Contribution
The above factors resulted in profit before tax of GHS358 million
compared with GHS463 million for the previous year. This translate into

MANAGING DIRECTOR’S ADDRESS
earnings per share of GHS 0.87 compared to GHS SHAREHOLDER RETURNS – 2017
1.12 in the prior year. Consequently, the return RECAPITALISATION OF RETAINED
generated on average total equity, fell to 25% EARNINGS DUE TO TIGHTENING OF
from 35% in 2016. REGULATORY FRAMEWORK
Despite the adverse impact on topline performance, Dear Shareholders, as you are all aware, the
we maintained our market leadership in customer Bank of Ghana has issued a directive for all banks
deposits with a growth of 21%. This is a testament in the country to increase their stated capital
of the confidence reposed in the Ecobank brand to a minimum of GHS400 million by the end of
by our customers, and the success of our digital 2018, from the current GHS120 million. Ecobank
and cash management value proposition. Ghana currently has a stated capital of GHS226
million and total shareholder funds of GHS1.0
The issuance of bonds to cover loans extended to billion. To enable us meet this new requirement,
state owned entities in the energy sector resulted in without raising new capital, we will need to
the reclassification of loans to the tune of GHS679 recapitalise our retained earnings, out of which
million. This together with the tightening of our dividends are normally paid, as stated capital. As
credit screening process in the face of challenges a result, we will not be paying cash dividend to
in the oil and gas portfolio resulted in decline in our shareholders for the 2017 financial year.
net customer loans by 23% from GHS3.48 billion
in 2016 to GHS2.68 billion in 2017. However, I am pleased to inform you that we
will be issuing bonus shares of one share for
In terms of business unit contributions to total every ten held (1:10) on all existing shares. This
revenues, Corporate & Investment banking is in addition to the excellent performance of our
accounted for 55%, with Consumer banking, and shares on the Ghana Stock Exchange, which as
Commercial banking contributing 26% and 19% at February 2018 had made returns of 53% and
respectively. outperformed the GSE Composite Index (29%)
and the GSE Financial Stock Index (35%) over the
We made significant progress in cost reduction same period.
and improved operational efficiency through
headcount reductions, network rationalisation, IFRS 9 – FINANCIAL INSTRUMENTS
vendor contract renegotiations, enhanced
procurement procedures and process automation. There has been a number of revisions to the
The marginal increase of 3% in our total operating International Financial Reporting Standards
cost is significantly lower than the year end (‘IFRS’) since they were adopted by the Ghanaian
inflationary rate of 11.8% as reported in 2017 and banking industry in 2007. The most significant
is evidence of the success of our cost management of these, which became effective from January
initiatives. Going forward, we expect our right- 2018, is IFRS 9 – Financial Instruments. This
sizing initiatives, notably unification of branches standard, which replaces IAS 39 - Financial
within close proximity and staff rationalisation, to Instruments – Recognition and Measurement;
impact positively on our cost base and efficiency introduces more stringent principles for the
levels even further. classification, measurement and impairment of
financial instruments, including loans. We have
worked diligently to ensure we are ready for
these changes and have assessed their impact on
our Statement of Financial Position and Income
Statement; the results of which are disclosed in
detail in our Financial Statements.

PEOPLE trade and cash management capabilities for
increased non-interest income.
Our people continue to be our most valuable
assets, and their commitment to diligence In this low interest rate environment, we have to
over the years has undoubtedly been a major take risks but balanced with returns by ensuring
contributory factor to Ecobank Ghana’s that our risk management practices and systems
continuous success. We recognize however, that are robust enough to identify, measure, and
the global banking industry needs to be more monitor the various risks associated with our
efficient as business processes increasingly business. We will continue to invest in an agile
trend towards digitization. risk management framework with a prudent
approach to credit loan extension that supports
In Ecobank, our digitization drive has resulted strong business growth.
in improved convenience and accessibility for
our customers. Currently, about 77% of our IN CLOSING
customer transactions are executed through our
digital channels. We at Ecobank are grateful to God for how far He
has brought us. I thank our Board of Directors for
However, as our digitization drive accelerates, their dedication and commitment to furthering
it has become necessary for us to review our the market leadership of this institution. I thank
brick and mortar presence. We will continue to our parent company, Ecobank Transnational
re-evaluate our business operating model to Incorporated, for their immense support
identify opportunities for continuous success. throughout the year, particularly in supporting
our digital transformation agenda.
LOOKING AHEAD
My heartfelt thanks go to the entire staff for their
Ghana’s banking industry remains highly willingness to embrace innovation with a ‘can-
fragmented, consisting of numerous small do’ attitude, whilst clinging to our core values
operators with less than 5% market share of service excellence and placing our customers
in terms of assets and deposits. The new first.
regulatory minimum capital requirement is
expected to engender some consolidation across Finally, on behalf of the management and staff,
the industry as under-capitalised banks are likely I thank all our customers for their continued
to merge to be able to meet the new regulatory loyalty to the Ecobank brand.
requirements. This expected consolidation if
executed successfully will fundamentally alter Thank you all
our competitive landscape with the emergence
of financially stronger indigenous banks.
Our strategic focus for 2018 is to retain our

market leadership. We are also seeking to
achieve customer migration towards our
electronic channels, and to further improve our
process efficiency by eliminating redundancies
and employing enterprise-wide automation.
Additionally, we are making strides to grow our

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DIRECTORS’
report 2017
The Directors submit their report together with the consolidated and separate
financial statements for the year ended 31 December 2017.
RESPONSIBILITY STATEMENT
The Directors are responsible for the preparation enable the preparation of financial statements that
of consolidated and separate financial statements are free from material misstatement, whether due
that give a true and fair view of Ecobank Ghana to fraud or error, and for maintaining adequate
Limited comprising the statements of financial accounting records and an effective system of
position as at 31 December 2017 and the risk management. The Directors have made
statements of comprehensive income, changes in an assessment of the ability of the Bank and its
equity and cash flows for the year then ended and subsidiaries to continue as going concerns and
the notes to the financial statements which include have no reason to believe that the businesses will
a summary of significant accounting policies not be going concerns in the year ahead.
and other explanatory notes, in accordance with
International Financial Reporting Standards and in The auditor is responsible for reporting on
the manner required by the Companies Act, 1963 whether the consolidated and separate financial
(Act 179) and the Banks and Specialized Deposit- statements give a true and fair view in accordance
Taking Institutions Act 2016 (Act 930). In addition, with the applicable financial reporting framework
the Directors are responsible for the preparation and laws and regulations.
of the Report of the Directors.
The Directors are also responsible for such internal

control as the Directors determine is necessary to

PRINCIPAL ACTIVITIES
The Bank is registered to carry on the business of banking. Its principal activities comprise corporate,
investment and retail banking. It also engages in investment and advisory services, management of
investments on behalf of customers and provision of operating and finance lease facilities through its
subsidiaries. There was no change in the nature of business of the Bank’s business during the year.
FINANCIAL STATEMENTS AND DIVIDEND
The financial results of the Bank for the year ended 31 December 2017 are set out in the attached
financial statements, highlights of which are as follows:
2017 2016
GH¢’000 GH¢’000
Profit after tax (attributable to equity holders) 255,384 325,594

to which is added the balance brought forward
on income surplus account of 260,078 263,775
515,462 589,369
out of which is transferred to the statutory reserve
fund in accordance with the Banking Act an amount of (31,923) (40,700)
transfers to the credit risk reserve of (44,310) (42,279)
and dividend paid of (240,447) (246,312)
(316,680) (329,291)
leaving a balance to be carried forward in the

Income Surplus account of 198,782 260,078
In accordance with section 34 (1b) of the Banks and Specialized Deposit-Taking Institutions Act 2016 (Act
930), an amount of GH¢31.9 million (2016: GH¢40.7 million) was transferred to the statutory reserve
fund from the income surplus account bringing the cumulative balance on the statutory reserve fund at
the reporting date of 31 December 2017 to GH¢354.5 million (2016: GH¢322.6 million).
The Directors do not recommend any dividend payment (2016: 82 Ghana pesewas per share amounting
to GH¢240,447,265.04).
The Directors consider the state of the Bank and the Group’s affairs to be satisfactory.

DIRECTORS’ REPORT
OBJECTIVES OF THE BANK
The objective of the Bank is to build a world-class bank seeking to provide its customers with convenient
and reliable banking and financial products and services both locally and regionally.
SUBSIDIARIES AND ASSOCIATES
Subsidiaries
The Bank has the following wholly owned subsidiaries, which are incorporated in Ghana and provide
the following services:
• Ecobank Investments Managers Limited - Management of investments

• Ecobank Leasing Company Limited - Finance lease facilities
• Ecobank Venture Capital Fund 1 Limited - Venture capital
• Ecobank Capital Advisors Limited - Fund management
Associate
The Bank holds 49% interest in Pan African Savings and Loans Company Limited, a company incorporated
in Ghana which provides microfinance to small and medium-sized enterprises.
RELATED PARTY TRANSACTIONS
Information regarding Directors’ interests in ordinary shares of the Bank and remuneration is disclosed
in Appendix I and note 44 to the financial statements respectively. Apart from the parent company (ETI
shares) no Director has any other interest in any shares or loan stock of any Group company. Other
than service contracts relating to appointment agreements, no Director had a material interest in any
contract to which any Group company was a party during the year. Related party transactions and
balances are also disclosed in note 44 to the financial statements.
AUDITOR
The Audit & Compliance Committee has responsibility delegated from the Board of Directors for making
recommendations on the appointment, reappointment, removal and remuneration of the external
auditor. Messrs KPMG has been the auditor of the Bank commencing with the financial statements for
the year ended 31 December 2011. The auditor, KPMG, will not continue in office in accordance with
Sections 81(4) and 81(5) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) with
effect from May 2018 after seven (7) years of service as auditor. In their stead, PwC, whose previous
engagement with the bank ended in May 2011, has been appointed in accordance with Section 134 (1)
of the Companies Act, 1963 (Act 179). Fees for approved non-audit services amounted to GH¢114,769.

DIRECTORS’ REPORT
BOARD OF DIRECTORS - PROFILE
Non-Executive Qualification Outside Board and Position Held

Management position
Terence Ronald Darko BSc Business Studies Mechanical Lloyd Company Managing Director
Private Enterprises Federation Director
Edendale Properties Limited Director
Martin Eson-Benjamin BSc Admin-Mgt CFAO Ghana Limited Director

Enterprise Group Limited Director
Enterprise Properties Limited Director
A&C Dev Company Limited Director
Enterprise Insurance Co Limited Director
Advisory Board, College of Health
Sciences, University of Ghana Chairman
Millennium Development Authority Director
Felicity Acquah BA (Hons) Bayport Financial Services Limited Director

Economics & Law Camelot Company Limited Director
EMBA Finance
Samuel Ashitey Adjei BSc Statistics Ecobank Cameroon Director

MBA Finance Ecobank Zimbabwe Director
Ecobank Kenya Managing Director
eProcess International SA Director
Rosemary Yeboah BA (Hons) Economics

MA, Economics EDC Stockbrokers Limited Director
MBA
Henry Dodoo-Amoo MBA Theovision International Director
John Ofori-Tenkorang Bsc Engineering Ghanaian National Committee Chairman

Msc Engineering of United World Colleges
Sc. D Electrical
Engineering & Computer Social Security and National Insurance Director
Science Trust (SSNIT)
Ohene Aku Kwapong BSc Chemical Engineering Nordicom A/S (NASDAQ OMX), Denmark Director
MSc Chemical Engineering New York City Economic Development
Practice Corporation, New York, NY Director
MBA, Finance/Financial
Engineering
PhD Chemical Engineering

Executive Qualification Outside Board and Position Held
Management position
Daniel Nii Kwei-Kumah BSc Administration eProcess International SA Director

Sackey MBA Ecobank Guinea Director
Ecobank Liberia Director
Ecobank Investment Managers Limited Chairman
Ecobank Leasing Co Limited Chairman
Ecobank Venture Capital Fund 1 Chairman
Ecobank Capital Advisors Limited Chairman
Morgan Fianko Asiedu BA (Hons) Law & Sociology Abba-Ponenna Limited Chairman
EMBA Entrepreneur Pioneers Ghana Scripture Union Director
Edward N. Botchway BA (Hons) Economics Ecobank Investment Managers Limited Director

M Phil (Applied Business Ecobank Venture Capital Fund 1 Director
Research) Ecobank Leasing Company Limited Director
CA (Ghana) Member Ecobank Capital Advisors Limited Director
FCCA (UK) Eximguarantee Company Ltd Director
BIOGRAPHICAL INFORMATION OF DIRECTORS

Up to 40 Above 60
Age 41 - 60
Years Years
N/A 8
Directors
3
Directors

Role
of the board
The Directors are responsible for the long term success of the Bank. They determine the strategic
direction of the Bank and review operating, financial and risk performance. There is a formal schedule
of matters reserved for the Board of Directors, including approval of the Bank’s annual business plan,
strategy, acquisitions, disposals and capital expenditure projects above certain thresholds, treasury
policies, the financial statements, the Bank’s dividend policy, transactions involving the issue or purchase
of shares, borrowing powers, appointments to the Board, alterations to the regulations, legal actions
brought by or against the Bank and the scope of delegations to the Board and Board committees.
Responsibility for the development of policy and strategy and operational management is delegated to
an executive management committee, which as at the date of this report includes three (3) executive
directors and twelve (12) senior managers.
INTERNAL CONTROL SYSTEMS
The Directors have overall responsibility for the Group’s internal control systems. The Directors annually
review the effectiveness of internal controls, including a review of financial, operational, compliance and
risk management controls. The implementation and maintenance of the risk management and internal
control systems are the responsibility of the Executive Committee. The systems are designed to manage
rather than eliminate the risk of failure to achieve business objectives and to provide reasonable,
but not absolute, assurance against material misstatement or loss. The Directors have reviewed the
effectiveness of the internal control systems, including controls related to financial, operational and
reputational risks identified by the Bank as of the reporting date and no significant failings or weaknesses
were identified during this review.
DIRECTORS’ PERFORMANCE EVALUATION
Every year the performance and effectiveness of the Board of Directors (the Board), its committees
and individual directors are evaluated. The evaluation is conducted by the completion of detailed
and comprehensive written survey questionnaires. The results of the evaluation are shared with all
members of the Board.
The Board and all Directors are also periodically evaluated by an independent external firm in order to
assess the effectiveness of the Board as well as the contribution of the individual Directors. Overall, it
was noted that the Board of Directors and its committees were operating in an effective manner and
performing satisfactorily, with no major issues identified.

DIRECTORS’ REPORT
PROFESSIONAL DEVELOPMENT AND TRAINING
On appointment to the Board, Directors are provided with a full, formal and tailored programme of
induction to familiarize them with the Bank’s businesses, the risks and strategic challenges the Bank
faces, as well as the economic, competitive, legal and regulatory environment in which the Bank operates.
A programme of strategic and other reviews, together with the other training provided during the year,
ensures that Directors continually update their skills and knowledge of the Bank’s businesses, and the
sectors in which the Bank operates and familiarizes themselves with risk, regulatory, legal, financial and
other developments to enable them to fulfil effectively their role on the Board and its committees.
CONFLICTS OF INTEREST
The Bank has established appropriate conflicts authorization procedures, whereby actual or potential
conflicts are regularly reviewed and authorizations sought as appropriate. During the year, no such
conflicts arose and no such authorizations were sought.
BOARD BALANCE AND INDEPENDENCE
The composition of the Board of Directors and its committees is regularly reviewed to ensure that the
balance and mix of skills, independence, knowledge and experience is maintained. The Board considers
that the Chairman is independent on appointment and all non-Executive Directors are independent as it
pertains to the management of the Bank. The continuing independent and objective judgement of the
non-Executive Directors has been confirmed by the Board of Directors.
CORPORATE SOCIAL RESPONSIBILITY
Corporate responsibility activities can be found at note 48.
HOLDING COMPANY
The Bank is a subsidiary of Ecobank Transnational Incorporated (ETI), a company incorporated in the
Republic of Togo. ETI owns 68.93% of the issued ordinary shares of the Bank.
APPROVAL OF THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
The consolidated and separate financial statements of Ecobank Ghana Limited were approved by the
Board of Directors on 26 February 2018 and signed on their behalf by
CHAIRMAN MANAGING DIRECTOR

CORPORATE
governance
COMMITMENT TO CORPORATE GOVERNANCE
Corporate Governance is important to Ecobank as it seeks to implement the ideals of fairness,
transparency, accountability and responsibility in its dealings with all stakeholders. Ecobank recognizes,
as a banking group, the critical nature of its relationships with its Regulators across the Group, in
executing its vision and safeguarding the deposits of the general public and other lenders. To this end,
Ecobank ensures that their interests are taken into account in a balanced and transparent manner.
Ecobank believes that, only good governance can deliver sustainable good business performance.
The Ecobank Group Corporate Governance Charter sets out the structures and processes that are
followed by the Group to build credibility, ensure transparency and accountability across the group.
As members of the Ecobank Group, Ecobank Ghana and its subsidiaries operate according to the
Ecobank Transnational Incorporated (ETI) Group principles and practices on corporate governance. The
principles and practices therein are based on the Basel Committee standards on corporate governance,
which constitute the best of international practice in this area.
The key guiding principles of the Group’s governance practices are as follows:
• Good corporate governance enhances shareholder value
• The respective roles of the shareholders, Board of Directors and management in the governance
architecture should be clearly defined
• The Board of Directors should have majority membership of independent Directors, defined
broadly as “Directors who are not employed by the Group or who are not affiliated with
organizations with significant financial dealings with the Group”
These principles have further been articulated in a number of corporate documents including the Bank’s
Regulations, Rules of Procedures for Boards, Code of Conduct for Directors and Rules of Business Ethics
for staff.

CORPORATE GOVERNANCE
THE BOARD OF DIRECTORS GOVERNANCE COMMITTEE
The Board is responsible for setting the This Committee is chaired by Mr. Terence Darko
institution’s strategic direction, leading and (the independent non-executive Board Chairman)
controlling the Bank and monitoring activities of and has as its members, Mrs. Felicity Acquah, Mr.
executive management. Martin Eson –Benjamin. Mr. Henry Dodoo-Amoo
and Dr. Ohene Aku Kwapong. The Committee met
As of 31 December 2017, the Board of Directors four times in the year ended 31 December 2017.
of Ecobank Ghana consisted of eleven (11)
members made up of an independent Non- The role of the Committee includes:
executive Chairman, seven (7) Non-executive
Directors, five (5) of whom are independent • Handling relationships with regulators and
and three (3) Executive Directors. These board third parties
members have wide experience and in-depth • Handling relationships with shareholders
knowledge of management, industry and the • Evaluating the performance of Board
financial and capital markets, which enable members and various committees
them make informed decisions and valuable • Reviewing all issues relating to good
contributions to the Bank’s business. governance; and
• Reviewing and recommending the
Regarding term limits, a non-executive director appointment of Directors
shall be elected for a period of 3 years at a time
and shall be eligible for re-election provided The role of the Governance Committee with
that no individual shall serve as a director for a regards to Human Resources includes:
cumulative period of more than nine (9) years.
A person who is more than 70 years old shall, • Periodically reviewing the organizational
subject to local laws retire at the next Annual structure of the Bank to ensure it conforms
General Meeting following his/her 70th birthday. to the standard Group structure
An Executive Director shall retire as Director • Setting criteria, in line with Group policies,
upon attaining the mandatory retirement age for for recruitment of staff
employees or on termination of their employment • Ensuring human resource management
for whatever reason. The term of the Chairman policies align with the Group Human
shall not exceed six (6) years. Resource policies
• Evaluating the performance of management
The Board has adopted standard evaluation tools staff and making recommendations for
that help assess the performance of the Board, approval by the Board
its committees and individual members on an • Recommending disciplinary actions against
annual basis. erring management staff
• Recommending appropriate levels of
The Board and all Directors are also periodically remuneration and packages for staff
evaluated by an independent external firm in • Reviewing succession plan for key positions;
order to assess the effectiveness of the Board as and
well as the contribution of the individual Directors • Any other responsibilities as may be assigned
The Board met four (4) times during the year. by the Board.
The Board has delegated various aspects of its
work to the Governance, Audit and Compliance,
Credit and Risk Management Committees.

AUDIT AND COMPLIANCE COMMITTEE
The Audit and Compliance Committee has as its Chairperson, Mrs. Felicity Acquah, an independent non-
executive Director.
This Committee includes three (3) other non-executive members of the Board namely Mr. Terence
Darko, Mr. Martin Eson-Benjamin and Dr. John Ofori-Tenkorang. The Managing Director, Chief Finance
Officer, Internal Auditor and if need be, a representative of the external auditors, sit in attendance. The
Committee met four (4) times in the year ended 31 December 2017.
The role of the committee includes:
• Reviewing the internal audit function, its mandate and audit activities
• Reviewing internal and external audit reports, particularly reports of regulatory and monetary
authorities and supervising the implementation of recommendations
• Facilitating dialogue between auditors and management on the outcome of audit activities
• Proposing external auditors and their remuneration
• Working with the external auditors to finalize the annual financial statements for Board approval
• Reviewing the dividend policy and issues relating to the constitution of reserves
• Reviewing quarterly, half-yearly and annual financial results before the Board’s review and
approval
• Setting up procedures for selecting suppliers, consultants and other service providers and
ensuring compliance therewith
• Organizing periodic discussions with the departments of Internal Audit and Finance
• Defining appropriate measures to safeguard assets of the Bank
• Ensuring compliance with all applicable laws and regulations and operating standards
• Reviewing, approving and following up major contracts, procurement and capital expenditures
• Reviewing actual spending against budget; and
• Reviewing and approving proposals for extra-budgetary spending
EXTERNAL AUDITORS
External auditors are appointed through a bidding process and on a rotational basis for a period outlined
by the Bank of Ghana’s regulations. The external auditors present and discuss their audit findings with
the Board and Audit & Compliance Committee.
INTERNAL AUDITORS
The Internal Audit function of the Bank reports directly to the Board Audit Committee. Internal Audit
provides independent, objective audit assurance designed to add value and improve the Bank’s
operations while ensuring the effectiveness of risk management, control, and governance processes.
The Internal Audit department presents its reports to the Board Audit and Compliance Committee.

Risk management
committee
The Committee has as its Chairman, Mr. Henry Dodoo-Amoo. Other members are Dr. Ohene Aku
Kwapong and Mrs. Rosemary Yeboah. The role of the committee includes:
• Reviewing and approving risk policy changes initiated by Management

• Ensuring compliance with the Bank’s risk policies and statutory requirements prescribed by the
regulatory or supervisory authorities
• Reviewing periodic risk management portfolio reports and assess portfolio performance
• Reviewing operational, market, reputational and legal risk management
• Approving all credits within limits defined in Group Credit Policy and within the statutory
requirements set by the respective regulatory and supervisory authorities
• Reviewing and endorsing credits approved by executive management
• Reviewing and recommending to the full Board, credit policy changes initiated by executive
management
• Ensuring compliance with the Bank’s credit policies and statutory requirements prescribed by
the regulatory and supervisory authorities
• Reviewing periodic credit portfolio reports and assessing portfolio performance; and
• Approving exceptions, write-offs and discounts of non-performing credit facilities
BUSINESS CONTINUITY PLAN
The Bank has a business continuity and disaster recovery plan for its Head Office and branches that will
enable it respond to unplanned significant interruptions in essential business functions that can lead to
the temporary suspension of operations. It provides guidelines to fully recover operations and ensure
coordinated processes of restoring systems, data and infrastructure to enable essential client needs to
be met until normal operations are resumed. The plan is tested at least three times every year to assess
the readiness of the Group to respond to unplanned interruptions of operations.
SYSTEMS OF INTERNAL CONTROL
The Bank has a well-established internal control system for identifying, managing and monitoring
risks. These are designed to provide reasonable assurance that risks faced by the Bank are reasonably
controlled. The corporate internal audit and compliance function of the Bank plays a key role in providing
an objective view and continuing assessment of the effectiveness of the internal control systems in the
business. The systems of internal control are implemented and monitored by appropriately trained
personnel, with clearly defined duties and reporting lines.

CORPORATE GOVERNANCE
CODE OF BUSINESS ETHICS
Management has communicated principles in the Bank’s Code of Conduct to its employees to provide
guidance in the discharge of their duties. This Code sets the standards of professionalism and integrity
required for the Bank’s operations. It covers compliance with applicable laws, conflicts of interest,
environmental issues, reliability of financial reporting, bribery and strict adherence to laid down
principles, so as to eliminate the potential for illegal practices.
WHISTLE BLOWING POLICY
The Bank believes in and has adopted the highest standards of ethical behaviour to ensure that any
form of malpractice is dealt with and mitigating action taken. Employees are therefore encouraged
to uphold these virtues by always acting in good faith and also alerting the appropriate authority of
any identified malpractice, concern or suspicious activity or behaviour within the Bank. In all cases,
employees who blow the whistle in good faith about perceived malpractices or concerns within the Bank
shall be protected by the Bank. The Bank shall blow the whistle whenever its business relationships or
customers act in breach of local laws and regulations or they do not adopt the required ethics required in
conducting banking activities. The process for whistle-blowing is well documented in a policy established
by the Bank and made available to all staff.
ANTI-MONEY LAUNDERING
The Bank also has an established anti-money laundering system in place in compliance with requirements of
Ghana’s Anti-Money Laundering Act, 2008 (Act 749) as amended by Anti-Money Laundering (Amendment)
Act, 2014 (Act 874).
These include due diligence for opening new accounts, customer identification, monitoring of high risk
accounts, record keeping and training and sensitization of staff on money laundering, which assist in
reducing regulatory and reputational risks to its business. Staff members receive training on anti-money
laundering policies and practices.

CORPORATE
social responsibility report
2017 EVENTS
INTRODUCTION
At Ecobank Ghana, Corporate Social responsibility is a fundamental obligation and we aim at conducting
business in a manner that creates value for our customers, shareholders and communities that we
serve in. The bank understands that the needs of shareholders are of primary importance. However, we
must balance this with doing business in a manner that is beneficial for our communities.
Through the various activities we undertook as highlighted below, we significantly impacted the lives of
our communities in the areas of maternal health, education, financial inclusion amongst others.

SOCIAL RESPONSIBILITY REPORT
The Ecobank Day Celebration.
As part of our annual Ecobank day activities, for 2017,

we focused on maternal health care and education in
Ghana. We committed an amount of GHS600,000 to
this cause and donated various medical equipment
to health facilities which play a key role in female
healthcare delivery. Some of the hospitals which
received donations included; Korle Bu Teaching
Hospital Maternity ward in Accra, Tema Polyclinic
in Tema, Maternal and Child Health Hospital, South
Hospital, Kwesimintsim Hospital in Takoradi, and
Savelugu Hospital etc. Our staff also visited mothers
in admission at the various hospitals and donated
items to them.
In the area of education, we donated Fifteen (15)

serviced computers for an ICT lab and career
development books to Three Town Secondary School in
Aflao. In addition, 25 brilliant underprivileged students
selected from various second cycle institutions across
the country were awarded scholarships.

Blood Donation
Exercise
Our annual blood donation exercise across our
key locations in in Accra, Tema, Kumasi, Takoradi
and Tamale, yielded over 500 pints of blood for
the National Blood Bank.

SOCIAL RESPONSIBILITY REPORT
CSR Day in Ecobank Ghana
Ecobank Ghana in May 2017 set a day aside to make various donations:
The National Diabetes Association:

Ecobank presented Over 600 Glucose test strips to the National Diabetes Association as part of support for free
health screening in commemoration of World Diabetes Day 2017. Staff of Ecobank Ghana also later in the year
joined the Association for a health walk to raise awareness on the prevalence of the disease to commemorate
World Diabetes Day.
The Children’s Heart Foundation:

Ecobank over the years has sponsored heart surgeries for 17 children through the Children’s Heart Foundation.
In 2017, the foundation received a donation for the full payment of surgery for 2 children with a “Hole in Heart”
condition, through the Children’s Heart Foundation.
Ghana Medical Students:

Ecobank supported 30 medical students by subsidizing the cost of their exchange programs to various countries
as part of their curriculum for completing training in medical school.
The National Malaria Control Program:

Ecobank also presented over 2000 treated mosquito nets to the National Malaria Control program, to support
them in the national fight against malaria. This was in commemoration of World Malaria Day.
Village of Hope Orphanage:

Ecobank also sponsored the school fees of 15 orphans at the Village of Hope orphanage.
Other Beneficiaries
FHI 360:
Ecobank Supported the FHI 360 project of constructing 100 reading kiosks, to encourage reading in rural areas.
The National Partnership for Children’s Trust (NPCT):

Ecobank supported 20 underprivileged university students through The NPCT in 2017.
School For the Deaf:

Ecobank supported the school for the deaf to commemorate their 50th anniversary celebration.
Safe Water Project:

Ecobank Supported the Safe Water Project to provide safe drinking water to rural areas.
Ecobank will continue in its commitment to support education, health, financial inclusion, underprivileged
individuals, groups and institutions, and the environment.. We are committed to the welfare of the communities
in which we operate and we will continue to find ways to impact society positively.

SUSTAINABILITY
report 2017
INTRODUCTION
Ecobank Ghana Limited (EGH) continues to pursue its sustainability path towards creating value and
meeting stakeholders’ expectations. Our efforts continue to focus on, driving economic transformation
by carrying out business and financing activities in a responsible manner, taking into account the social
and environmental impact of activities on the economy. This is in addition to augmenting our operations
by embracing local and international best practices.
In the area of environmental sustainability, the bank is advancing its commitment to paperless
operations and pursuing its digitization agenda in 2017 this led to a reduction in operational costs,
financial inclusion and greater efficiency.
PROMOTING GREEN INITIATIVES
Ecobank Ghana continues to show keen interest continues to lead in the search for viable Green
in supporting the promotion of green business Financing alternatives and is currently pursuing
initiatives. The bank in November 2017, accreditation to the Green Climate Fund (GCF).
participated in a Green Finance Conference Ecobank is well placed to on-lend or blend GCF
organized in conjunction with African Guarantee funds that will be accessed for project financing
Fund, International Trade Centre and Nordic to achieve the primary objective of climate
Development Fund at the Movenpick Ambassador change mitigation and adaptation priorities in
Hotel. Ghana. Invariably, the bank is playing a critical
role in shifting the development paradigm of
During a panel discussion, Mr. Daniel Sackey, the country along with national objectives and
the Managing Director of the bank, provided priorities in collaboration with the GCF and other
positive insights on Green Finance solutions for stakeholders.
Small and Medium Enterprises. Ecobank also

Group photograph of participants during the compliance training at Tarkwa – photo credit GIZ GmbH
*AfIn also supports companies adhering to national and international anti-corruption standards.
GLOBAL INITIATIVE AND PARTNERSHIPS
Ecobank Ghana limited continued its collaboration with the Alliance for integrity (AfIn*) by connecting
stakeholders, to build capacity and implement best practices on preventing and combating corruption. AfIn in
collaboration with Ecobank Ghana and other stakeholders promote integrity by ensuring that Small and Medium
Enterprises adopt appropriate compliance standards in the process of conducting their businesses.
As part of the programme, Ecobank Ghana Limited by relying on its world-class compliance systems has
volunteered to train and support Small and Medium-sized Enterprises (SMEs) to counter corruption and develop
skills in Compliance. These SMEs gain practical tools to solve problems related to corruption and thereby increase
their competitiveness. In 2017 Ecobank trainers teamed up with the AfIn to conduct two training programmes
in Accra and Tarkwa. Participants for the Tarkwa training came from 17 companies spread across Tarkwa,
Takoradi and Mankessim. Participants were taken through topics covering the basics of corruption, as well as
internal and external measures to counter corruption.

ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT (ESRM)
Financial solutions that were offered by the bank to its customers include providing solutions on managing
Environmental and Social (E&S) risks associated with our client’s business operations. We do this by integrating
E&S Due Diligence, Assessment and Action Plan Formulation into our credit appraisal processes. The Policy
categorizes E & S risks into High, Medium A, Medium B and Low.
The 2017 summary of the management of the credit portfolio for environmental and social risks is summarized
in the chart below:
E & S TRANSACTIONS 2017
Volume in Number of
USD TRANSACTIONS
LOW MEDIUM B MEDIUM A HIGH
SUSTAINABILITY AND BUSINESS GROWTH
Ecobank Sustainability strategy includes embarking on environmentally responsible operations and particularly
embracing efficiency as a way of enhancing the environmental footprints in our operations. Subsequently the
new Head Office Building for Ecobank Ghana, is defined by cutting edge green principles creating an energy
efficient building.
The design embraces sustainable and economical building solutions with an optimized response to solar
orientation, balanced with an inside- out approach. In addition the building optimises heat gains and resultant
energy demand. The consideration of initial capital outlay and gains in the life cycle of the building have been
carefully considered. This has been achieved through adopting innovative solutions through careful selection of

SUSTAINABILITY REPORT
SUSTAINABILITY AND BUSINESS GROWTH (CONT’D)
glazing, and shading devices. Thermal comfort in the the Tbill4 All, a product that offers the unbanked and
building has been considered providing a building underbanked members of society with a secured
envelope and mechanical systems that are closely means of investment.
interrelated; this is a crucial step towards achieving
Heat Ventilation & Air Conditioning (HVAC ) load By the end of year 2017, Ecobank Ghana Limited
reduction. In addition a double glazed durable high switched from semi-manual credit processing to
performance glass product ideal for the tropical an automated workflow on an electronic platform
climate conditions has been used for the building which not only facilitates speedy credit decisions but
casing. ensures that filing and archiving of important credit
files and documents are stored electronically in an
Exterior shading devise such as vertical fins environmentally friendly and sustainable manner.
complimented by a perforated double skin on
western exposed facades and horizontal louvers/ Banking operations naturally, continues to rely on
light shelves to the southern and northern exposed paper as a natural resource most-utilized in our
facades. These elements are strategically integrated offices and branches, including operations, contracts
into the envelope as energy efficiency measures to and correspondence, services offered to clients and
mitigate solar heat gains. promotional materials. However we have made
In terms of Green Principles as they relate to the conscious efforts to reduce the use of paper through
overall architectural design consideration has been well considered measures mentioned above. In
given to; daylight, external views, internal noise levels addition the use of EGH’s Document Management
and volatile organic compounds. These are to ensure System for the digitization of teller transaction
indoor environmental quality. Energy is conserved records has saved the bank an estimated 2.3 million
through roof insulation, as well as insulation of sheets of paper in the year 2017.
all ‘open sky’ floors in accordance with HVAC and
acoustic requirements.
DIGITALIZATION, CREDIT AUTOMATION

AND SYSTEMS OPTIMIZATION
In line with the banks’ continuous commitment to

adopt best international practice and optimise the
use of resources, Ecobank continues to focus on
transforming its management operating system
across the business with sustainability considerations.
Ecobank Ghana Limited continues to deepen its
market through the digital agenda by launching a
number of e-products, primarily the Ecobank Mobile
App, a simple and convenient way of banking via the
mobile phone that provides customers with reduced
transaction costs and allows them to make instant
payments within and across affiliates. The App also
enables consumers to open a new Ecobank digital
account, the Xpress account, in a matter of minutes.
These are but a few of the services offered through
our Mobile App. In addition the bank also introduced
1 North-West elevation of the head office building

INDEPENDENT
auditor’s report
REPORT ON THE AUDIT OF THE CONSOLIDATED AND

SEPARATE FINANCIAL STATEMENTS
Opinion manner required by the Companies Act, 1963
(Act 179), and the Banks and Specialised Deposit-
We have audited the consolidated (“the Group”) Taking Institution Act, 2016 (Act 930).
and separate (“the Bank”) financial statements
of Ecobank Ghana Limited, which comprise Basis for Opinion
the consolidated and separate statements of
financial position at 31 December 2017 and We conducted our audit in accordance with
the consolidated and separate statements of International Standards on Auditing (ISAs).
comprehensive income, changes in equity and Our responsibilities under those standards are
cash flows for the year then ended, and the further described in the Auditor’s Responsibilities
notes to the financial statements which include for the Audit of the Consolidated and Separate
a summary of significant accounting policies and Financial Statements section of our report. We
other explanatory notes, as set out on pages 85 are independent of the Group in accordance
to 168. with the International Ethics Standards Board
for Accountants’ Code of Ethics for Professional
In our opinion, these financial statements Accountants (IESBA Code) together with the
give a true and fair view of the consolidated ethical requirements that are relevant to our
and separate financial position of Ecobank audit of the financial statements in Ghana, and
Ghana Limited at 31 December 2017, and of its we have fulfilled our other ethical responsibilities
consolidated and separate financial performance in accordance with these requirements and the
and consolidated and separate cash flows for the IESBA Code. We believe that the audit evidence
year then ended in accordance with International we have obtained is sufficient and appropriate to
Financial Reporting Standards (IFRSs) and in the provide a basis for our opinion.

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated and separate financial statements of the current period. These matters
were addressed in the context of our audit of the consolidated and separate financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The key audit matter How the matter was addressed

in our audit
Impairment of loans and advances to customers (GH¢215.8 million).

Refer to Note 24 of the consolidated and separate financial statements.
Impairment Allowance on loans and advances Our procedures included:
The estimation of impairment allowance for loans and • Testing the design, implementation and operating
advances to customers involves complexity and subjectivity effectiveness of key controls over capturing,
in estimating the timing and amount of cash flows used monitoring and reporting of loans and advances to
in the computation. Loans for which there is objective customers;
evidence that an impairment event has occurred are
assessed individually for impairment. If there is no evidence • Evaluating the year end impairment models for
that an impairment exists on an individual basis, loans are collective and individual impairment by re-performing
assessed collectively for impairment. calculations and agreeing a sample of data inputs to
source documentation;
Assessing impairment allowances on loans and advances
to customers requires management to make assumptions • For individually significant impaired loans, we
about financial conditions and the timing of expected future assessed the appropriateness of estimated cashflows,
cash flows. Cash flows are determined from collateral values including reasonableness of collateral value used, the
and/or contractual arrangements which are supported with appropriateness of effective interest rate and the
appropriate documents. Management assumes that the reasonableness of recoverability of collateral in the
value of collaterals will be fully realised through sale in the light of our industry knowledge and guidelines issued
event of default on loans and advances. by Bank of Ghana.
The collective impairment loss allowance relates to losses • For collective impairment, we assessed the
incurred but not yet identified (IBNR loss allowances) on appropriateness and consistencies of the model
other loans and advances. The two key judgments in the used.
collective provisioning assessment are the likelihood
of default and the emergence period. The impairment • Evaluating the adequacy of the Group’s disclosures in
assessment requires the application of significant relation to impairment about the changes in estimate
judgement by management including the application occurring during the period and the sensitivity to the
of industry knowledge, prevailing economic conditions key assumptions.
and historical data to determine the level of impairment
allowance required.
Interest Income (GH¢904.5 million)

Refer to Note 6 of the consolidated and separate financial statements
Revenue Recognition Our procedures included:
Interest income is recognised using the effective interest • Testing the design, implementation and operating
rates as opposed to the nominal rate. Determining the effectiveness of key controls over the existence and
effective interest rate involves some level of complexity accuracy of reported revenues.
which could lead to inaccurate interest recognition. In • Using computer assisted audit techniques to perform
addition, there is a presumed risk that revenue may not be substantive testing to confirm completeness and
appropriately recognised. accuracy of revenue reported.
• Agreeing underlying data on loans and advances to
details of loans and advances in the Bank’s general
ledger and banking application.
• Assessing the adequacy of the Bank’s disclosures
of its revenue recognition policy and other related
disclosures.

INDEPENDENT AUDITOR’S REPORT
Other Information as the Directors determine is necessary to enable

the preparation of financial statements that are
The Directors are responsible for the other free from material misstatement, whether due
information. The other information comprises to fraud or error.
the Report of the Directors as required by the
Companies Act, 1963 (Act 179) and the Banks In preparing the consolidated and separate
and specialised Deposit- Taking Institution Act, financial statements, the Directors are
2016 (Act 930), which we obtained prior to the responsible for assessing the Group’s ability
date of this auditor’s report, and the Chairman’s to continue as a going concern, disclosing, as
statement and the Managing Director’s Review, applicable, matters related to going concern
which is expected to be made available to us and using the going concern basis of accounting
after that date. Other information does not unless the Directors either intend to liquidate
include the consolidated and separate financial the Group or to cease operations, or have no
statements and our auditor’s report thereon. realistic alternative but to do so.
Our opinion on the consolidated and separate The Directors are responsible for overseeing the
financial statements does not cover the other Group’s financial reporting process.
information and we do not express any form of
assurance conclusion thereon. Auditor’s Responsibilities for the Audit of
the Consolidated and Separate Financial
In connection with our audit of the consolidated Statements
and separate financial statements, our
responsibility is to read the other information Our objectives are to obtain reasonable
and, in doing so, consider whether the other assurance about whether the consolidated and
information is materially inconsistent with the separate financial statements as a whole are
consolidated and separate financial statements free from material misstatement, whether due
or our knowledge obtained in the audit, or to fraud or error and to issue an auditor’s report
otherwise appears to be materially misstated. that includes our opinion. Reasonable assurance
If, based on the work we have performed, we is a high level of assurance, but is not a guarantee
conclude that there is a material misstatement that an audit conducted in accordance with ISAs
of this other information, we are required to will always detect a material misstatement when
report that fact. We have nothing to report in it exists. Misstatements can arise from fraud or
this regard. error and are considered material if, individually
or in the aggregate, they could reasonably be
Responsibilities of the Directors for the expected to influence the economic decisions of
Consolidated and Separate Financial users taken on the basis of these consolidated
Statements financial statements.
The Directors are responsible for the

preparation of consolidated and separate
financial statements that give a true and fair
view in accordance with International Financial
Reporting Standards and in the manner required
by the Companies Act, 1963 (Act 179) and the
Banks and Specialised Deposit-Taking Institution
Act, 2016 (Act 930) and for such internal control

Auditor’s Responsibilities for the Audit of the Consolidated
and Separate Financial Statements (CONT’D)
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated and separate financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the consolidated and separate financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial
statements, including the disclosures, and whether the consolidated and separate financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated and separate
financial statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion
We communicate with the Directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.

INDEPENDENT AUDITOR’S REPORT
Report on Other Legal and Regulatory Requirements
Compliance with the requirements of Section 133 of the Companies Act, 1963 (Act 179) and Section 85 of the
Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
We have obtained all the information and explanations which, to the best of our knowledge and belief
were necessary for the purpose of our audit.
In our opinion, proper books of account have been kept, and the consolidated and separate statements
of financial position and profit or loss and other comprehensive income are in agreement with the
books of account.
The Bank’s transactions were within its powers and except as indicated in Note 48, the Bank generally
complied with the relevant provisions of the Banks and Specialised Deposit-Taking Institutions Act,
2016 (Act 930).
The Bank has generally complied with the provisions of the Anti-Money Laundering Act, 2008 (Act 749),
as amended by Anti-Money Laundering Amendments Act, 2014 (Act 874), the Anti-Terrorism Act, 2008
(Act 762) and the Regulations governing the Acts.
The engagement partner on the audit resulting in this independent auditor’s report is Anthony Kwasi
Sarpong (ICAG/P/1369).
FOR AND ON BEHALF OF:

KPMG: (ICAG/F/2018/038)
CHARTERED ACCOUNTANTS
13 YIYIWA DRIVE, ABELENKPE
P O BOX GP 242
ACCRA
26th February, 2018

FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR

ENDED 31 DECEMBER 2017
The Group The Bank
2017 2016 2017 2016
Note GH¢’000 GH¢’000 GH¢’000 GH¢’000
Interest income 6 904,577 905,304 885,483 878,914
Interest expense 7 (160,308) (186,199) (157,451) (177,437)
Net interest income 744,269 719,105 728,032 701,477
Fees and commission income 8 202,276 160,489 202,070 160,503
Fees and commission expense 9 (3,521) (3,267) (3,471) (3,233)
Net fees and commission income 198,755 157,222 198,599 157,270
Net trading income 10 144,006 130,274 143,689 129,934
Other operating income 11 25,895 18,062 25,580 17,691
Other revenue 12 3,921 4,140 19,931 16,942
Gains from derecognition of financial

assets measured at amortized cost 13 - 177,854 - 177,854
173,822 330,330 189,200 342,421
Revenue 1,116,846 1,206,657 1,115,831 1,201,168
Other income 14 267 291 267 291
Net Impairment loss on financial assets 15 (173,940) (178,597) (173,939) (178,570)
Personnel expenses 16 (343,672) (316,359) (343,108) (315,993)
Depreciation and amortisation 17 (26,296) (21,534) (26,296) (21,533)
Other expenses 18 (215,296) (228,468) (214,995) (228,177)
Operating profit 357,909 461,990 357,760 457,186
Share of profit of associates (net of tax) 42 474 686 - -
Profit before income tax 358,383 462,676 357,760 457,186
Income tax expense 19 (104,738) (134,780) (102,376) (131,592)
Profit after tax for the year 253,645 327,896 255,384 325,594
The notes on pages 85 to 168 form an integral part of these financial statements.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
31 DECEMBER 2017
The Group The Bank
2017 2016 2017 2016
Note GH¢’000 GH¢’000 GH¢’000 GH¢’000
Profit for the year 253,645 327,896 255,384 325,594
Other comprehensive income

Items that may be reclassified
Subsequently to profit or loss
Reclassified fair value gains

or losses to profit or loss 38 - 2,221 - 1,100
Related tax - (555) - (275)
Items that will never be reclassified

Subsequently to profit or loss
Gains on revaluation of property 37 79,537 - 79,537 -

Related tax 20 (19,884) (8,927) (19,884) (8,927)
Other comprehensive income for the year, net of tax 59,653 (7,261) 59,653 (8,102)
Total comprehensive income for the year 313,298 320,635 315,037 317,492
Profit for the year attributable to:

Equity holders of the Bank 253,645 327,896 255,384 325,594
Comprehensive income for the year attributable to:

Equity holders of the Bank 313,298 320,635 315,037 317,492
Earnings per share

Basic and diluted (in Ghana pesewas) 22 87 112 87 112
The notes on page 85 to 168 form an integral part of these financial statements.

STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2017
The Group The Bank

2017 2016 2017 2016
Note GH¢’000 GH¢’000 GH¢’000 GH¢’000
Assets
Cash and Bank Balances 23 2,952,753 3,193,202 2,969,557 3,191,866
Loans and advances to customers 24 2,685,468 3,480,544 2,685,759 3,480,471
Investment securities 25 2,518,542 641,010 2,462,208 578,985
Investment in subsidiaries 26 - - 28,771 22,778
Investment in associates 42 8,547 8,073 4,841 4,841
Current tax asset 19 28,692 6,003 27,293 5,593
Other assets 27 409,463 342,262 425,591 355,200
Intangible assets 28 4,182 5,389 4,182 5,389
Non-current asset held for sale 29 34,487 63,726 34,487 63,726
Property and equipment 30 456,006 316,661 456,003 316,661
Total assets 9,098,140 8,056,870 9,098,692 8,025,510
Liabilities
Deposits from Banks 31 606,452 542,856 714,888 630,288
Deposit from customers 32 6,541,648 5,416,916 6,447,818 5,316,625
Deferred tax liabilities 20 30,160 6,801 30,167 6,810
Borrowings 33 203,200 232,744 203,200 232,744
Other liabilities 34 679,753 893,477 675,821 886,835
Total liabilities 8,061,213 7,092,794 8,071,894 7,073,302
Equity and reserves

Stated capital 35 226,641 226,641 226,641 226,641
Income surplus 36 208,393 271,445 198,782 260,078
Revaluation reserve 37 109,782 50,129 109,782 50,129
Statutory reserve 40 355,064 323,124 354,546 322,623
Credit risk reserve 41 137,047 92,737 137,047 92,737
Total equity attributable to equity holders of the Bank 1,036,927 964,076 1,026,798 952,208
Total liabilities and equity 9,098,140 8,056,870 9,098,692 8,025,510
These financial statements were approved by the Board of Directors on 26 February 2018 and signed on its behalf by:
CHAIRMAN MANAGING DIRECTOR

STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2017
Stated Income Revaluation Other Statutory Credit risk

The Group capital surplus reserve reserves reserve reserve Total
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Balance at 1 January 2016 226,641 272,852 59,056 (1,666) 282,412 50,458 889,753
Total comprehensive income

Profit for the year - 327,896 - - - - 327,896
Other comprehensive income,
net of tax - - (8,927) 1,666 - - (7,261)

for the year - 327,896 (8,927) 1,666 - - 320,635
Transactions with equity holders

Dividends paid - (246,312) - - - - (246,312)
Total contribution by and

distribution to equity holders - (246,312) - - - - (246,312)
Regulatory transfers
Statutory reserve - (40,712) - - 40,712 - -
Credit risk reserve - (42,279) - - - 42,279 -
- (82,991) - - 40,712 42,279 -
Balance at 31 December 2016 226,641 271,445 50,129 - 323,124 92,737 964,076


FOR THE YEAR ENDED 31 DECEMBER 2017 (CONT’D)

The Group capital surplus reserve reserves reserve reserve Total
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Balance at 1 January 2017 226,641 271,445 50,129 - 323,124 92,737 964,076

Revaluation gains net of tax - - 59,653 - - - 59,653

for the year - 253,645 59,653 - - - 313,298
Transactions with
equity holders
Dividends paid - (240,447) - - - - (240,447)

- (76,250) - - 31,940 44,310 -
Balance at 31 December 2017 226,641 208,393 109,782 - 355,064 137,047 1,036,927


The Bank capital surplus reserve reserves reserve reserve Total
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Balance at 1 January 2016 226,641 263,775 59,056 (825) 281,923 50,458 881,028

Other comprehensive income,
net of tax - - (8,927) 825 - - (8,102)

for the year - 325,594 (8,927) 825 - - 317,492
Transactions with
equity holders
Dividends paid - (246,312) - - - - (246,312)

- (82,979) - - 40,700 42,279 -
Balance at 31 December 2016 226,641 260,078 50,129 - 322,623 92,737 952,208


FOR THE YEAR ENDED 31 DECEMBER 2017 (CONT’D)

The Bank capital surplus reserve reserves reserve reserve Total
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Balance at 1 January 2017 226,641 260,078 50,129 - 322,623 92,737 952,208

Revaluation gains net of tax - - 59,653 - - - 59,653

for the year - 255,384 59,653 - - - 315,037
Transactions with
equity holders
Dividends paid - (240,447) - - - - (240,447)
Revaluation - - - - - - -

- (76,233) - - 31,923 44,310 -
Balance at 31 December 2017 226,641 198,782 109,782 - 354,546 137,047 1,026,798

STATEMENTS OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2017
The Group The Bank

2017 2016 2017 2016
Note GH¢’000 GH¢’000 GH¢’000 GH¢’000
Cash flows from operating activities

Interest paid (150,778) (206,986) (149,521) (184,667)
Interest received 864,810 927,253 848,008 894,554
Net fees and commissions 212,304 157,222 212,148 157,270
Other income received 31,387 22,202 47,082 34,633
Net trading income 178,311 194,123 177,994 193,783
Gains from derecognition of financial assets
At amortised cost - 177,854 - 177,854
Payments to employees and suppliers (664,522) (498,419) (663,637) (497,428)
Tax paid (123,952) (125,669) (120,603) (122,352)
Cash flows from operating activities before

changes in operating assets and liabilities 347,560 647,580 351,471 653,647
Changes in operating assets and liabilities

Loans and advances (17,666) (493,709) (20,321) (488,424)
Other assets (65,282) (4,907) (68,472) (5,009)
Customer deposits 1,066,817 349,372 1,073,278 422,518
Other liabilities (170,910) 389,953 (166,620) 373,392
Mandatory reserves (368,645) (156,092) (368,645) (156,092)
Net cash generated from operating activities 791,874 732,197 800,691 800,032
Cash flow from investing activities

Purchase of property and equipment 30 (82,857) (83,094) (82,854) (83,094)
Purchase of software 28 (2,449) (956) (2,449) (956)
Proceeds from sale of equipment 30 676 2,442 676 2,442
Proceeds from the sale of non-current
Assets held for sale 16,418 - 16,418 -
Government securities purchased (1,668,168) (3,750,837) (1,456,854) (3,515,475)
Proceeds from sale of Government securities 256,510 3,534,928 45,954 3,279,529
Investment in subsidiaries - - (5,993) -
Net cash used in investing activities (1,479,870) (297,517) (1,485,102) (317,554)

STATEMENTS OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2017
The Group The Bank

2017 2016 2017 2016
Note GH¢’000 GH¢’000 GH¢’000 GH¢’000
Cash flows from operating activities

Dividend paid (240,447) (246,312) (240,447) (246,312)
Repayment of borrowed funds 33 (42,691) (180,646) (42,691) (180,646)
Proceeds from borrowed funds 33 43,796 - 43,796
Net cash used in financing activities (283,138) (383,162) (283,138) (383,162)
Net increase in cash and cash equivalents (971,134) 51,518 (967,549) 99,316
Cash and cash equivalents at beginning of year 2,248,528 2,078,094 2,104,237 1,886,005
Effect of exchange rate fluctuations on cash and

cash equivalents 39,611 118,916 39,611 118,916
Cash and cash equivalents at end of year 39 1,317,005 2,248,528 1,176,299 2,104,237

COMMISSIONING
OF THE
ECOBANK GHANA HEAD OFFICE

TO THE FINANCIAL STATEMENTS
NOTES
1. GENERAL INFORMATION
Ecobank Ghana Limited is a limited liability company, incorporated and domiciled in Ghana. These
financial statements comprise the consolidated financial statements of the Bank and its subsidiaries
(together the Group) and its interest in associates as well as the separate financial statements of the
Bank. The Group provides retail, corporate and investment banking and other financial services in
Ghana.
The Bank is listed on the Ghana Stock Exchange.
The consolidated and separate financial statements were authorized for issue by the Board of Directors
on 26th February 2018.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all the periods presented in these
financial statements and have been applied consistently by Group entities.
2.1 Basis of Presentation
The Group’s financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board. Additional information required by
the Companies Act, 1963 (Act 179) and the Banks and Specialised Deposit- Taking Institution Act, 2016 (Act 930)
have been included, where appropriate. The financial statements have been prepared under the historical cost
convention, except for buildings which are carried at revalued amounts.
The financial statements are presented in Ghana cedis, which is the Bank’s functional currency. Except otherwise
indicated, financial information presented in Ghana cedis has been rounded to the nearest thousand.
Information on risks from financial instruments and financial risk management policies are disclosed in Note 3.
2.2 Use of Judgment and Estimates
The preparation of financial statements in conformity with IFRS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period
in which the estimate is revised, if the revision affects only that period or in the period of revision and future
periods, if the revision affects both current and future periods.
Areas involving a higher degree of judgement or complexity, or where assumptions and estimates are considered
significant to the financial statements, are disclosed in Note 5.

2.3 New Standards and Interpretations issued but not yet effective
A number of new standards and amendments to standards are effective for annual periods beginning after 1
January 2017, however, the Group has not applied these new or amended standards in preparing these financial
statements. Those which may be relevant to the Group are set out below. The Group does not plan to early
adopt these standards.
Standard / Interpretation Effective Date

IFRS 9 Financial instruments 1 January 2018
IFRS 15 Revenue from contract with customers 1 January 2018
IFRS 16 Leases 1 January 2019

NOTES TO THE FINANCIAL STATEMENTS
IFRS 9 Financial Instruments
IFRS 9 Financial Instruments

In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 Financial
Instruments: Recognition and Measurement and all previous versions of IFRS 9. IFRS 9 is effective for annual
periods beginning on or after 1 January 2018, with early application permitted.
In October 2017, the IASB issued Prepayment Features with Negative Compensation (Amendments to IFRS 9).
The amendments are effective for annual periods beginning on or after 1 January 2019 with early adoption
permitted. The group and company have begun assessing the potential impact on the financial statements
resulting from the application of the amendments to IFRS 9 as issued in October 2017.
Classification and measurement

IFRS 9 will have a significant impact on the Bank, which will include changes in the measurement bases of the
Bank’s financial assets to amortised cost, fair value through other comprehensive income or fair value through
profit or loss. Even though these measurement categories are similar to IAS 39, the criteria for classification into
these categories are significantly different.
The new classification reflects the business model in which assets are managed and their cash flow characteristics.
IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, fair
value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). The standard
eliminates the existing IAS 39 categories of held to maturity, loans and receivables and available for sale.
A financial asset is measured at amortised cost if it meets both the following conditions and is not designated
as at FVTPL:
• It is held within a business model whose objective is to hold assets to collect contractual cash flows; and
• Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.
A financial asset is measured at FVOCI only if it meets both of the following conditions and is not designated as
at FVTPL:
• It is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets; and
• Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Financial assets not classified as measured at amortised cost or FVOCI as described above are measured at
FVTPL. In addition, on initial recognition the Bank may irrevocably designate a financial asset that otherwise
meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.

A financial asset is classified into will consider the contractual terms which may include reasonable
one of these categories on initial of the instrument. This will include compensation for early
recognition. assessing whether the financial termination of the contract.
asset contains a contractual term
Business Model assessment that could change the timing or Impact assessment
amounts of contractual cash flows
The Bank will make an assessment such that it would not meet this The standard will affect
of the objective of the business condition. classification and measurement of
model in which a financial asset is financial assets held at 1 January
held at a portfolio level because this The Bank has the ability to change 2018 as follows:
best reflects the way the business the interest rates on variable
is managed and information is rate loans at its discretion. The • Loans and advances to
provided to management. discretionary rate compensates Banks and to customers that
for basic lending costs and allows are classified as loans and
Financial assets that are held the Bank to remain competitive in receivables and measured at
for trading and those that are the industry. In this case the Bank amortised cost under IAS 39
managed and whose performance will assess whether discretionary will in general be measured at
is evaluated on a fair value basis feature is consistent with the SPPI amortised cost under IFRS 9;
will be measured at FVTPL because criterion by considering a number
they are neither held to collect of factors, including: • Debt investment securities
contractual cash flows nor held that are classified as available-
both to collect contractual cash • The borrowers’ ability to repay for-sale under IAS 39 may,
flows and to sell financial assets. the loans without significant under IFRS 9, be measured at
penalties; amortised cost, FVOCI or FVTPL,
Assessment of whether depending on the particular
contractual cash flows are • Market conditions ensures that circumstances; and
solely payments of principal interest rates are consistent
and interest between banks; and • Held-to-maturity securities
(Government of Ghana bills)
For the purpose of this assessment, • Any regulatory or customer measured at amortised cost
“principal” is defined as the fair protection framework is in place under IAS 39 will in general be
value of the financial asset on that requires Banks to treat measured at amortised cost
initial recognition. ‘Interest’ is customers fairly. under IFRS 9.
defined as consideration for the
time value of money, for the credit Some of the Bank’s loans contain • Equity securities classified as
risk associated with the principal prepayment features. The available-for-sale under IAS 39
amount outstanding during a borrower has the ability to early would generally be measured at
particular period of time and for prepay (without paying any fees). FVOCI under IFRS 9.
other basic lending risks and cost
(eg liquidity risk and administrative A prepayment feature is consistent
costs), as well as a profit margin. with the SPPI criterion if the
prepayment amount substantially
In assessing whether contractual represents unpaid amounts of
cash flows are solely payments of principal and interest on the
principal and interest, the Bank principal amount outstanding,

Impairment – Financial amount recognised will be gross carrying amount and

assets, loan commitments 12-month ECLs: the present value of estimated
and financial guarantee future cash flows;
contracts • Debt investment securities that
are determined to have low • U
ndrawn loan commitments: the
IFRS 9 replaces the ‘incurred credit risk at the reporting date; present value of the difference
loss’ model in IAS 39 with a and between the contractual cash
forward looking ‘expected credit • Other financial instruments flows that are due to the Group
loss’ model. This will require for which credit risk has not if the commitment is drawn
considerable judgement over how increased significantly since down and the cash flows that
changes in economic factors affect initial recognition. the Group expects to receive;
ECLs, which will be determined on and
a probability-weighted basis. The impairment requirements of
IFRS 9 are complex and require • Financial guarantee contracts:
The new impairment model management judgements, the expected payments to
applies to the following financial estimates and assumptions, reimburse the holder less any
instruments that are not measured particularly in the following areas: amounts that the Group expects
at FVTPL: to recover.
• Assessing whether the credit
• Financial assets that are debt risk of an instrument has Financial assets that are credit-
instruments; and increased significantly since impaired are defined by IFRS 9 in a
• L
oan commitments and financial initial recognition; and similar way to financial assets that
guarantee contracts issued. • Incorporating forward- are impaired under IAS 39.
looking information into the
No impairment loss will be measurement of ECLs.
recognised on equity investments.
Measurement of ECL
IFRS 9 requires a loss allowance to
be recognised at an amount equal ECLs are a probability-weighted
to either 12-month ECLs or lifetime estimate of credit losses and will
ECLs. Lifetime ECLs are the ECLs be measured as follows:
that result from all possible default
events over the expected life of • Financial assets that are not
a financial instrument, whereas credit-impaired at the reporting
12-month ECLs are the portion date: the present value of all cash
of ECLs that result from default shortfalls (i.e. the difference
events that are possible within between the cash flows due to
the 12 months after the reporting the entity in accordance with the
date. contract and the cash flows that
the Group expects to receive);
The Bank will recognise loss
allowance at an amount equal • Financial assets that are credit-
to lifetime ECLs, except in the impaired at the reporting date:
following cases, for which the the difference between the

Definition of default
Under IFRS 9, the Group will consider a financial asset to be in default when:
• The borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to
actions such as realising security (if any is held); or
• The borrower is past due more than 90 days on any material credit obligation to the Group. Overdrafts are
considered as being past due once the customer has breached as advised limit or been advised of a limit
smaller than the current amount outstanding.
In assessing whether a borrower is in default, the Group will consider indicators that are:
• Qualitative – e.g. breaches of covenant;

• Quantitative – e.g. overdue status and non-payment on another obligation of the same issuer to the Group;
and
• Based on data developed internally and obtained from external sources.
Inputs into the assessment of whether a financial instrument is in default and their significance may vary over
time to reflect changes in circumstances.
Significant increase in credit risk
Under IFRS 9, when determining whether the risk of default on a financial instrument has increased significantly
since initial recognition, the Group will consider reasonable and supportable information that is relevant and
available without undue cost or effort, including both quantitative and qualitative information and analysis, based
on the Group’s historical experience and expert credit assessment and including forward-looking information.
The Group is currently formulating its detailed methodologies for assessing increases in credit risk under IFRS 9.
The Group expects that identifying whether a significant increase in credit risk has occurred for an exposure will
entail comparing:
• The remaining lifetime probability of default (PD) at the reporting date; with
• The remaining lifetime PD for this point in time that was estimated at the time of initial recognition of the
exposure.
The criteria for determining whether credit risk has increased significantly vary by portfolio and will include
quantitative changes in PDs and qualitative factors, including a backstop based on delinquency. The Group
is yet to develop quantitative modelling for determining whether credit risk has increased significantly using
credit risk grades. As a backstop, as required by IFRS 9, the Group will presumptively consider that a significant
increase in credit risk occurs no later than when an asset is more than 30 days past due. The Group expects to
determine days past due by counting the number of days since the earliest elapsed due date in respect of which
full payment has not been received.

Inputs into measurement of ECL
The key inputs into the measurement of ECL are likely to be the term structures of the following variables:
• Probability of default (PD);

• Loss given default (LGD);
• Exposure at default (EAD).
In general, the Group expects to derive these parameters from internally developed statistical models and other
historical data. They will be adjusted to reflect forward-looking information as described below.
PD estimates are estimates at a certain date, which the Group expects to calculate based on internal experience.
Transition matrix was developed for corporate and retail portfolios based on delinquency information. If an
exposure migrates between delinquency classes, then this well lead to a change in the estimate of the associated
PD. Under IFRS 9, the Group will incorporate forward-looking information into both its assessment of whether
the credit risk of an instrument has increased significantly since its initial recognition and its measurement.
This process would involve developing two or more additional economic scenarios and considering the relative
probabilities of each outcome. External information may include economic data and forecasts published by
governmental bodies and monetary authorities in the countries where the Group operates and selected private-
sector and academics forecasters. The Group is in the process of identifying and documenting key drivers of
credit risk and credit losses for each portfolio of financial instruments and, using an analysis of historical data,
estimating relationships between macro-economic variables and credit risk and credit losses.
LGD is the magnitude of the likely loss if there is a default. The Group plans to estimate LGD parameters based
on the history of recovery rates of claims against defaulted counterparties. It expects the LGD models to consider
the structure, collateral, seniority of the claim, counterparty industry and recovery costs of any collateral that is
integral to the financial asset.
EAD represents the expected exposure in the event of a default. The Group expects to derive the EAD from the
current exposure to the counterparty and potential changes to the current amount under the contract including
amortisation. The EAD of a financial asset will be the gross carrying amount at default. For lending commitments
and financial guarantees, the EAD will consider the amount drawn, as well as potential future amounts that
may be drawn or repaid under the contract, which will be estimated based on historical observations. For some
financial assets, the Group expects to determine EAD by modelling the range of possible exposure outcomes at
various points in time.

Impact Assessment
The Group will apply IFRS 9 as initially issued in July 2014 on 1 January 2018. Based on the assessments
undertaken to date, the total estimated Expected Credit Loss (ECL) on the financial assets of the Group as at
31 December 2017 would have been in the range of GH¢263,000,000 and GH¢321,035,000. Total estimated
adjustment (before tax) on the adoption of IFRS 9 on the opening balance of the Bank’s equity at 1 January
2018 will be approximately within the range of an increase of GH¢47,165,000 to GH¢ 105,200,000. From the
assessment, IFRS 9 impairment could be lower than the regulatory provisions. The Bank has estimated that on
adoption of IFRS 9, the impact on credit risk reserve will be an additional movement from credit risk reserve to
retained earnings.
The above assessment is preliminary because not all transition work has been finalised. The actual impact of
adopting IFRS 9 on 1 January 2018 may change because:
• IFRS 9 will require the Group to revise its accounting processes and internal controls and these changes are
not yet complete.
• Although parallel runs were carried out in the last quarter of 2017, the new system has not been operational
for a more extended period.
• The Group is refining and finalising its models for ECL calculation.
• The new accounting policies, assumptions, judgements and estimation techniques are subject to change
until the Group finalises its first financial statements that include the date of initial application.
Disclosure
IFRS 9 will require extensive new disclosures, in particular about credit risk and ECLs.
Impact on Capital planning

The Group’s lead Regulator (Bank of Ghana) is currently consulting on possible transition provisions relating to
the implementation of IFRS 9 under which some of the capital impact of IFRS 9 would be phased over two years.
The Bank of Ghana (“BoG”) has provided tentative guidelines on regulatory treatment of accounting provisions
on capital. BoG recommended that Banks should compare CET1 capital based on the opening statement of
financial position using ECL accounting with CET1 capital based on the closing statement of financial position
(ie the day prior to the opening day) under the existing incurred loss accounting approach. Where this shows a
reduction in CET1 capital due to an increase in provisions, net of tax effect, the decline in CET1 capital would be
spread for regulatory purposes over two years.
Transition
Changes in accounting policies resulting from the adoption of IFRS 9 will generally be applied retrospectively,
except as described below:
• The Group plans to take advantage of the exemption allowing it not to restate comparative information for
prior periods with respect to classification and measurement (including impairment) changes. Differences
in the carrying amounts of financial assets and financial liabilities resulting from the adoption of IFRS 9 will
generally be recognised in retained earnings and reserves as at 1 January 2018.

IFRS 15 Revenue from Contracts with Customers
IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is
recognised. It replaces existing revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction
Contracts and IFRIC 13 Customer Loyalty Programmes.
The standard contains a single model that applies to contracts with customers and two approaches to recognising
revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions
to determine whether, how much and when revenue is recognised
IFRS 15 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption
permitted.
The adoption of IFRS 15 is considered to have an impact on the Group’s fees and commission income. The
Group earns fees and commission income (other than fees included in the calculation of the effective interest
rates) on the provision of services. The Group is yet to perform a detailed impact assessment of IFRS 15 on its
fees and commission income, therefore the impact of IFRS 15 is currently unknown.
IFRS 16 Leases
IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-
use (ROU) asset representing its right to use the underlying asset and a lease liability representing its obligation
to make lease payments. There are optional exemptions for short-term leases and leases of low-value items.
Lessor accounting remains similar to the current standard – i.e. lessors continue to classify leases as finance or
operating leases.
IFRS 16 replaces existing leases guidance, including IAS 17 Leases, IFRIC 4 Determining whether an Arrangement
contains a Lease, SIC-15 Operating Leases – Incentives and SIC-27 Evaluating the Substance of Transactions
Involving the Legal Form of a Lease.
The standard is effective for annual periods beginning on or after 1 January 2019. Early adoption is permitted for
entities that apply IFRS 15 at or before the date of initial application of IFRS 16.
The Group is yet to start an initial assessment of the potential impact on its consolidated and separate financial
statements.

Transition
The Group currently plans to apply IFRS 16 initially on 1 January 2019.
As a lessee, the Group can either apply the standard using a:
• Retrospective approach - the standard is applied retrospectively to each prior reporting period presented
applying IAS 8; or
• Modified retrospective approach with optional practical expedients - the standard is applied retrospectively
with the cumulative effect of initially applying IFRS 16 recognised in the opening balance of retained
earnings (or other component of equity, as appropriate) at the date of initial application, instead of restating
comparative information.
The lessee applies the election consistently to all of its leases. The Group has not yet determined which
transition approach to apply. As a lessor, the Group is not required to make any adjustments for leases except
where it is an intermediate lessor in a sub-lease. The Group has not yet quantified the impact on its reported
assets and liabilities of the adoption of IFRS 16. The quantitative effect will depend on, inter alia, the transition
method chosen, the extent to which the Group uses the practical expedients and recognition exemptions, and
any additional leases that the Group enters into. The Group expects to disclose its transition approach and
quantitative information before adoption.
2.4 Consolidation
The financial statements of subsidiaries used to prepare the consolidated financial statements were prepared
as of the parent company’s reporting date. The accounting policies of subsidiaries that are consolidated by the
group conform to these policies.
(a) Business combinations
Business combinations are accounted for using the acquisition method as at the acquisition date - i.e. when
control is transferred to the Group. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired.
Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in
profit or loss immediately. Transaction costs are expensed as incurred, except if they are related to the issue of
debt or equity securities.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships.
Such amounts are generally recognised in profit or loss.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent
consideration is classified as equity, then it is not remeasured and settlement is accounted for within equity.
Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss.

(b) Subsidiaries
Subsidiaries are investees controlled by the Group. The Group controls an investee if it is exposed to, or has
rights to, variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee. The financial statements of subsidiaries are included in the consolidated
financial statements from the date on which control commences until the date when control ceases. The financial
statements of the subsidiary used to prepare the consolidated financial statements were prepared as of the
Bank’s reporting date.
(c) Loss of control
When the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary and
any related non-controlling interest and other components of equity. Any resulting gain or loss is recognized in
profit or loss. Any retained interest in the entity is measured at fair value with the change in carrying amount
recognized in profit or loss. Any amounts previously recognised in other comprehensive income in respect of
that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may
mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.
(d) Transactions eliminated on consolidation
Intra-group balances and transactions and any unrealised income and expenses (except foreign currency
transaction gains or losses) arising from intra-group transactions, are eliminated in preparing the consolidated
financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to the
extent that there is no evidence of impairment.
(e) Associates
Associates are all entities over which the Group has significant influence but not control. Investments in
associates are accounted for using the equity method of accounting. Under the equity method, the investment
is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s
share of the profit or loss of the investee after the date of acquisition. If the ownership interest in an associate
is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised
in other comprehensive income is reclassified to profit or loss where appropriate.
Profits and losses resulting from transactions between the Group and its associate are recognised in the group’s
financial statements only to the extent of unrelated investor’s interests in the associates. Unrealised losses are
eliminated unless the transaction provides evidence of an impairment of the asset transferred.
(f) Separate financial statements
In the separate financial statements, investments in subsidiaries and associates are accounted for at cost less
impairment. Cost also includes direct attributable costs of investment.

2.5 Segment reporting
Operating segments are reported in a manner consistent with internal reporting to the Board of Directors, which
has responsibility for allocating resources and measuring performance of operating segments.
All transactions between business segments are conducted on an arm’s length basis, with intra-segment revenue
and costs being eliminated on consolidation. Income and expenses directly associated with each segment
are included in determining business segment performance in accordance with IFRS 8. The Group has the
following business segments: Consumer, Commercial and Corporate which are reportable segments. These
divisions offer different products and services and are managed separately based on the Group’s management
and internal reporting structure.
The business segments are defined as per below:
The credit quality of the portfolio of loans and advances to customers that were neither past due nor impaired
can be assessed by reference to the internal rating system adopted by the Group based on the various business
segments.
(a) Consumer banking - This is personal banking and specializes in serving the Premier, Advantage, Classic and
Direct customers
(b) Commercial banking - This is Business Banking and Medium Local Corporates with the following sub-segments
SMEs, Medium Local corporates and Non-government public sector (schools, faith, NGOs & professional bodies)
(c) Corporate banking - Specializes in serving the public sector, multinational institutions, financial institutions/
international organizations and the Regional Corporate segment of the market.
2.6 Foreign currency translation
Transactions and balances
Transactions in foreign currencies are translated into the respective functional currency of the Group entities
using exchange rates prevailing at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the
functional currency at exchange rates ruling at that date. Non-monetary items that are measured at historical
cost in a foreign currency are translated using the spot exchange rate at the date of the transaction.
Foreign currency differences arising on retranslation are generally recognized in profit or loss.
Foreign exchange gains and losses arising from the translation of items recognized in other comprehensive
income are presented in other comprehensive income.

2.7 Financial assets and liabilities
All financial assets and liabilities have to been recognised in the statement of financial position and measured
in accordance with their assigned category.
2.7.1 Financial assets
The Group classifies its financial assets in the following categories: loans and receivables and available-for-sale
financial assets. Management determines the classification of its financial assets at initial recognition.
(a) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market, other than:
• those that the Group intends to sell immediately or in the short term, which are classified as held for
trading, and those that the Group upon initial recognition designates at fair value through profit or loss;
• those that the Group upon initial recognition designates as available for sale; or
• those for which the holder may not recover substantially all of the initial investment, other than because of
credit deterioration.
Loans and advances include cash and balances with Bank of Ghana, government securities, loans and advances
to banks, loans and advances to customers and some other assets.
Loans and advances are initially measured at fair value plus incremental direct transaction costs, and
subsequently measured at their amortised cost using the effective interest method. Loans and receivables are
reported in the statement of financial position as loans and advances to groups or customers or as investment
securities. Interest on loans is included in profit or loss and is reported as ‘Interest income’. In the case of an
impairment, the impairment loss is reported as a deduction from the carrying value of the loan and recognised
in profit and loss as ‘loan impairment charges’.
(b) Available-for-sale financial assets
Available-for-sale financial assets are financial assets that are intended to be held for an indefinite period of
time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity
prices that are not classified as loans and receivables, held-to-maturity investments or financial assets at fair
value through profit or loss. Available-for-sale financial assets include investment securities: available for sale.
Available-for-sale financial assets are initially measured at fair value, which is the cash consideration including
any transaction costs, and measured subsequently at fair value with gains and losses being recognised in other
comprehensive income, except for impairment losses and foreign exchange gains and losses, until the financial
asset is derecognised.
Unquoted equity securities whose fair value cannot be measured reliably are carried at cost. If an available-
for-sale financial asset is determined to be impaired, the cumulative gain or loss previously recognised in other

(b) Available-for-sale financial assets (cont’d)
comprehensive income is recognised in profit and loss. However, interest is calculated using the effective
interest method, and foreign currency gains and losses on monetary assets classified as available for sale are
recognised in profit and loss. Dividends on available-for-sale equity instruments are recognised in profit and
loss in ‘Dividend income’ when the Group’s right to receive payment is established.
(c) Recognition
The Group uses trade date accounting for regular contracts when recording financial asset transactions. Financial
assets that are transferred to a third party but do not qualify for derecognition are presented in the statement
of financial position as ‘Assets pledged as collateral’, if the transferee has the right to sell or re-pledge them.
2.7.2 Financial liabilities
Financial liabilities include deposits from related entities, banks and customers or debt securities in issue,
convertible bonds and subordinated and other debts for which the fair value option is not applied. Financial
liabilities are measured initially at fair value less, for an item not at fair value through profit or loss, transaction
costs that are directly attributable to its acquisition or issue and subsequently measured at their amortised cost.
2.7.3 Determination of fair value
‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal or, in its absence, the most advantageous
market to which the Group has access at that date. The fair value of a liability reflects its non-performance risk.
When available, the Group measures the fair value of an instrument using the quoted price in an active market
for that instrument. A market is regarded as active if transactions for the asset or liability take place with
sufficient frequency and volume to provide pricing information on an ongoing basis.
If there is no quoted price in an active market, then the Group uses valuation techniques that maximise the use
of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique
incorporates all of the factors that market participants would take into account in pricing a transaction.
The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction
price - i.e. the fair value of the consideration given or received. If the Group determines that the fair value at
initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price
in an active market for an identical asset or liability nor based on a valuation technique that uses only data
from observable markets, then the financial instrument is initially measured at fair value, adjusted to defer the
difference between the fair value at initial recognition and the transaction price. Subsequently, that difference
is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the
valuation is wholly supported by observable market data or the transaction is closed out.
If an asset or a liability measured at fair value has a bid price and an ask price, then the Group measures assets
and long positions at a bid price and liabilities and short positions at an ask price.
Portfolios of financial assets and financial liabilities that are exposed to market risk and credit risk that are

managed by the Group on the basis of the net exposure to either market or credit risk are measured on the
basis of a price that would be received to sell a net long position (or paid to transfer a net short position) for a
particular risk exposure. Those portfolio-level adjustments are allocated to the individual assets and liabilities
on the basis of the relative risk adjustment of each of the individual instruments in the portfolio.
The fair value of a demand deposit is not less than the amount payable on demand, discounted from the first
date on which the amount could be required to be paid.
The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period
during which the change has occurred.
2.7.4 Derecognition
Financial assets are derecognised when the contractual rights to receive cash flows from the financial asset has
expired or the Group has transferred substantially all the risks and rewards of ownership. On derecognition of
a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to
the portion of the asset derecognised) and the sum of (i) the consideration received (including any new asset
obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been recognised in OCI is
recognised in profit or loss.
Any interest in the transferred financial asset that is created or retrieved by the Bank is recognised as a separate
asset or liability. Financial liabilities are derecognised when contractual obligations are discharged, cancelled
or expire.
Collateral (shares and bonds) furnished by the Group under standard repurchase agreements and securities
lending and borrowing transactions are not derecognised because the Group retains substantially all the risks
and rewards on the basis of predetermined repurchase prices, and the criteria for derecognition are therefore
not met. This also applies to certain securitisation transactions in which the Group retains a portion of the risks.
2.7.5 Reclassification of financial assets
The Group may choose to reclassify a non-derivative financial asset held for trading out of the held-for-trading
category, if the financial asset is no longer held for the purpose of selling in the near-term.
Financial assets other than loans and receivables are permitted to be reclassified out of the held for trading
category only in rare circumstances arising from a single event that is unusual and highly unlikely to recur in the
near-term. In addition, the Group may choose to reclassify financial assets that would meet the definition of
loans and receivables out of the held-for-trading or available-for-sale categories, if the Group has the intention
and ability to hold these financial assets for the foreseeable future or until maturity at the date of reclassification.
Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or
amortised cost as applicable, and no reversals of fair value gains or losses recorded before reclassification date
are subsequently made. Effective interest rates for financial assets reclassified to loans and receivables and
held-to-maturity categories are determined at the reclassification date. Further increases in estimates of cash
flows adjust effective interest rates prospectively.

2.7.6 Offsetting financial instrument the decrease cannot yet be identified with
the individual financial assets in the portfolio,
Financial assets and liabilities are offset and the net including:
amount reported when there is a legally enforceable
right to offset the recognised amounts and there is (i) adverse changes in the payment status of
an intention to settle on a net basis or realise the borrowers in the portfolio; and
asset and settle the liability simultaneously. (ii) national or local economic conditions that
correlate with defaults on assets in the portfolio.
2.7.7 Impairment of financial assets
The estimate period between a loss occurring and
(a) Assets carried at amortised cost its identification is determined by local management
for each identified portfolio. In general, the periods
The Group assesses whether there is objective used vary between 3 and 12 months, in exceptional
evidence that a financial asset or group of financial cases, longer periods are warranted.
assets is impaired at each reporting date. A financial
asset or a group of financial assets is considered The Group first assesses whether objective evidence
impaired only if there is objective evidence of of impairment exists individually for financial assets
impairment as a result of one or more events that that are individually significant, and individually
occurred after initial recognition of the asset (a ‘loss or collectively for financial assets that are not
event’) and that loss event (or events) has an impact individually significant. If the Group determines
on estimated future cash flows of the financial asset that no objective evidence of impairment exists for
or group of financial assets that can be reliably an individually assessed financial asset, whether
estimated. significant or not, it includes the asset in a group of
financial assets with similar credit risk characteristics
The criteria that the Group uses to determine and collectively assesses them for impairment.
whether there is objective evidence of an impairment Assets that are individually assessed for impairment
loss include: and for which an impairment loss is or continues
to be recognised are not included in a collective
• significant financial difficulty of the issuer or assessment of impairment.
obligor;
• a breach of contract, such as a default or The amount of loss is measured as the difference
delinquency in interest or principal payments; between the asset’s carrying amount and the present
• granting the borrower, the economic or legal value of estimated future cash discounted at the
reasons relating to the borrower’s financial financial asset’s original effective interest rate. The
difficulty, a concession that the lender would not carrying amount of the asset is reduced through the
otherwise consider; use of an allowance account and the amount of the
• a likely probability that the borrower will enter loss is recognised in profit or loss. If a loan or held-to-
bankruptcy or other financial reorganisation; maturity investment has a variable interest rate, the
• the disappearance of an active market for that discount rate for measuring any impairment loss is
financial asset because of financial difficulties; or the current effective interest rate determined under
• observable data indicating that there is a the contract. As a practical expedient, the Group may
measurable decrease in estimated future cash measure impairment on the basis of an instrument’s
flows from a portfolio of financial assets, since fair value using observable market prices.
initial recognition of those assets, although

Assets carried at amortised cost (Cont’d) Such loans are written off after all the necessary
procedures have been completed and the amount
The calculation of the present value of estimated of loss has been determined. Impairment charges
future cash flows of a collateralised financial asset relating to loans and advances are recognised in
reflects cash flows that may result from foreclosure loan impairment charges whilst impairment charges
less costs for obtaining and selling the collateral, relating to investment securities (held to maturity
whether or not foreclosure is probable. and loans and receivables categories) are recognised
in ‘Net gains/(losses) on investment securities’.
For the purposes of a collective evaluation of
impairment, financial assets are grouped on the basis If, in a subsequent period, the amount of the
of similar credit risk characteristics (that is, on the impairment loss decreases and the decrease can be
basis of the Group’s grading process that considers related objectively to an event occurring after the
asset type, industry, geographical location, collateral impairment was recognised (such as an improvement
type, past-due status and other relevant factors). in the debtor’s credit rating), the previously
Those characteristics are relevant to the estimation of recognised impairment loss is reversed by adjusting
future cash flows for groups of such assets by being the allowance account. The amount of the reversal is
indicative of the debtors’ ability to pay all amounts recognised in profit or loss.
due according to the contractual terms of the assets
being evaluated. (b) Assets classified as available-for-sale
Future cash flows in groups of financial assets that are The Group assesses whether there is objective
collectively evaluated for impairment are estimated evidence that a financial asset or a group of financial
on the basis of the contractual cash flows of the assets is impaired at each reporting date. In the
assets in the group and historical loss experience for case of equity investments classified as available
assets with credit risk characteristics similar to those for sale, a significant or prolonged decline in the
in the group. Historical loss experience is adjusted fair value of the security below its cost is objective
on the basis of current observable data to reflect evidence of impairment resulting in the recognition
the effects of current conditions that did not affect of an impairment loss. If any such evidence exists
the period on which the historical loss experience is for available-for-sale financial assets, the cumulative
based and to remove the effects of conditions in the loss – measured as the difference between the
historical period that do not currently exist. acquisition cost and the current fair value, less any
impairment loss on that financial asset previously
Estimates of changes in future cash flows for groups recognised in profit or loss – is removed from equity
of assets should reflect and be directionally consistent and recognised in profit or loss. Impairment losses
with changes in related observable data from period to recognised in profit or loss on equity instruments are
period including property prices, payment status and not reversed through profit or loss. If, in a subsequent
other factors indicative of changes in the probability period, the fair value of a debt instrument classified
of losses and their magnitude. The methodology and as available for sale increases and the increase can
assumptions used for estimating future cash flows objectively be related to an event occurring after
are reviewed regularly by the Group to reduce any the impairment loss was recognised in profit or
differences between loss estimates and actual loss loss, the impairment loss is reversed through other
experience. comprehensive income.
When a loan is uncollectible, it is written off

against the related allowance for loan impairment.

(c) Renegotiated loans recognised at fair value. The impairment loss before
an expected restructuring is measured as follows:
Loans that are either subject to collective
impairment assessment or individually significant • If the expected restructuring will not result in
and whose terms have been renegotiated are no derecognition of the existing asset, then the
longer considered to be past due but are treated estimated cash flows arising from the modified
as performing loans, when performance has been financial asset are included in the measurement
confirmed. In subsequent years, the asset is of the existing asset based on their expected
considered to be past due and disclosed as such only timing and amounts discounted at the original
if renegotiated again. effective interest rate of the existing financial
asset.
If the terms of a financial asset are renegotiated or • If the expected restructuring will result in
modified or an existing financial asset is replaced derecognition of the existing asset, then the
with a new one due to financial difficulties of the expected fair value of the new asset is treated
borrower, then an assessment is made of whether as the final cash flow from the existing financial
the financial asset should be derecognised. If the asset at the time of its derecognition. This
cash flows of the renegotiated asset are substantially amount is discounted from the expected date
different, then the contractual rights to cash flows of derecognition to the reporting date using the
from the original financial asset are deemed to original effective interest rate of the existing
have expired. In this case, the original financial financial asset.
asset is derecognised and the new financial asset is
2.8 Interest income and expenses
Interest income and expense for all interest-bearing financial instruments are recognised within ‘interest income’
and ‘interest expense’ in profit or loss using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial asset or a financial
liability and allocating interest income or interest expense over the relevant period. The effective interest rate
is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the
financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or
financial liability.
When calculating the effective interest rate, the Group estimates cash flows considering all contractual terms
of the financial instrument, including prepayment options, but does not consider future credit losses. The
calculation includes all fees and points paid or received between parties to the contract that are an integral part
of the effective interest rate, transaction costs and all other premiums or discounts.
2.9 Fees and commissions income
Fees and commissions are generally recognised on an accrual basis when the service has been provided. Loan
commitment fees for loans that are likely to be drawn down are deferred, together with related direct costs, and
recognised as an adjustment to the effective interest rate on the loan. Loan syndication fees are recognised as
revenue when the syndication has been completed and the Group has retained no part of the loan package for
itself or retained a part at the same effective interest rate as the other participants.

2.10 Dividend income
Dividends are recognised when the entity’s right to receive payment is established.
2.11 Net trading income
Net trading income comprises gains less losses relating to trading assets and liabilities, including realised and
unrealised fair value changes, interest and foreign exchange differences.
2.12 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with the Central Bank
and highly liquid financial assets with original maturities of three (3) months or less from the acquisition date that
are subject to an insignificant risk of changes in their fair value and are used by the Group in the management
of its short-term commitments.
Cash and cash equivalents are carried at amortised cost.
2.13 Leases
(i) Lease assets – Lessee
Leases that the Group assumes substantially all the risks and rewards of ownership of the underlying asset are
classified as finance lease. Upon initial recognition, the leased asset is measured at an amount equal to the
lower of its fair value and present value of minimum lease payments. Subsequent to initial recognition, the
leased asset is accounted for in accordance with the accounting policy applicable to that asset. All other leases
are classified as operating leases.
(ii) Lease payments – Lessee
Payments made under operating leases are charged to profit or loss on a straight line basis over the period of
the lease. When an operating lease is terminated before the lease has expired, any payment required to be
made by the lessor by way of penalty is recognised as an expense in the period in which termination takes place.
Minimum lease payments under finance leases are apportioned between finance expense and the outstanding
lease liability. The finance expense is allocated to each period so as to produce a constant periodic rate of
interest on the remaining balance of the liability.
(iii) Lease assets – Lessor
If the Group is the lessor in a lease agreement that transfers substantially all of the risks and rewards incidental
to ownership of the asset to the lessee, then the arrangement is classified as a finance lease and a receivable
equal to the net investment in the lease is recognised and presented within loans and advances.

2.14 Property and equipment
(i) Recognition and measurement
Except for Land and Buildings which are stated at revalued amounts, all other property and equipment are
stated at cost less depreciation. Cost includes expenditure that is directly attributable to the acquisition of the
items.
Buildings are shown at valuation less subsequent depreciation. The fair values are determined every three (3)
years by external, independent, professional valuers. Any accumulated depreciation at the date of revaluation
is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued
amount of
the asset. The revaluation increase arising on the revaluation of property is credited to the revaluation surplus
in shareholders’ equity. Decreases that offset previous increases of the same asset are charged against the non-
distributable reserve. All other decreases are charged to profit or loss.
(ii) Subsequent costs
Subsequent expenditures are included in the asset’s carrying amount or are recognised as a separate asset only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of
the item can be measured reliably. The carrying amount of a replaced part is derecognised. All other repair and
maintenance costs are charged to profit or loss during the financial period in which they are incurred.
(iii) Depreciation
Depreciation is recognised in profit or loss on a straight line basis to write off the gross value less residual
amounts over their estimated useful lives. The estimated useful lives for the current and comparative periods
are as follows:
Motor Furniture and

Buildings Computers
Vehicles equipment
40 4 Years Years
5Years
3Years

(iii) Depreciation (Cont’d)
Freehold land is not depreciated.
Depreciation methods, residual values and useful lives are reviewed, and adjusted if appropriate, at the end
of each reporting period. Assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable.
(iv) Capital work in progress
Property and equipment under construction is stated at initial cost and depreciated from the date the asset is
made available for use over its estimated useful life. Assets are transferred from capital work in progress to an
appropriate class of property and equipment when commissioned and ready for its intended use.
(v) Derecognition
Property and equipment are derecognised upon disposal or when no future economic benefits are expected to
flow to the Group from either their use or disposal. Gains or losses on derecognition of an item of property and
equipment are determined by comparing the proceeds from disposal, if applicable, with the carrying amount of
the item and are recognised directly in profit or loss.
2.15 Intangible assets
Computer software
Intangible assets comprise computer software licences. Intangible assets are recognised at cost. Intangible
assets with a definite useful life are amortised using the straight-line method over their estimated useful life,
is 3 years. At the end of each reporting period, intangible assets are reviewed for indications of impairment
or changes in estimated future economic benefits. If such indications exist, the intangible assets are analysed
to assess whether their carrying amount is fully recoverable. An impairment loss is recognised if the carrying
amount exceeds the recoverable amount.
2.16 Assets held for sale
Non-current assets are classified as held-for-sale if it is highly probable that they will be recovered primarily
through sale rather than through continuing use.
Such assets are generally measured at lower of their carrying amount and fair value less costs to sell. Impairment
losses on initial classification as held-for-sale and subsequent gains and losses on remeasurement are recognized
in profit or loss.
Once classified as held-for-sale, property and equipment are no longer amortised or depreciated.

2.17 Impairment of non-financial assets
The carrying amounts of the Group’s non-financial assets other than deferred tax assets are reviewed at each
reporting date to determine whether there is any indication of impairment. If any such indication exists then the
asset’s recoverable amount is estimated. An impairment loss is recognized if the carrying amount of an asset or
its cash generating unit (CGU) exceeds its recoverable amount.
The recoverable amount is the greater of its value in use and its fair value less costs of disposal. In assessing
value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rates
that reflect current market assessments of the time value of money and risks specific to the asset.
A previously recognised impairment loss is reversed where there has been a change in circumstances or in the
basis of estimation used to determine the recoverable value, but only to the extent that the asset’s net carrying
amount does not exceed the carrying amount of the asset that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.
2.18 Income tax
(a) Current tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement,
except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In
which case, the corresponding tax is recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax laws enacted or substantially enacted at the
reporting date and any adjustments to tax payable in respect of previous years.
(b) Deferred tax
Deferred tax is recognised, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred tax liabilities are not
recognised if they arise from the initial recognition of goodwill or from the initial recognition of an asset or
liability in a transaction other than a business combination that at the time of the transaction neither affects
accounting nor taxable profit or loss. Deferred tax is determined using tax rates that have been enacted or
substantially enacted by the reporting date and are expected to apply when the related deferred tax asset or
liability is realised.
Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be
available against which the temporary differences can be utilized.
Deferred tax is provided on temporary differences except for deferred tax liabilities where the timing of reversal
of the temporary difference is controlled by the Group and it is probable that the temporary difference will not
reverse in the forseeable future.

(b) Defered tax (Cont’d)
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by
the same taxation authority or either the same entity or different taxable entities where there is an intention to
settle balances on a net basis.
2.19 Provisions and Contingent Liabilities
Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past
events that can be reliably estimated and it is probable that an outflow of resources will be required to settle the
obligation. Restructuring provisions comprise lease termination penalties and employee termination payments.
Provisions are not recognised for future operating losses.
Where there are a number of similar obligations which are likely to result in an outflow to settle related classes
of obligations as a whole, a provision is recognised even if the likelihood of an outflow with respect to any one
item included in the same class of obligations may be small.
Provisions are measured at the present value of expenditures expected to be required to settle obligations
using pre-tax rates that reflect current market assessments of the time value of money and risks specific to the
obligation. An increase in the provision due to passage of time is recognised as an interest expense.
Contingent liabilities
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the group, or a present obligation that arises from past events but is not recognised because it is not probable
that an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount
of the obligation cannot be measured with sufficient reliability. If the likelihood of an outflow of resources is
remote, the possible obligation is neither a provision nor a contingent liability and no disclosure is made.
2.20 Financial guarantee contracts and loan commitments
Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the
holder for a loss it incurs because a specified debtor fails to make payments when due, in accordance with the
terms of a debt instrument. Such financial guarantees are given to financial institutions and other bodies on
behalf of customers to secure loans and overdrafts. Loan commitments’ are firm commitments to provide credit
under pre-specified terms and conditions.
Financial guarantees and loan commitments are initially recognised at the fair value and amortised over the life
of contract. The financial guarantee or loan commitment is subsequently carried at the higher of the amortised
amount and the present value of any expected payments, when payment becomes probable.

2.21 Stated capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
are recognized as a deduction from equity net of any tax effects.
Dividends on ordinary shares
Dividends on ordinary shares are recognised in equity in the period in which they are approved by the
shareholders.
2.22 Fiduciary activities
The Group acts as trustees and in other fiduciary capacities that result in the holding or placing of assets on
behalf of individuals, trusts, retirement benefit plans and other institutions. These assets and income arising
thereon are excluded from these financial statements, as they are not assets of the Group.
2.23 Post balance sheet events
Events subsequent to the balance sheet date are reflected in the financial statements only to the extent that
they relate to the year under consideration and the effect is material.
2.24 Employment benefits
Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit
or loss when they are due.
Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided. A provision is recognised for the amount expected to be paid under short-term cash
bonus or profit sharing plans, if the Bank has a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee and the obligation can be estimated reliably.
2.25 Earnings per share
The Bank presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to ordinary shareholders by the number of ordinary shares outstanding
during the period. The Bank has no convertible notes and share options, which could potentially dilute its EPS
and therefore the Bank’s Basic and diluted EPS are essentially the same.

3. FINANCIAL RISK MANAGEMENT
The Group’s business involves taking on risks in a targeted manner and managing them professionally. The
core functions of the Group’s risk management are to identify all key risks for the Group, measure these risks,
manage the risk positions and determine capital allocations.
The Group regularly reviews its risk management policies and systems to reflect changes in markets, products
and best market practices. The Group’s aim is to achieve an appropriate balance between risk and return and
minimise potential adverse effects on the Group’s financial performance.
The Group defines risk as the possibility of losses or profits foregone, which may be caused by internal or
external factors.
Risk management is carried out by the risk department under policies approved by the Board of Directors.
The department identifies and evaluates financial risks in close co-operation with the Group’s operating units.
The Board provides guiding principles for overall risk management, as well as written policies covering specific
areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and
non-derivative financial instruments. In addition, internal audit is responsible for the independent review of risk
management and the control environment.
The risks arising from financial instruments to which the Group is exposed are financial risks; which includes
credit risk, liquidity risk, market risk and operational risk (which are discussed below).
Credit Risk
Credit risk is the risk of suffering financial loss, should any of the Group’s customers, market counterparties fail
to fulfil their contractual obligations to the Group. Credit risk arises mainly from commercial and consumer loans
and advances, credit cards, and loan commitments arising from such lending activities, but can also arise from
credit enhancement provided, such as financial guarantees, letters of credit, endorsements and acceptances.
The Group is also exposed to other credit risks arising from investments in debt securities and other exposures
arising from trading activities (‘trading exposures’), including non-equity trading portfolio assets, derivatives
and settlement balances with market counterparties and reverse repurchase loans. Credit risk is the single
largest risk for the Group’s business; management carefully manages its exposure to credit risk. Credit risk
management and control are centralised in a credit risk management team, which reports to the Board of
Directors and heads of each business unit regularly.
Credit Concentration Risk
Credit concentration risk is the risk of loss to the Bank arising from excessive concentration of exposure to a
single counterparty, industry sector, product or geographic area. Large exposure limits have been established
under the Bank’s credit policy in order to avoid excessive losses from any single counter-party who is unable
to fulfill its payment obligations. These risks are monitored on an ongoing basis and subject to annual or more
frequent reviews when considered necessary.

Credit Mitigation
Potential credit losses from any given account, customer or portfolio are mitigated using a range of tools such as
collateral, credit insurance and other guarantees. The reliance that can be placed on these mitigants is carefully
assessed in the light of issues such as legal certainty and enforceability, market valuation and counterparty risk
of the guarantor. Risk mitigation policies determine the eligibility of collateral types.
Collateral
In order to proactively respond to credit deterioration, the Bank employs a range of policies and practices to
mitigate credit risk. The most traditional of these is the taking of security for funds advanced, which is common
practice. Collateral is held to mitigate credit risk exposures. Collateral types that are eligible for risk mitigation
include: cash; residential, commercial and industrial property; property and equipment such as motor vehicles,
plant and machinery, bank guarantees and floating charge over other assets.
The risk mitigation policy prescribes the frequency of valuation for different collateral types, based on the level
of price volatility of each type of collateral and the nature of the underlying product or risk exposure. Where
appropriate, collateral values are adjusted to reflect current market conditions. Longer-term finance and lending
to corporate entities are generally secured; individual credit facilities are generally unsecured. In addition, in
order to minimize credit losses, the Bank seeks additional collateral from counterparties as soon as impairment
indicators are noticed for relevant individual loans and advances.
Credit Related Commitments
Documentary and commercial letters of credit are written undertakings by the Bank on behalf of a customer
authorising a third party to draw drafts on the Bank up to a stipulated amount under specific terms and
conditions. The primary purpose of these instruments is to ensure that funds are available to a customer as
required.
Guarantees and standby letters of credit carry less risk than direct loans. These arrangements are collateralised
by the underlying shipments of goods. The likelihood of loss amounts is far less than the entire commitment
as most commitments to extend credit of this nature are contingent upon the customer maintaining specific
cash in margin accounts. The Bank monitors the term to maturity of credit commitments because longer-term
commitments generally have a greater degree of credit risk than shorter-term commitments.
Regulatory Impairment
An account is considered to be in default when payment is not received on due date. Accounts that are overdue
by more than 90 days are considered delinquent. These accounts are closely monitored and subjected to a
collection process. The process used for impairment is based on Bank of Ghana guidelines which recognize
cash as a credit mitigant. Individual impairments are made for outstanding amounts depending on the number
of days past due with full impairment made after 360 days. Loans and advances less than 90 days past due are
generally not considered impaired unless other information is available to indicate otherwise.

Regulatory impairment (Cont’d)
The Bank of Ghana Guideline is as set out below:
Grade Description Number of days Impairment (%)

Current Less than 30 days 1
Other Loans Exceptionally Mentioned (OLEM) 30 to less than 90 days 10
Substandard 90 to less than 180 days 25
Doubtful 180 to less than 360 days 50
Loss 360 days and above 100
3.1.1 Credit risk measurement
(a) Loans and advances (including loan commitments and guarantees)
The estimation of credit exposure is complex and requires the use of models, as the value of a product varies
with changes in market variables, expected cash flows and the passage of time. The assessment of credit risk of
a portfolio of assets entails further estimations as to the likelihood of defaults occurring, associated loss ratios
and of default correlations between counterparties.
The Group has developed models to support the quantification of credit risk. These rating and scoring models
are used for all key credit portfolios and form the basis for measuring default risks. In measuring credit risk of
loans and advances at a counterparty level, the Group considers three components: (i) the ‘probability of default’
(PD) by the client or counterparty on its contractual obligations; (ii) current exposures to the counterparty and its
likely future development, from which the Group derive the ‘exposure at default’ (EAD); and (iii) the likely recovery
ratio on defaulted obligations (the ‘loss given default’) (LGD). The models are reviewed regularly to monitor their
robustness relative to actual performance and amended as necessary to optimise their effectiveness.
(b) Debt securities
For debt securities, external ratings such as Standard & Poor’s rating or their equivalents are used by Group
Treasury to manage credit risk exposures, supplemented by the Group’s own assessment through the use of
internal rating tools.
Longer-term finance and lending to corporate entities are generally secured. In addition, in order to minimise
credit loss, the Group seeks additional collateral from counterparties as soon as impairment indicators are
identified for relevant individual loans and advances.
Collateral held as security for financial assets other than loans and advances depends on the nature of the
instrument.

3.1.2 Impairment policies
Impairment allowances are recognised for financial reporting purposes only for losses that have been incurred
at the reporting date based on objective evidence of impairment.
3.1.3 Maximum exposure to credit risk before collateral held
Credit risk exposures relating to on-balance sheet assets were as follows:
The Group The Bank

2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Assets
Cash and cash equivalents 2,722,690 2,998,879 2,739,494 2,997,543
Investment securities 2,518,542 641,010 2,462,208 578,985
Loans and advances to customers 2,685,468 3,480,544 2,685,759 3,480,471
7,926,700 7,120,433 7,887,461 7,056,999
Credit risk exposures relating to

off-balance sheet items are as follows:
Financial guarantees 1,368,657 611,255 1,368,657 611,255
Loan commitments and other credit related liabilities 977,504 3,809,333 977,504 3,809,333
2,346,161 4,420,588 2,346,161 4,420,588
At 31 December 10,272,861 11,541,021 10,233,622 11,477,587
The above represents the maximum exposure to credit risk at 31 December 2017 and 2016, without taking
account of any collateral held or other credit enhancements attached. For on-balance-sheet assets, the
exposures set out above are based on net carrying amounts reported in the consolidated statement of financial
position.
As shown above, 34% (2016: 48%) of the total on balance sheet exposure is derived from loans and advances to
customers. Included in cash and cash equivalents and investment securities are loans and advances to banks
and investments held in government securities which forms 21% (2016: 28%) and 32% (2016: 8%) of the total on
balance sheet exposure respectively.
Management is confident in its ability to continue controlling and sustaining minimal exposure to credit risk
arising from both its loans and advances portfolio and investment securities.
3.1.4 Credit quality per class of financial asset
The credit quality of financial asset is managed by the group using internal credit ratings. The table below shows
the credit quality by class of financial assets and the allowance for impairment losses held by the group against
those assets.

The Group Loans & advances Loans & advances Lending commitments
to customers to bank Investment securities Cash equivalents & financial guarantees
2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Neither past due or impaired 2,259,769 2,890,518 1,625,736 2,270,570 2,518,542 641,010 1,096,954 728,309 2,346,161 4,420,588
Past due but not impaired 198,053 110,324 - - - - - - - -
Individually impaired 443,481 566,267 - - - - - - - -
Gross Less: 2,901,303 3,567,109 1,625,736 2,270,570 2,518,542 641,010 1,096,954 728,309 2,346,161 4,420,588
allowance for impairment (215,835) (86,565) - - - - - - - -
(a) Maximum exposure credit risk
Net 2,685,468 3,480,544 1,625,736 2,270,570 2,518,542 641,010 1,096,954 728,309 2,346,161 4,420,588
The Bank Loans & advances Loans & advances Lending commitments
to customers to bank Investment securities Cash equivalents & financial guarantees
2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Neither past due or impaired 2,259,754 2,890,140 1,642,540 2,269,234 2,462,208 578,985 1,096,954 728,309 2,346,161 4,420,588
Past due but not impaired 198,053 110,324 - - - - - - - -
Individually impaired 443,481 566,267 - - - - - - - -
Gross Less: 2,901,288 3,566,731 1,642,540 2,269,234 2,462,208 578,985 1,096,954 728,309 2,346,161 4,420,588
allowance for impairment (215,529) (86,260) - - - - - - - -
Net 2,685,759 3,480,471 1,642,540 2,269,234 2,462,208 578,985 1,096,954 728,309 2,346,161 4,420,588
Amounts relating to Balances with Bank of Ghana included in cash and cash equivalents and investment securities were held with reputable institutions and are
still collectible in full and therefore no impairment losses were recognised on them.

The Group Consumer Commercial CIB
Overdrafts Credit cards Term loans Mortgages Overdrafts Term loans Overdraft Term loans TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 31 December 2017
Grades
Current 9,013 7,349 337,812 37,481 155,309 209,545 377,144 1,126,115 2,259,768
OLEM - - - - - - - - -
9,013 7,349 337,812 37,481 155,309 209,545 377,144 1,126,115 2,259,768
At 31 December 2016
Grades
Current 11,527 9,880 194,396 181,372 122,004 118,752 523,135 1,729,452 2,890,518
OLEM - - 21 - - 19,354 7,957 84,302 111,634
11,527 9,880 194,417 181,372 122,004 138,106 531,092 1,813,754 3,002,152
(b) Loans and advances neither past due nor impaired
The Bank Consumer Commercial CIB

Overdrafts Credit cards Term loans Mortgages Overdrafts Term loans Overdraft Term loans TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 31 December 2017
Grades
Current 9,013 7,349 337,812 37,481 155,309 209,545 377,144 1,126,101 2,259,754
OLEM - - - - - - - - -

9,013 7,349 337,812 37,481 155,309 209,545 377,144 1,126,101 2,259,754
At 31 December 2016
Grades
Current 11,527 9,880 194,396 181,372 122,004 118,752 523,135 1,729,074 2,890,140
OLEM - - 21 - - 19,354 7,957 84,302 111,634
11,527 9,880 194,417 181,372 122,004 138,106 531,092 1,813,376 3,001,774
The credit quality of the portfolio of loans and advances to customers that were neither past due nor impaired
can be assessed by reference to the internal rating system adopted by the Group based on the various business
segments.
As at the end of the year 2017, the Bank operated the following business units:
a)
• Consumer banking - This is personal banking and specializes in serving the Premier, Advantage, Classic and
Direct customers
b)
• Commercial Banking - This is Business Banking and Medium Local Corporates with the following sub-
segments SMEs, Medium Local corporates and Non-government public sector (schools, faith-based
organisations, NGOs & professional bodies)
c)
• Corporate & Investment Banking - Specializes in serving the public sector, multinational institutions, financial
institutions/international organizations and the Regional Corporate segment of the market.

(c) Loans and advances past due but not impaired
Loans and advances less than 90 days past due are not considered impaired, unless other information is

available to indicate the contrary. Gross amounts of loans and advances by class of customers that were past

due but not impaired were as follows:
The Group and The Bank Consumer Commercial Corporate

Overdrafts Term loans Overdrafts Term loans Overdrafts Term loans TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 31 December 2017
Past due up to 30 days - - - - - - -
Past due 30-60 days - - - - - - -
Past due 60-90 days - - - 3,600 18,793 175,660 198,053
- - - 3,600 18,793 175,660 198,053
At 31 December 2016
Past due up to 30 days - 54 - - - 109,752 109,806
Past due 30-60 days - 4 - 514 - - 518
Past due 60-90 days - - - - - - -
- 58 - 514 - 109,752 110,324
(d) Loans and advances individually impaired
A breakdown of the gross amount of individually impaired loans and advances by class, along with the fair value
of related collateral held by the bank as security, is as follows:
The Group Consumer Commercial Corporate

GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 31 December 2017
Individually impaired loans - 1,446 - 3,432 - 438,603 443,481
Impairment allowance - 1,091 - 2,968 - 173,999 178,058
Fair value of collateral - - - - - 50,216 50,216
At 31 December 2016
Individually impaired loans - - 67 19,165 7,957 539,078 566,267
Impairment allowance - - 63 13,500 6,862 23,014 43,439
Fair value of collateral - - 1,590 15,363 1,407 16,380 34,740

(D) LOANS AND ADVANCES INDIVIDUALLY IMPAIRED (CONT’D)
The Bank Consumer Commercial Corporate

GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 31 December 2017
Individually impaired loans - 1,446 - 3,432 - 438,603 443,481
Impairment allowance - 1,091 - 2,968 - 173,999 178,058
Fair value of collateral - - - - - 50,216 50,216
At 31 December 2016
Individually impaired loans - - 67 19,165 7,957 539,078 566,267
Impairment allowance - - 63 13,500 6,862 23,014 43,439
Fair value of collateral - - 1,590 15,363 1,407 16,380 34,740
(e) Loans and advances renegotiated
Restructuring activities include extended payment arrangements, approved external management plans,
modification and deferral of payments. Restructuring policies and practices are based on indicators or criteria
which, in the judgment of management, indicate that payment will most likely continue.
These policies are kept under continuous review. Restructuring is most commonly applied to term loans.
Loans and advances to customers
The Group and The Bank 2017 2016

GH¢’000 GH¢’000
Continuing to be impaired after restructuring (included in non-performing loans) 124,659 1,560
Non-impaired after restructuring – would otherwise have been impaired 53,197 104,451
(f) Repossessed collateral
During the year ended 31 December, the Group took possession of the following collateral held as security:

Collateral Related loan Collateral Related loan
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Commercial property 9,303 56,113 66,063 101,554

Vehicles and equipment - - 211 932
9,303 56,113 66,274 102,486
Repossessed properties are sold as soon as practicable and the proceeds used to reduce outstanding
indebtedness. The group does not generally use the non-cash collateral for its own operations.

(g) Loans and advances per Bank of Ghana Classification
Set out below is an analysis of the gross (allowance for impairment) amounts of individually impaired loans and
advances by risk grade.
At 31 December 2017 2016

Gross Gross
GH¢’000 GH¢’000
Current 2,312,899 2,890,518

Olem 6,896 111,634
Substandard 3,272 448,625
Doubtful 496,408 30,125
Loss 81,828 86,207
2,901,303 3,567,109
3.2 Market risk 3.2.2 Interest rate risk
Market risk is the risk of loss arising from adverse Interest rate risk is the exposure of current and
changes in market conditions (interest rates, future earnings and capital to adverse changes in the
exchange rates and equity prices) during the year. level of interest rates. Exposure to interest rate risk
Positions that expose the Group to market risk can result from a variety of factors, including:
can be trading or non-trading related. Trading risk
comprises positions that the Group holds as part of • Differences between the timing of market
its trading or market-making activities, whereas non- interest rate changes and the timing of cash
trading risk includes discretionary positions that the flows (repricing risk);
Group undertake for liquidity. • Changes in the market interest rates producing
different effects on yields on similar instruments
3.2.1 Risk identification with different maturities (yield curve risk); and
• Changes in the level of market interest rates
The Group identifies market risk through daily producing different effects on rates received
monitoring of levels and profit or loss balances of or paid on instruments with similar repricing
trading and non-trading positions. The Market Risk characteristics (basis risk).
Controller together with the risk department monitor
daily trading activities to ensure that risk exposures The Asset and Liability Management (“ALM”) process,
taken are within approved limits and overall risk managed through ALCO, is used to manage interest
tolerance levels set by the Board. In addition, Assets rate risks associated with the non-trading book. Gap
and Liabilities Committee (ALCO) members, the analysis is used in measuring interest rate risk. It
Treasurer, the Chief Finance Officer and the Country compares the values of interest rate sensitive assets
Risk Manager monitor market risk factors that affect and liabilities that mature or are re-priced at various
the value of trading and non-trading positions as time periods in the future. Subjective judgment/
well as income streams on non-trading portfolios on assumptions are made about the behavior of assets
a daily basis. They also track liquidity indicators to and liabilities which do not have specific contractual
ensure that Group subsidiaries meet their financial maturity or re-pricing dates. Interest rate risk
obligations at all times. evaluates potential volatility to net interest income
caused by changes in market interest rates and

3.2.2 Interest rate risk (Cont’d)
represents the most significant market risk exposure to the Group’s non-trading book.
The Group uses gap analysis to measure its exposure to interest rate risk. Through this analysis, it compares the
values of interest rate sensitive assets and liabilities that mature or reprice at various time periods in the future.
The Group may make judgmental assumptions about the behaviour of assets and liabilities which do not have
specific contractual maturity or repricing dates.
The table below summarises the repricing profiles of the bank’s financial instruments and other assets and
liabilities at 31 December 2017. Items are allocated to time periods with reference to the earlier of the next
contractual interest rate re-pricing and maturity dates.
The Group
At 31 December 2017 Up to 1 1 - 3 3 - 12 Over Non-Interest
month months months 1 year bearing TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Assets
Cash and Bank Balances 373,414 641,150 2,073 - 1,936,116 2,952,753
Investment securities 31,887 36,322 173,207 2,274,978 2,148 2,518,542
Loans and advances to customers 416,714 207,352 329,391 1,425,531 306,480 2,685,468
Other assets - - - - 375,174 375,174
Total financial assets 822,015 884,824 504,671 3,700,509 2,619,918 8,531,937
Liabilities
Deposits from Banks 396,366 23,177 157,669 - 29,240 606,452
Customer deposits 227,218 51,562 322 353,106 5,909,440 6,541,648
Borrowings - - 42,677 160,523 - 203,200
Other liabilities - - - - 679,753 679,753
Total financial liabilities 623,584 74,739 200,668 513,629 6,618,433 8,031,053
Total interest re-pricing gap 198,431 810,085 304,003 3,186,880 (3,998,515) 500,884
At 31 December 2016
Assets
Cash and bank balances 563,541 651,697 222,269 - 1,755,695 3,193,202
Investment securities 294,769 31,500 34,122 278,471 2,148 641,010
Loans and advances to customers 958,849 376,482 527,162 1,618,051 - 3,480,544
Other assets - - - - 311,497 311,497
Total financial assets 1,817,159 1,059,679 783,553 1,896,522 2,069,340 7,626,253
Liabilities
Customer deposits 1,030,001 26,356 75,044 863 4,284,652 5,416,916
Borrowings - - 535 232,209 - 232,744
Total financial liabilities 1,375,285 90,398 144,795 233,072 5,242,443 7,085,993

3.2.2 Interest rate risk (Cont’d)
The Bank
At 31 December 2017 Up to 1 1 - 3 3 - 12 Over Non-Interest
month months months 1 year bearing TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Assets
Cash and bank balances 381,816 647,598 4,027 - 1,936,116 2,969,557
Investment securities 5,319 13,385 166,982 2,274,374 2,148 2,462,208
Loans and advances to customers 417,005 207,352 329,391 1,425,531 306,480 2,685,759
Other assets - - - - 391,320 391,320
Total financial assets 804,140 868,335 500,400 3,699,905 2,636,064 8,508,844
Liabilities
Customer deposits 227,218 51,562 322 353,106 5,815,610 6,447,818
Borrowings - - 42,677 160,523 - 203,200
Total financial liabilities 732,020 74,739 200,668 513,629 6,520,671 8,041,727
At 31 December 2016
Assets
Cash and cash equivalents 562,857 651,132 222,182 - 1,755,695 3,191,866
Investment securities 264,857 6,111 27,939 277,930 2,148 578,985
Loans and advances to customers 958,839 376,419 527,162 1,618,051 - 3,480,471
Other assets - - - - 324,436 324,436
Total financial assets 1,786,553 1,033,662 777,283 1,895,981 2,082,279 7,575,758
Liabilities
Customer deposits 1,030,001 26,356 75,044 863 4,184,361 5,316,625
Borrowings - - 535 232,209 - 232,744
Total financial liabilities 1,375,285 90,398 144,795 233,072 5,222,942 7,066,492
3.2.3 Foreign exchange risk
Foreign exchange risk is measured through the statement of comprehensive income. The Group takes on
exposure to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position

3.2.3 Foreign exchange risk (Cont’d)
and cash flows. The Board sets limits on the level of exposure by currency and in total for both overnight and
intra-day positions. The table below summarises the company’s exposure by currency exchange rates on its
financial position and cash flows.
The Group
At 31 December 2017 EUR USD GBP GH¢ Others TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Assets
Cash and cash equivalents 171,642 1,487,906 84,140 1,200,149 8,916 2,952,753
Investment securities - 1,087,009 - 1,431,533 - 2,518,542
Loans and advances to customers 1,868 849,203 9 1,834,388 - 2,685,468
Other assets 60,989 19,127 - 295,057 1 375,174
Total 234,499 3,443,245 84,149 4,761,127 8,917 8,531,937
Liabilities
Deposits from Banks 19,595 233,243 394 351,884 1,336 606,452
Deposits due to customers 152,218 2,814,909 83,029 3,487,568 3,924 6,541,648
Other liabilities 2,202 193,929 491 481,073 2,058 679,753
Borrowings - 201,116 - 2,084 - 203,200
Total 174,015 3,443,197 83,914 4,322,609 7,318 8,031,053
Net on balance sheet position 60,484 48 235 438,518 1,599 500,884
Credit commitments 242,996 228,725 - 301,064 204,719 977,504
At 31 December 2016
Assets
Investment securities - 260,427 - 380,583 - 641,010
Loans and advances to customers 3,031 1,413,115 - 1,662,345 402,053 3,480,544
Other assets 751 18,031 6 292,709 - 311,497
Total 200,027 3,414,098 69,911 3,528,303 413,914 7,626,253
Liabilities
Deposits from Banks 41,172 411,246 489 89,949 - 542,856
Other liabilities 816 348,413 76 544,172 - 893,477
Borrowings - 227,934 - 4,810 - 232,744
Total 177,311 3,353,757 66,551 3,158,378 329,996 7,085,993
Net on balance sheet position 22,716 60,341 3,360 369,925 83,918 540,260
Credit commitments 948,200 892,512 - 1,174,788 793,833 3,809,333

3.2.3 Foreign excgange risk (Cont’d)
The Bank
At 31 December 2017 EUR USD GBP GH¢ Others TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Assets
Investment securities - 1,087,009 - 1,375,199 - 2,462,208
Loans and advances to customers 1,868 849,203 9 1,834,679 - 2,685,759
Other assets 60,989 19,127 - 311,203 1 391,320
Total 234,499 3,443,245 84,149 4,738,035 8,916 8,508,844
Liabilities
Other liabilities 2,202 193,929 491 477,141 2,058 675,821
Borrowings - 201,116 - 2,084 - 203,200
Total 174,015 3,443,197 83,914 4,333,283 7,318 8,041,727
Net on balance sheet position 60,484 48 235 404,752 1,598 467,117
Credit commitments 242,996 228,725 - 301,064 204,719 977,504
At 31 December 2016
Assets
Investment securities - 260,427 - 318,558 - 578,985
Loans and advances to customers 3,031 1,360,856 6 1,714,532 402,046 3,480,471
Other assets 751 18,031 - 305,653 1 324,436
Total 200,027 3,361,839 69,911 3,530,074 413,907 7,575,758
Liabilities
Other liabilities 816 340,272 76 545,671 - 886,835
Borrowings - 227,934 - 4,810 - 232,744
Total 177,311 3,345,616 66,551 3,073,626 403,388 7,066,492
Net on balance sheet position 22,716 16,223 3,360 456,448 10,519 509,266
Credit commitments 948,200 892,512 - 1,174,788 793,833 3,809,333

3.2.3 Foreign exchange risk (Cont’d)
The following significant exchange rates applied during the year - GH¢1 to:
The Group and The Bank Average Rate Reporting Rate

2017 2016 2017 2016
USD1 4.3504 3.9120 4.4157 4.2002
GBP1 5.5962 5.2896 5.9669 5.1965
EURO1 4.9202 4.3277 5.2964 4.4367
XOF1 0.0075 0.0100 0.00810 0.0067
3.2.4 Market risk measurement techniques
The Group applies the ‘value at risk’ methodology (VAR) to its trading and non-trading portfolios, to estimate
exposure to market risk of positions held and maximum losses expected, based on a number of assumptions
for various changes in market conditions. The Board sets limits on the value of risk that may be accepted for the
Group, trading and non-trading separately, which are monitored on a daily basis by Group Treasury.
VAR is a statistically based estimate of the potential loss on the current portfolio from adverse market movements.
It expresses the ‘maximum’ amount the Group might lose, but only to a certain level of confidence (98%).
There is therefore a specified statistical probability (2%) that actual loss could be greater than the VAR estimate.
The VAR model assumes a certain ‘holding period’ until positions can be closed (10 days). It also assumes that
market movements occurring over this holding period will follow a similar pattern to those that have occurred
over the preceeding10-day period in the past.
The Group’s assessment of past movements is based on data for the past five years. The Group applies these
historical changes in rates, prices, indices, etc. directly to its current positions − a method known as historical
simulation. Actual outcomes are monitored regularly to test the validity of assumptions and parameters/factors
used in the VAR calculation.
The use of this approach does not prevent losses outside of these limits in the event of more significant market
movements. The table below shows a summary statistics of VAR for the bank’s trading portfolio during 2017 and
2016.

Low Average High Low Average High
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Foreign exchange risk 10 23 36 87 295 637
Interest rate risk 258 337 408 56 63 89

3.2.5 Risk monitoring and control
The Risk Management department is responsible for reviewing exposure to market risk. The Treasury department
monitors interest rate and liquidity risks through daily, weekly, and monthly reviews of the structure and pricing
of assets and liabilities. Assets and Liability Committee (ALCO) meetings are also held monthly.
The Bank analyses the impact of unlikely, but not impossible events by means of scenario analysis, which
enables management gain a better understanding of risks that it could be exposed to in extreme conditions.
Both historical and hypothetical events are tested.
3.2.6 Risk reporting
Reports on the bank’s positions are reviewed daily by the Internal Audit and Compliance Unit. Reports include
foreign currency positions and liquidity positions in all currencies. Variations to expectations are reviewed and
corrected if need be.
3.3 Liquidity risk
Liquidity risk is the risk that the Bank will not be able to meet payment obligations associated with financial
liabilities when they fall due and replace funds when they are withdrawn. The consequence may be the failure
to meet obligations to repay depositors and fulfill commitments to lend. It is the policy of the Bank to maintain
adequate liquidity at all times and to be in a position to meet all obligations, repay depositors, fulfill commitments
to lend and meet any other commitments as and when they fall due.
The management of liquidity risk is governed by the Bank’s liquidity policy. Responsibility for the management
of liquidity risk lies with the Bank’s Assets and Liability Management Committee (ALCO), which is chaired by an
Executive Director. ALCO is responsible for both statutory and prudential liquidity as well as compliance with
regulatory requirements.
The primary objective of liquidity risk management is to provide a planning mechanism for unanticipated
changes in demand or needs for liquidity created by customer behavior or abnormal market conditions. ALCO
emphasizes the maximization and preservation of customer deposits and other funding sources. ALCO also
monitors deposit rates, levels, trends and significant changes.
Liquidity is managed on a short to medium-term basis. In the short term, the focus is on ensuring that cash flow
demands can be met as and when required. The focus, in the medium term, is on ensuring that the balance
sheet remains structurally sound and aligned to the bank’s strategy.
A substantial portion of the Bank’s assets are funded by customer deposits made up of current and savings
accounts and other deposits. These customer deposits, which are widely diversified by type and maturity,
represent a stable source of surplus funds. Lending is normally funded by liability in the same currency.
The Bank also maintains significant levels of marketable securities to meet compliance with prudential investment
of surplus funds. ALCO oversees structural foreign currency and interest rate exposures that arise within the

3.3 Liquidity risk (Cont’d)
Bank. These responsibilities are coordinated by ALCO during monthly meetings. The Bank places low reliance
on interbank funding and foreign markets.
The table below presents the cash flows payable under non-derivative financial liabilities and assets held for
managing liquidity risk by remaining contractual maturities at the reporting date. The amounts disclosed in the
table are the contractual undiscounted cash flows, whereas the Group manages the inherent liquidity risk based
on expected undiscounted cash inflows.
The Group
At 31 December 2017 Up to 1 1 - 3 3 - 12 Over
month months months 1 year TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Liabilities
Deposits from Banks 425,606 23,177 157,669 - 606,452
Customers deposits 6,136,658 51,562 322 353,106 6,541,648
Other liabilities 679,753 - - - 679,753
Borrowings - - 42,677 160,523 203,200
7,242,017 74,739 200,668 513,629 8,031,053
Assets
Cash and cash equivalents 2,309,530 641,150 2,073 - 2,952,753
Investments securities 34,035 36,322 173,207 2,274,978 2,518,542
Loans and advances to customers 518,824 217,141 352,478 1,597,025 2,685,468
Other assets 375,174 - - - 375,174
Assets held for managing liquidity risk 3,237,563 894,613 527,758 3,872,003 8,531,937
Liquidity gap (4,004,454) 819,874 327,090 3,358,374 500,884
At 31 December 2016
Liabilities
Customers deposits 5,108,860 228,823 75,382 3,851 5,416,916
Borrowings - - 535 232,209 232,744
6,411,935 292,865 145,133 236,060 7,085,993
Assets
Investment securities 296,917 31,500 34,122 278,471 641,010
Loans and advances to customers 1,595,539 96,665 229,061 1,559,279 3,480,544
Other assets 311,497 - - - 311,497
Liquidity gap (1,888,747) 486,997 340,320 1,601,690 540,260

3.3 Liquidity risk (Cont’d)
The Bank
At 31 December 2017 Up to 1 1 - 3 3 - 12 Over
month months months 1 year TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Liabilities
Customers Deposits 6,042,827 51,562 322 353,107 6,447,818
Other liabilities 675,821 - - 675,821
Borrowings - - 42,677 160,523 203,200
7,252,690 74,739 200,668 513,630 8,041,727
Assets
Investment securities 7,467 13,385 166,982 2,274,374 2,462,208
Loans and advances to customers 519,115 217,141 352,478 1,597,025 2,685,759
Other assets 391,320 - - - 391,320
Liquidity gap (4,016,856) 803,385 322,819 3,357,769 467,117
At 31 December 2016
Liabilities
Customers Deposits 5,008,569 228,823 75,382 3,851 5,316,625
Borrowings - - 535 232,209 232,744
6,392,434 292,865 145,133 236,060 7,066,492
Assets
Investment securities 267,005 6,111 27,939 27,930 578,985
Loans and advances to customers 1,595,466 96,665 229,061 1,559,279 3,480,471
Other assets 324,436 - - - 324,436
Liquidity gap (1,886,976) 461,043 334,050 1,601,149 509,266

3.4 Country analysis
The Group In Ghana Outside Ghana In Ghana Outside Ghana

2017 2017 2016 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Assets
Cash and bank balances 1,398,021 1,424,462 1,985,241 1,207,961
Investment securities 2,518,542 - 641,010 -
Loans and advances to customers 2,685,468 - 3,480,544 -
Total assets 6,602,031 1,424,462 6,106,795 1,207,961
Liabilities
Deposits from Banks 466,683 139,769 541,979 877
Deposits due to customers 6,541,648 - 5,416,916 -
Borrowings 4,661 198,539 4,725 228,019
Total liabilities 7,012,992 338,308 5,963,620 228,896
The Bank In Ghana Outside Ghana In Ghana Outside Ghana

2017 2017 2016 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Assets
Cash and bank balances 1,414,825 1,424,462 2,139,266 1,052,600
Investment securities 2,462,208 - 578,985 -
Loans and advances to customers 2,685,759 - 3,480,471 -
Total assets 6,562,792 1,424,462 6,198,722 1,052,600
Liabilities
Deposits from Banks 575,119 139,769 629,411 877
Deposits due to customers 6,447,818 - 5,316,625 -
Borrowings 4,661 198,539 4,725 228,019
Total liabilities 7,027,598 338,308 5,950,761 228,896

3.5 Fair value of financial assets and liabilities
The fair values of financial assets and financial liabilities that are traded in active markets are based on quoted
market prices or dealer price quotations. For all other financial instruments, the Group determines fair values
using other valuation techniques.
For financial instruments that trade infrequently and have little price transparency, fair value is less objective,
and requires varying degrees of judgment depending on liquidity, concentration, uncertainty of market factors,
pricing assumptions and other risks affecting the specific instrument.
(a) Valuation models
The Group measures fair values using the following fair value hierarchy, which reflects the significance of inputs
used in making the measurements.
• Level 1: inputs that are quoted market prices (unadjusted) in active markets for identical instruments.
• Level 2: inputs other than quoted prices included within Level 1 that are observable either directly (i.e.
as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted
market prices in active markets for similar instruments; quoted prices for identical or similar instruments
in markets that are considered less than active; or other valuation techniques in which all significant inputs
are directly or indirectly observable from market data.
• Level 3: inputs that are unobservable. This category includes all instruments for which the valuation
technique includes inputs not based on observable data and the unobservable inputs have a significant
effect on the instrument’s valuation. This category includes instruments that are valued based on quoted
prices for similar instruments for which significant unobservable adjustments or assumptions are required
to reflect differences between the instruments.
Valuation techniques include net present value and discounted cash flow models, comparison with similar
instruments for which market observable prices exist and other valuation models. Assumptions and inputs
used in valuation techniques include risk free and benchmark interest rates, credit spreads and other premiums
used in estimating discount rates and foreign currency exchange rates and expected price volatilities and
correlations.
The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would
be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants
at the measurement date.
The Group uses widely recognised valuation models for determining the fair value of common and more simple
financial instruments that use only observable market data and require little management judgment and
estimation.
Availability of observable market prices and model inputs reduces the need for management judgement and

(a) Valuation models (Cont’d)
estimation and also reduces the uncertainty associated with determining fair values. Availability of observable
market prices and inputs varies depending on the products and markets and is prone to changes based on
specific events and general conditions in the financial markets.
(b) Financial instruments measured at fair value – fair value hierarchy
The following table analyses financial and non-financial assets measured at fair value at the reporting date,
by the level in the fair value hierarchy into which the fair value measurement is categorised. The amounts are
based on the values recognised in the statement of financial position.
(i) Land and Buildings
An external, independent valuation Company, having appropriate recognised professional qualifications and
recent experience in the location and category of property being valued, values the Group’s property. The fair
values are based on market values, being the estimated amount for which a property could be exchanged on
the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper
marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
Level 1 Level 2 Level 3

GH¢’000 GH¢’000 GH¢’000
The Bank
2017
Land and Building - - 149,759
The Bank
2016
Land and Building - - 87,406

(c) Financial instruments not measured at fair value
The following table sets out the fair values of financial instruments not measured at fair value in the statement
of financial position, analysed by reference to levels in the fair value hierarchy into which each fair value
measurement is categorised:
The Group Total

At 31 December 2017 Total fair carrying
Level 1 Level 2 Level 3 value amount
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Non-derivative financial assets

Investment securities - 2,228,036 - 2,228,036 2,518,542
Loans and advances to customers - - 2,327,589 2,327,589 2,685,468
Cash and cash equivalents - 1,431,661 1,520,396 2,952,057 2,952,753
Other assets - - 375,174 375,174 375,174
- 3,659,697 4,223,159 7,882,856 8,531,937
Non-derivative financial liabilities

Deposits from Banks - 600,448 - 600,448 606,452
Deposits from customers - 6,229,956 - 6,229,956 6,541,648
Borrowings - - 199,480 199,480 203,221
Other liabilities - - 679,732 679,732 679,732
- 6,830,404 879,212 7,709,616 8,031,053
At 31 December 2016

Investment securities - 629,870 - 629,870 641,010
Other assets - - 311,497 311,497 311,497
- 1,660,009 5,800,164 7,460,173 7,626,253

Borrowings - - 230,548 230,548 232,744
- 5,893,132 1,124,025 7,017,157 7,085,993

The Bank Total

At 31 December 2017 Total fair carrying
Level 1 Level 2 Level 3 value amount
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Investment securities - 2,171,745 - 2,171,745 2,462,208
Other assets - - 391,320 391,320 391,320
- 3,603,406 4,256,041 7,859,447 8,508,844

Borrowings - - 199,480 199,480 203,200
- 6,848,589 875,301 7,723,890 8,041,727
At 31 December 2016

Investment securities - 568,718 - 568,718 578,985
Other assets - - 324,436 324,436 324,436
- 1,598,857 5,811,709 7,410,566 7,575,758

Borrowings - - 230,548 230,548 232,744
- 5,880,675 1,117,383 6,998,058 7,066,492
The fair value of government securities is based on market prices or broker/dealer price quotations. Where
this information is not available, fair value is determined using quoted market prices for securities with similar
credit, maturity and yield characteristics.

(c) Financial instruments not measured at fair value (Cont’d)
Where applicable, the fair value of loans and advances to customers is based on observable market transactions.
Where observable market transactions are not available, fair value is estimated using valuation models such
as discounted cash flow techniques which represents the discounted amount of estimated future cash flows
expected to be received. Expected cash flows are discounted at current market rates to determine the fair
value. For collateral-dependent impaired loans, the fair value is measured based on the value of the underlying
collateral.
The fair value of advances to and from Banks is based on discounted cash flow techniques applying the rates of
similar maturities and terms.
The fair value of term deposits by customers is estimated using discounted cash flow techniques, applying the
rates that are offered for deposits of similar maturities and terms. The fair value of deposits payable on demand
is the amount payable at the reporting date.
Fair values of borrowings are estimated using discounted cash flow techniques, applying rates that are offered
for borrowings of similar maturities and terms.
No fair value disclosures are provided for investments in other equity securities that are measured at cost less
any impairment losses because their fair values cannot be measured reliably. These investments are unquoted
equity investments with no observable market data. There is no active market for these investments and the
Group does not intend to dispose off these investments in the foreseeable future.

3.6 Classification of financial assets and financial liabilities
The Group classifies financial instruments into classes that reflect the nature and characteristics of those
financial instruments. The table below provides reconciliation between the items in the statement of financial
position and the categories of financial instrument.
The Group Other Total

At 31 December 2017 Held-to Loans & Available- financial carrying
Maturity receivables for-sal liabilities amount
Note GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Cash and cash equivalents 23 - 1,327,017 - - 1,327,017

Investment securities 25 - 2,516,394 - - 2,516,39
Advances to banks 23 - 1,625,736 - - 1,625,736

Loans and advances to customers 24 - 2,685,468 - - 2,685,468
Investments (other than securities) 25 - - 2,148 - 2,148
Other assets 27 - 375,174 - - 375,174
Total assets - 8,529,789 2,148 - 8,531,937
Deposits from banks 31 - - - 606,452 606,452

Deposits from customers 32 - - - 6,541,648 6,541,648
Other liabilities 34 - - - 679,732 679,732
Borrowings 33 - - - 203,200 203,200
Total liabilities - - - 8,031,032 8,031,032
At 31 December 2016
Cash and cash equivalents 23 - 922,632 - - 922,632

Investment securities 25 - 638,862 - - 638,862
Other assets 27 - 311,497 - - 311,497
Total assets - 7,624,105 2,148 - 7,626,253

Borrowings 23 - - - 232,744 232,744

3.6 Classification of financial assets and financial liabilities (Cont’d)
The Bank Other Total

At 31 December 2017 Held-to Loans & Available- financial carrying
Maturity receivables for-sal liabilities amount
Note GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Cash and cash equivalents 23 - 1,327,017 - - 1,327,017

Investment securities 25 - 2,460,060 - - 2,460,060

Other assets 27 - 391,320 - - 391,320
Total assets - 8,506,696 2,148 - 8,508,844

Borrowings 33 - - - 203,200 203,200
At 31 December 2016
Cash and cash equivalents 23 - 922,632 - - 922,632

Investment securities 25 - 576,837 - - 576,837
Investments (other than securities) 25 - 2,148 - 2,148
Other assets 27 - 324,436 - - 324,436
Total assets - 7,573,610 2,148 - 7,575,758

Borrowings 23 - - - 232,744 232,744

4. CAPITAL MANAGEMENT
The risk-weighted assets are measured by means of
The Group’s objectives when managing capital a hierarchy of five risk weights classified according
include: to the nature and reflecting an estimate of credit,
market and other risks associated with each asset
• Complying with capital requirements set by the and counterparty. A similar treatment is adopted for
Bank of Ghana off-balance sheet exposures, with some adjustments
• Safeguarding the Group’s ability to continue as to reflect the more contingent nature of potential
a going concern to enable it continue providing losses.
returns for shareholders and benefits for other
stakeholders The table below summarises the composition of
• Maintaining a strong capital base to support the regulatory capital adequacy ratios of the Group and
development of its business bank for the years ended 31 December 2017 and
2016. During these two years, the individual entities
Capital adequacy and the use of regulatory capital within the Group and the Group itself complied with
are monitored daily by management, employing all externally imposed capital requirements that they
techniques based on guidelines developed by the are subject to.
Basel Committee as implemented by Bank of Ghana
for supervisory purposes. The required information
is filed with Bank of Ghana on a monthly basis. Bank
of Ghana requires each bank to:
• hold a minimum regulatory capital of GH¢60

million; and
• maintain a ratio of total regulatory capital to risk-
weighted assets plus risk weighted off balance
sheet assets above a required minimum of 10%.
The Bank’s regulatory capital is divided into two tiers:
Tier 1 capital: includes shareholders’ equity

and disclosed reserves after deducting specified
assets such as intangibles and certain classes of
investments.
Tier 2 capital: includes qualifying subordinated

loan capital, collective impairment allowances and
unrealised gains arising on the fair valuation of equity
instruments held as available for sale.

The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Tier 1 Capital
Share capital 226,641 226,641 226,641 226,641
Statutory reserves 355,064 323,124 354,546 322,623
Income surplus 208,393 271,445 198,782 260,078
Intangibles/other assets (120,072) (83,003) (181,073) (102,549)
Total qualifying tier 1 capital 670,026 738,207 598,897 706,793
Tier 2 Capital
Subordinated debt 95,595 111,706 95,595 111,706
Other reserves 54,891 50,129 54,891 50,129
Total qualifying tier 2 capital 150,486 161,835 150,486 161,835
Total regulatory capital 820,511 900,042 749,382 868,628
Risk weighted assets

On balance sheet 4,594,187 5,275,538 4,592,737 5,282,118
Off balance sheet 1,368,657 611,255 1,368,657 611,255
Total risk weighted assets 5,962,844 5,886,793 5,961,394 5,893,373
Capital adequacy ratio 13.76% 15.29% 12.57% 14.74%
The group complied with all external capital requirements.

NEW MINIMUM CAPITAL REQUIREMENT FOR BANKS
In September 2017, the Bank of Ghana announced a new minimum capital requirement, as part of a holistic
financial sector reform plan to further develop, strengthen, and modernize the financial sector to support the
government’s economic vision and transformational agenda.
In line with the above, and in accordance with Section 28 (1) of the Banks and Specialised Deposit-Taking
Institutions Act, 2016 (Act 930), the Bank of Ghana (BOG) increased the minimum capital requirement for
commercial Banks from GH¢120 million to GH¢400 million.
The Directive required all Banks to comply with the new capital requirement by 31 December 2018.
Banks are required to meet the new capital requirements using either of the following methods:
• Fresh capital injection;

• Capitalisation of income surplus; and
• A combination of fresh capital injection and capitalisation of income surplus
Ecobank Ghana Limited intends to meet the new capital requirement by transferring amounts from income
surplus account to stated capital to ensure compliance with the new requirement by December 2018.
REGULATORY MATTERS (BASEL IMPLEMENTATION)
Bank of Ghana (BoG), in its bid to ensure the stability of the Ghanaian Banking Sector and keep pace with global
development and growth in risk management practices rolled out, in October 2017, a Capital Requirement
Directive (CRD) which require banks to implement Pillar 1 principles of Basel II. BoG requires banks to commence
the implementation of the directive from 1 January 2018 with an effective compliance date of 1 July 2018.
The Capital Requirement Directive has four main parts. The first part provides principles for capital management
and the constituents of eligible regulatory capital. The second, third and fourth parts provide guidance on the
role of the board in the management of credit, operational and market risk respectively. Guidelines for the
computation of credit risk weighted asset, operational and market risk capital charges are also detailed in the
CRD document.
It is expected that the implementation of Basel principles will have a significant impact on the overall risk culture
of banks and will ultimately enhance the risk and capital management of banks.

5. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
The Group’s financial statements and financial results are influenced by accounting policies, assumptions,
estimates and management judgment, which necessarily have to be made in the course of preparing the
financial statements.
The Group makes estimates and assumptions that affect reported amounts of assets and liabilities. All estimates
and assumptions required in conformity with IFRS are based on best estimates undertaken in accordance with
applicable standards. Estimates and judgments are evaluated on a continuous basis, based on past experience
and other factors, including expectations with regard to future events.
(a) Impairment losses on loans and advances
The Group reviews its loan portfolio to assess impairment at least on a quarterly basis. In determining whether
an impairment loss should be recorded in profit or loss, the Group considers observable data that may indicate
measurable decreases in estimated future cash flows from a portfolio of loans before decreases can be identified
with individual loans in that portfolio. This evidence may include observable data indicating adverse changes
in the payment status of borrowers in a group, or economic conditions that correlate with defaults on assets
in a group. Management uses estimates based on historical loss experience for assets with similar credit risk
characteristics and objective evidence.
(b) Fair value of financial instruments
The fair value of financial instruments where no active market exists or where quoted prices are not otherwise
available are determined using valuation techniques. In these cases, fair values are estimated from observable
data in respect of similar financial instruments or using models. Models are calibrated to ensure that outputs
reflect actual data and comparative market prices.
(c) Income taxes
Significant estimates are required in determining provisions for income taxes. There are many transactions and
calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The
Group recognises liabilities for anticipated tax liabilities based on estimates of whether additional taxes will be
due. Where the final tax outcome of these matters is different from the amounts that were initially recorded,
such differences are adjusted in the period in which such determination is made.
6. INTEREST INCOME
The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Financial assets measured at amortised cost

Placement and short-term funds 131,942 144,435 131,931 144,340
Treasury bills and Government securities 205,891 156,509 193,285 136,329
Loans and advances 566,744 604,360 560,267 598,245
904,577 905,304 885,483 878,914

7. INTEREST EXPENSE
The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Financial liabilities measured at amortised cost

Demand deposits 56,791 84,182 79,921 101,910
Time deposits 57,969 54,700 31,982 28,158
Borrowed funds 14,555 22,804 14,555 22,856
Savings 30,993 24,513 30,993 24,513
160,308 186,199 157,451 177,437
8. FEES AND COMMISSION INCOME
Trade finance fees 52,543 27,636 52,543 27,636

Credit related fees and commission 38,727 35,154 38,479 35,156
Cash management 66,151 50,724 66,151 50,724
Other fees and commission 44,855 46,975 44,897 46,987
202,276 160,489 202,070 160,503
9. FEE AND COMMISSION EXPENSE
Charges for services 3,521 3,267 3,471 3,233
10. NET TRADING INCOME
Foreign exchange:
• translation gains less losses 14,763 13,559 14,678 13,403
• transaction gains less losses 119,301 103,381 119,301 103,381
Interest rate instruments 9,942 13,334 9,710 13,150
144,006 130,274 143,689 129,934
11. OTHER OPERATING INCOME
Other revenue 15,215 11,591 14,900 11,221

Finance lease 10,680 6,471 10,680 6,470
25,895 18,062 25,580 17,691

12.
OTHER REVENUE The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Dividend income 3,921 4,140 19,931 16,942
13. GAINS FROM DERECOGNITION OF FINANCIAL ASSETS

MEASURED AT AMORTISED COST
Gains from derecognition of financial assets - 177,854 - 177,854
In 2016 two (2) of Ecobank Ghana Limited’s key facilities were restructured. The new terms under the restructured
facilities resulted in a significant modification of the existing facilities leading to the derecognition of the initial
facilities and subsequent recognition of new facilities. The difference between the carrying amount of the initial
facilities and the fair value of the restructured amount is recognised as gains or loss from derecognition of
financial assets measured at amortised cost.
14.
OTHER INCOME The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Profit on sale of equipment 267 291 267 291
15. NET IMPAIRMENT LOSS ON FINANCIAL ASSET

The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Impairment charge
Loan impairment:
Individual 193,541 174,870 193,541 174,870
Collective 8,902 29,072 8,901 29,045
Recoveries (28,503) (25,345) (28,503) (25,345)
Charge to income statement 173,940 178,597 173,939 178,570
Impairment allowance
At 1 January 86,565 159,670 86,260 159,392
Increase in impairment 173,940 178,597 173,939 178,570
Released on loan derecognised (90,211) (90,211)
Amounts written off during the year as uncollectible (44,670) (161,491) (44,670) (161,491)
At 31 December 215,835 86,565 215,529 86,260

16.
PERSONNEL EXPENSES The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Personnel expenses comprise:

Wages and salaries 183,273 184,345 182,962 184,095
Social security fund contribution 16,804 16,041 16,768 16,017
Other allowances 143,595 115,973 143,378 115,881
343,672 316,359 343,108 315,993
17. DEPRECIATION & AMORTIZATION
Depreciation of property and equipment 22,640 17,115 22,640 17,114

Amortisation of software 3,656 4,419 3,656 4,419
26,296 21,534 26,296 21,533
18. OTHER EXPENSES
Rent 15,674 16,439 15,584 16,363

Travel 6,235 7,675 6,235 7,675
Technology and communication 76,520 72,877 76,517 72,877
Business promotion 9,275 13,051 9,275 13,051
Advertising 3,733 3,650 3,733 3,650
Training 3,065 5,726 3,065 5,726
Audit fees 786 718 635 581
Directors’ fees 1,554 1,000 1,550 1,000
Repairs and maintenance 11,756 9,756 11,744 9,756
Utilities 16,260 14,717 16,235 14,675
Loss on sale-non current asset held for sale 1,571 - 1,571 -
Corporate social responsibility (Note 48) 1,716 3,387 1,716 3,387
Other administrative expenses 67,151 79,472 67,135 79,436
215,296 228,468 214,995 228,177
The other administrative expenses include stationery and supplies, insurance, office security, printing, fuel, cash
in transit overheads and legal fees.
The number of persons employed by the Group at the year-end was 1,583 (2016:1,617).

19.
INCOME TAX The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Income tax expense

Current tax 83,796 113,738 81,815 111,064
National fiscal stabilisation Levy (Note 19) 17,467 22,737 17,088 22,219
Deferred tax (Note 17) 3,475 (1,695) 3,473 (1,691)
104,738 134,780 102,376 131,592
The tax on the Group and the Bank’s profit before tax differs from the theoretical amount that would arise using
the basic tax rate as follows:
Profit before tax 358,383 462,676 357,760 457,186
Corporate tax rate at 25% (2016: 25%)
Tax using the bank’s domestic tax rate 89,596 115,669 89,440 114,296
Tax incentives (67) (17) (67) (17)
Non-deductible 4,849 (521) 965 (529)
Tax exempt income (7,107) (3,088) (5,050) (4,377)
National fiscal stabilisation levy 17,467 22,737 17,088 22,219
Income tax expense 104,738 134,780 102,376 131,592
Effective tax rates 29% 29% 29% 29%
The movement on corporate tax payable was as follows:
Balance at Charge for Balance at

The Group 1 January the year Payment 31 December
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Year of assessment
Up to 2009 1,016 - - 1,016
2010-2012 4 - - 4
2013-2014 40 - - 40
2015 (15,321) - - (15,321)
2016 10,876 - (10,979) (103)
2017 - 83,796 (93,646) (9,850)
(3,385) 83,796 (104,625) (24,214)

National fiscal stabilization levy (2,618) 17,467 (19,327) (4,478)
(6,003) 101,263 (123,952) (28,692)

Balance at Charge for Balance at

The Bank 1 January the year Payment 31 December
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Year of assessment
Up to 2009 1,016 - - 1,016
2013-2014 325 - - 325
2015 (15,303) - - (15,303)
2016 10,979 - (10,979) -
2017 - 81,815 (90,842) (9,027)
(2,983) 81,815 (101,821) (22,989)

National fiscal stabilization levy (2,610) 17,088 (18,782) (4,304)
(5,593) 98,903 (120,603) (27,293)

20. DEFERRED TAX
The Group The Bank
2017 Movement Movement
Balance during the Balance Balance during the Balance
at 1/1 year at 31/12 at 1/1 year at 31/12
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Gross value
Recognized in OCI
Revaluation of property 16,710 19,884 36,594 16,710 19,884 36,594
At 31 December 2017 16,710 19,884 36,594 16,710 19,884 36,594
Gross value
Recognized in profit & loss
Provision for loan impairment (10,705) (2,226) (12,931) (10,705) (2,226) (12,931)
Accelerated tax depreciation 796 5,701 6,497 805 5,699 6,504
At 31 December 2017 (9,909) 3,475 (6,434) (9,900) 3,473 (6,427)
Net deferred tax (asset)/liability 6,801 23,359 30,160 6,810 23,357 30,167
2016
Gross value
Recognized in OCI
Revaluation of property 7,783 8,927 16,710 7,783 8,927 16,710
Available for sale securities (555) 555 - (275) 275 -
At 31 December 2016 7,228 9,482 16,710 7,508 9,202 16,710
Gross value
Recognized in profit & loss
Other provisions 1,310 (1,310) - 1,310 (1,310) -
Provision for loan impairment (3,444) (7,261) (10,705) (3,444) (7,261) (10,705)
Accelerated tax depreciation (6,080) 6,876 796 (6,075) 6,880 805
At 31 December 2016 (8,214) (1,695) (9,909) (8,209) (1,691) (9,900)
Net deferred tax (asset)/liability (986) 7,787 6,801 (701) 7,511 6,810
The movement on corporate tax payable was as follows:

The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Profit or loss expense 3,475 (1,695) 3,473 (1,691)
Other comprehensive income 19,884 9,482 19,884 9,202

21. NATIONAL FISCAL STABILISATION LEVY
The National Fiscal Stabilization Levy Act, 2013 (862) was introduced in 2013 and is effective prospectively from
July 2013 with an eighteen (18) months tenure. On 31 December 2014, Act (862) was amended by Act (882) to
extend the date of expiration of the national fiscal stabilization levy and to provide for related matters. Under
the amendment Act, the levy is payable in respect of profit before tax for the 2013, 2014, 2015, 2016 and 2017
years of assessment.
Under the Act, an additional 5% levy, which is payable quarterly, is charged on profit before tax of selected
entities, including Banks.
22. EARNINGS PER SHARE
Basic and diluted earnings per share is calculated by dividing the net profit attributable to equity holders of the
Bank by the weighted average number of ordinary shares in issue during the year.
The Group The Bank

2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Profit attributable to equity holders of the Bank 253,645 327,896 255,384 325,594
Weighted average number of ordinary shares 293,228 293,228 293,228 293,228
Basic earnings per share

(expressed in Ghana pesewas per share) 87 112 87 111
Diluted earnings per share
(expressed in Ghana pesewas per share) 87 112 87 111
There is no potential dilution on basic earnings per share.
23. CASH AND BANK BALANCES

The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Cash on hand 230,063 194,323 230,063 194,323

Balance with Bank of Ghana 1,096,954 728,309 1,096,954 728,309
Loan and advances to banks 1,625,736 2,270,570 1,642,540 2,269,234
2,952,753 3,193,202 2,969,557 3,191,866
Included in balance with Bank of Ghana is cash reserves maintained as part of the cash reserve requirements
(10%) of the Central Bank amounting to GHS 644,781,800 (2016:531,662,500). Cash on hand and balances with
Bank of Ghana are non-interest-bearing and will be recovered no more than 12 months after the reporting
period.

24. LOANS AND ADVANCES TO CUSTOMERS
The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Overdrafts 567,610 905,797 567,610 905,797

Staff loans 116,172 91,365 116,172 91,365
Finance leases 118,138 159,075 118,138 159,075
Mortgage loans 37,482 37,424 37,482 37,424
Term loans 2,061,901 2,373,448 2,061,886 2,373,070
Gross loans and advances to customers 2,901,303 3,567,109 2,901,288 3,566,731

Allowances for impairment (Note 15) (215,835) (86,565) (215,529) (86,260)
Net loans and advances to customers 2,685,468 3,480,544 2,685,759 3,480,471
Analysis of allowance for impairment

Loan impairment 215,835 86,565 215,529 86,260
Analysis of impairment allowance

Specific impairment 163,807 43,439 163,807 43,439
Collective impairment 52,028 43,126 51,722 42,821
215,835 86,565 215,529 86,260
Specific allowance for impairment

Balance at 1 January 43,439 145,616 43,439 145,616
Charge for the year 193,541 174,870 193,541 174,870
Amounts written off as uncollectible (44,670) (161,491) (44,670) (161,491)
Released on loan derecognized - (90,211) - (90,211)
Recoveries (28,503) (25,345) (28,503) (25,345)
Balance at 31 December 163,807 43,439 163,807 43,439
Collective allowance for impairment

Balance at 1 January 43,126 14,054 42,821 13,776
Charge/(release) for the year 8,902 29,072 8,901 29,045
Balance at 31 December 52,028 43,126 51,722 42,821
Total allowance for impairment 215,835 86,565 215,529 86,260
Analysis by industry on gross loans

Construction 76,657 86,301 76,657 86,301
Agriculture, forestry and fishing 7,103 6,133 7,103 6,133
Mining and quarrying 90,596 88,820 90,596 88,820
Manufacturing 286,659 320,628 286,659 320,628
Electricity, gas and water 109,109 92,459 109,109 92,459
Commerce and finance 809,696 1,196,322 809,696 1,218,228
Transport, storage and communication 319,019 247,407 319,019 247,407
Services 1,202,464 1,617,039 1,202,449 1,594,395
2,901,303 3,567,109 2,901,288 3,566,371

The fifty largest exposures by customers constituted 67.42% of the gross loans at the year-end (2016: 72.18%).
The total amount of allowance for impairment represent 7.44% of the gross loans at the year-end (2016:2.42%).
The maximum amount due from staff during the year amounted to GH¢116 million (2016: GH¢91.3 million).
The investment in finance lease is analysed as follows:
The Group The Bank

2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Less than 1 year 2,191 1,463 2,191 1,463

Between 1 year and 5 years 115,893 157,612 115,893 157,612
Gross investment in finance leases 118,084 159,075 118,084 159,075
Unearned finance income on finance leases - (76) - (76)
Net investment in finance leases 118,084 158,999 118,084 158,999
The net investment in finance lease is analysed as follows:
Less than 1 year 2,191 1,462 2,191 1,462

Between 1 year and 5 years 115,893 157,537 115,893 157,537
118,084 158,999 118,084 158,999
25. INVESTMENT SECURITIES
Government securities (a) 2,516,394 638,862 2,460,060 576,837

Investment securities available for sale (b) 2,148 2,148 2,148 2,148
At 31 December 2,518,542 641,010 2,462,208 578,985

(a) Government Securities
The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 1 January 638,862 726,726 576,837 592,107

Additions 2,460,533 4,077,328 2,200,145 3,786,443
Redeemed on maturity (583,001) (4,167,413) (316,922) (3,802,813)
Gains from changes in fair value (Note 36) - 2,221 - 1,100
At 31 December 2,516,394 638,862 2,460,060 576,837
Maturing within 90 days of acquisition 67,658 326,491 18,584 270,968

Maturing after 90 days but within 182 days 68,639 24,356 56,990 21,852
Maturing after 182 days of acquisition 110,099 9,124 109,066 5,667
Maturing after 1 year of acquisition 2,269,998 278,891 2,275,420 278,350
2,516,393 638,862 2,460,060 576,837
Government securities are treasury bills and bonds issued by the Government of Ghana. These are categorised
as loans and receivables carried at amortised cost.
(b) Investment securities available for sale
At 1 January 2,148 2,148 2,148 2,148

Additions - - - -
Impairment on investment securities - - - -
At 31 December 2,148 2,148 2,148 2,148
Non-current 2,148 2,148 2,148 2,148
26. INVESTMENT IN SUBSIDIARIES

2017 2016
Bank Bank
Ordinary shares % GH¢’000 GH¢’000
Ecobank Investment Managers Limited 100 11,350 11,350

Ecobank Leasing Company Limited 100 1,000 1,000
Ecobank Venture Capital Fund 1 Company Limited 100 16,420 10,427
Ecobank Capital Advisors Limited 100 1 1
28,771 22,778
All these subsidiaries are incorporated and domiciled in Ghana.
(a) Significant restrictions
The Group does not have significant restrictions on its ability to access or use its assets and settle its liabilities.

27.

OTHER ASSETS The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Fees receivable 40,088 37,325 56,065 50,093

Prepayments 34,289 30,765 34,271 30,765
Due from affiliates 24,763 56,369 24,763 56,369
Sundry receivables 310,323 217,803 310,492 217,973
409,463 342,262 425,591 355,200
Current 409,463 342,262 425,591 355,200
28. INTANGIBLE ASSETS
Cost
At 1 January 32,421 31,465 32,421 31,465
Additions 2,449 956 2,449 956
At 31 December 34,870 32,421 34,870 32,421
Accumulated amortisation
At 1 January 27,032 22,613 27,032 22,613
Charge for the year 3,656 4,419 3,656 4,419
At 31 December 30,688 27,032 30,688 27,032
Net book value 4,182 5,389 4,182 5,389
Intangible assets represent acquired licenses for computer software. Amortisation expense on intangible assets
is included in other expenses in the statement of comprehensive income.

29. NON-CURRENT ASSET HELD FOR SALE
(a) In 2016, management committed to a plan to sell off landed properties taken over from its borrowers as
part settlement of their outstanding loan balances with the Bank. Accordingly, two of the landed properties
were sold in 2017. The total value of the remaining landed properties is presented as non-current asset
held for sale. The Bank is actively marketing the sale of the non-current assets and a sale is expected by
June 2018.
(b) Assets and liabilities of non-current asset held for sale
At 31 December 2017, the non-current asset held for sale was stated at carrying amount and comprised of:
The Group The Bank

2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 1 January 63,726 - 63,726 -

Additions - 63,726 - 63,726
Disposals (29,239) - (29,239) -
At 31 December 34,487 63,726 34,487 63,726
(c) Disposal of Held for Sale Assets
Carrying Amount 29,239 - 29,239 -

Sales Proceeds 27,668 - 27,668 -
Loss on disposal (1,571) - (1,571) -
Of the total proceeds of GH¢ 27,668,000, cash received amounts to GH¢ 16,418,000 (as seen in cash flow
statement). The remainder of GH¢ 11,250,000 would be received in 2018.
(d) Cumulative income or expense included in OCI
There is no cumulative income or expenses included in OCI relating to the non-current asset held for sale.

30. PROPERTY AND EQUIPMENT
(a) Movement for the year

Capital
Land & Furniture & Motor work in
The Group Buildings equipment Computers vehicles progress TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Gross value
At 1 January 2017 91,145 66,286 45,915 22,356 190,307 416,009
Additions 171 2,872 17,493 1,929 60,392 82,857
Transfers 238,508 8,084 2 - (246,594) -

Disposals - - - (2,362) - (2,362)
Released on revaluation (5,666) - - - - (5,666)
Revaluation surplus 79,537 - - - - 79,537
At 31 December 2017 403,695 77,242 63,410 21,923 4,105 570,375
Depreciation
At 1 January 2017 3,739 46,907 37,016 11,686 - 99,348
Charge for the year 3,876 7,574 6,961 4,229 - 22,640
Disposals - - - (1,953) - (1,953)
Released on revaluation (5,666) - - - - (5,666)
At 31 December 2017 1,949 54,481 43,977 13,962 - 114,369
Net book value

At 31 December 2017 401,746 22,761 19,433 7,961 4,105 456,006
2016
Gross value
At 1 January 2016 93,296 59,109 40,701 16,603 128,234 337,943
Additions - 7,167 5,214 8,630 62,073 83,094
Disposals (2,151) - - (2,877) - (5,028)
At 31 December 2016 91,145 66,286 45,915 22,356 190,307 416,009
Depreciation
At 1 January 2016 1,845 39,999 32,373 10,893 - 85,110
Disposals - - - (2,877) - (2,877)
At 31 December 2016 3,739 46,907 37,016 11,686 - 99,348
Net book value

At 31 December 2016 87,406 19,379 8,899 10,670 190,307 316,661

Capital
Land & Furniture & Motor work in
The Bank Buildings equipment Computers vehicles progress TOTAL
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
Gross value
At 1 January 2017 91,145 66,095 44,440 22,357 190,207 414,244
Additions 171 2,868 17,493 1,929 60,393 82,854
Transfers 238,508 8,084 2 - (246,594) -
Disposals - - - (2,362) - (2,362)
Release on Revaluation (5,666) - - - - (5,666)
Revaluation Surplus 79,537 - - - - 79,537
At 31 December 2017 403,695 77,047 61,935 21,924 4,006 568,607
Depreciation
At 1 January 2017 3,739 46,033 36,126 11,685 - 97,583
Disposals - - - (1,953) - (1,953)
Release on Revaluation (5,666) - - - - (5,666)
At 31 December 2017 1,949 53,606 43,088 13,961 - 112,604
Net book value

At 31 December 2017 401,746 23,441 18,847 7,963 4,006 456,003
2016
Gross value
At 1 January 2016 93,296 58,918 39,226 16,604 128,134 336,178
Additions - 7,177 5,214 8,630 62,073 83,094
Disposals (2,151) - - (2,877) - (5,028)
At 31 December 2016 91,145 66,095 44,440 22,357 190,207 414,244
Depreciation
At 1 January 2016 1,845 39,125 31,483 10,893 - 83,346
Disposals - - - (2,877) - (2,877)
At 31 December 2016 3,739 46,033 36,126 11,685 - 97,583
Net book value

At 31 December 2016 87,406 20,062 8,314 10,672 190,207 316,661
Contractual commitments for the acquisition of property and equipment not provided for in the financial
statements as at 31 December 2017 was Nil (2016: GH¢20,325,613). The commitments are approved cost in
respect of new head office projects.

Revaluation of property
The Bank’s buildings were revalued on the basis of their open market values by Valuation and Investments
Associates (Fixed Assets Valuation, Project & Management Consultants) in March 2017. These figures were
incorporated in the financial statements for the year ended 31 December 2017.
(b) Depreciation of property and equipment
Depreciation has been charged in the financial statements as follows:
The Group The Bank

2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Operating expenses 22,640 17,115 22,640 17,114
(c) Cost component of revalued property
An analysis of the cost component of the revalued land and building was as follows:
Cost 75,888 51,285 75,888 51,285

Accumulated depreciation (5,666) (4,690) (5,666) (4,690)
Net book value 70,222 46,595 70,222 46,595
(d) Disposal of property and equipment
Gross value 2,362 5,028 2,362 5,028

Accumulated depreciation 1,953 2,877 1,953 2,877
Net book value 409 2,151 409 2,151

Sales proceeds 676 2,442 676 2,442
Gain on disposal of property and equipment 267 291 267 291
(e) Analysis of PPE gross (Property and equipment)
Cost 70,222 51,285 70,222 51,285

Revaluation surplus 79,537 42,011 79,537 42,011
149,759 93,296 149,759 93,296

31. DEPOSITS FROM BANKS
The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Other deposits from Banks 606,452 542,856 714,888 630,288
Current 606,452 542,856 714,888 630,288
32. CUSTOMER DEPOSITS
Current accounts 4,799,063 4,064,888 4,824,817 4,085,111

Cash collateral 393,102 190,528 393,102 190,528
Savings account 879,534 724,425 879,534 724,425
Time deposit 350,401 321,311 350,365 316,561
Private placements 119,548 115,764 - -
6,541,648 5,416,916 6,447,818 5,316,625
Current 6,188,613 5,095,605 6,125,427 5,000,064

Non-current 353,035 321,311 322,391 316,561
6,541,648 5,416,916 6,447,818 5,316,625
The twenty largest depositors constituted 19.56% of the total deposits at the year-end (2016: 20.32%).
33. BORROWINGS
At Exchange At
1/1/17 Drawdown Interest Repayment differences 31/12/17
GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000
International Finance Corporation 84,657 - 516 (653) 4,310 88,830

Export Development
Investment Fund 4,725 - 1 (2,642) - 2,084
European Investment Bank 72,621 - 572 (2,476) 3,677 74,394
Ecobank Transnational Bank (IFC) 46,923 - 931 (24,229) 1,663 25,288
Ecobank Transnational Bank (EIB) 23,818 - 578 (12,691) 919 12,604
African Development Bank - - - - - -
232,744 - 2,598 (42,691) 10,569 203,200

The Group The Bank

2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Current 42,677 4,189 42,677 4,189

Non-current 160,523 228,555 160,523 228,555
203,200 232,744 203,200 232,744
A loan of US$20 million was made available to the Bank by International Finance Corporation (IFC) under an
agreement dated 20 July 2007. This loan is to be used as tier II capital, and attracts interest at LIBOR plus a
margin of 5.5% per annum. This loan expired in June 2015 and has been renewed for another 7 years. The loan
is unsecured.
The borrowing from Export Development Fund (EDIF) was made available for the purposes of on-lending to
small scale enterprises, export insurance re-financing and credit guarantee. This is a revolving fund, which
attracts interest at a rate of 2.5% per annum. The loan is unsecured.
Borrowings totaling US$25 million from International Finance Corporation and European Investment Bank were
obtained through Ecobank Transnational Incorporated. These borrowings are unsecured subordinated debts,
which attract interest at 9.75% and 6.13% respectively, and are repayable on 5 November 2018 and 14 June 2023.
34. OTHER LIABILITIES
Collections on behalf of customers 437,879 623,083 437,879 623,083

Bankers drafts and managers cheques 16,718 25,223 16,718 25,223
Point of sale terminals 3,483 4,888 3,483 4,888
Accruals 47,434 107,610 47,266 107,422
Payables & sundry liabilities 174,239 132,673 170,475 126,219
679,753 893,477 675,821 886,835
Current 314,450 314,428 237,833 312,092

Non-current 365,303 579,049 437,988 574,743
679,753 893,477 675,821 886,835

35. STATED CAPITAL
No. of shares Proceeds
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Bank
Authorised:
Ordinary shares of no par value 500,000,000 500,000,000
Issued and fully paid

Ordinary shares of no par value 293,228,372 293,228,372
Issued ordinary shares comprise:

Issued for cash 88,692 88,692
Issued for consideration other than cash 137,949 137,949
At 31 December 226,641 226,641
There is no unpaid liability and no call or instalment unpaid on any share. There is no share in treasury.
36. INCOME SURPLUS

The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 1 January 271,445 272,852 260,078 263,775

Dividend paid relating to prior year (240,447) (246,312) (240,447) (246,312)
Transfer to statutory banking reserve (Note 40) (31,940) (40,712) (31,923) (40,700)
Transfer to regulatory credit risk reserve (Note 41) (44,310) (42,279) (44,310) (42,279)
At 31 December 208,393 271,445 198,782 260,078
37. REVALUATION RESERVE
(a) Capital surplus – land and building revaluation
At 1 January 50,129 59,056 50,129 59,056
Revaluation gain (Note 30) 79,537 - 79,537 -
Deferred tax (Note 20) (19,884) (8,927) (19,884) (8,927)
At 31 December 109,782 50,129 109,782 50,129

38. OTHER RESERVE
(b) Available for sale instruments

The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 1 January - (1,666) - (825)
Realised gain on securities disposed off (Note 25) - 2,221 - 1,100
Deferred income taxes (Note 20) - (555) - (275)
At 31 December - - - -
39. CASH AND CASH EQUIVALENTS
Cash balances (Note 23) 230,063 194,323 230,063 194,323

Government securities (Note 25) 67,658 326,491 18,584 270,968
Due from other Banks (Note 23) 1,625,736 2,270,570 1,642,540 2,269,234
Deposits from Banks (Note 31) (606,452) (542,856) (714,888) (630,288)
As shown in the statement of cash flows 1,317,005 2,248,528 1,176,299 2,104,237
Cash and cash equivalents comprise balances with less than three months maturity from the date of acquisition,
including cash on hand, deposits held at call with banks and other short term highly liquid investments with
original maturities of three months or less.
40. STATUTORY RESERVE
Statutory reserve represents cumulative amounts set aside from annual profits after tax required under the
Banking Act for Banks and the Non-Bank Financial Institutions Business Rules for leasing companies.
The proportion of net profits transferred to reserves ranges from 12.5% to 50% of net profit after tax, depending
on the ratio of the balance on statutory reserves to paid up capital.
At 1 January 323,124 282,412 322,623 281,923

Transfer from income surplus 31,940 40,712 31,923 40,700
At 31 December 355,064 323,124 354,546 322,623

41. CREDIT RISK RESERVE
Regulatory credit risk reserve represents cumulative amounts required to meet the Bank of Ghana prudential
guidelines for allowances on impairment.
The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
At 1 January 92,737 50,458 92,737 50,458

Transfer to income surplus 44,310 42,279 44,310 42,279
At 31 December 137,047 92,737 137,047 92,737
42. INVESTMENT IN ASSOCIATE
At 1 January 8,073 7,387 4,841 4,841

Share of associate profit 474 686 - -
At 31 December 8,547 8,073 4,841 4,841
The Bank has one associate, Pan African Savings and Loans Company Limited, whose results are incorporated
into its financial statements using equity accounting.
Pan African Savings and Loans Company Limited
The relationship with the Bank Strategic investment which provides microfinance to
small and medium scale enterprises.
Principal place of business/country of incorporation Accra, Ghana
Ownership interest/voting rights of the Bank 49% (2016: 49%)
Fair value of ownership interest (if listed) N/A

Financial statements extract of associates

2017 2016
GH¢’000 GH¢’000
Revenue 27,181 24,128
Profit from continuing operations 702 884

Other comprehensive income - -
Total comprehensive income 702 884
Attributable to investee’s shareholders 702 884
Total assets 64,683 55,382

Total liabilities 53,134 44,726
Net assets 11,549 10,656
Attributable to investee’s shareholders 5,659 5,221
Group’s interest in net assets at 1 January 8,073 7,387

Total comprehensive income to the Group 474 686
Dividends received during the year - -
Group’s interest at 31 December 8,547 8,073
43. CONTINGENT LIABILITIES AND COMMITMENTS
Off balance sheet items
In common with other banks, the bank conducts business involving acceptances, performance bonds and
indemnities. The majority of these facilities are offset by corresponding obligations of third parties. In addition,
there are other derivative instruments, including forwards and option contracts or combinations thereof (all
commonly known as derivatives), the nominal amounts of which are not reflected in the consolidated balance
sheet.
Nature of instruments
An acceptance is an undertaking by a bank to pay a bill of exchange drawn on a customer. The Bank expects
most acceptances to be presented, but reimbursement by the customer is normally immediate.
Other contingent liabilities include transaction related customs and performance bonds, which are generally
short-term commitments to third parties that are not directly dependent on the customer’s creditworthiness.
Commitments to lend are agreements to lend to a customer in the future, subject to certain conditions. Such
commitments are either made for a fixed period, or have specific maturity dates but are cancellable by the lender
subject to notice requirements. Documentary credits commit the Bank to make payments to third parties, on
production of documents, which are usually reimbursed immediately by customers.

The following, summarise the nominal principal amount of contingent liabilities and commitments with off-
balance sheet risks.
The Group The Bank
2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Contingent liabilities
Guarantees and indemnities 368,789 397,413 368,789 397,413
Documentary and commercial letters of credit 999,868 213,842 999,868 213,842
1,368,657 611,255 1,368,657 611,255
Legal proceedings
There were a number of legal proceedings outstanding against the Group at 31 December 2017. Although
liabilities are not admitted, if defense against the legal action is unsuccessful, potential liabilities estimated at
GH¢15,735,495.10 would be payable. Total provision of GH¢13,348,343.38 (2016: GH¢16,406,388.49) has been
made by the Group as at 31 December 2017 against losses which may arise.
44. RELATED PARTY TRANSACTIONS
(a) Transactions with executive directors and key management personnel
Key management personnel are defined as those persons having authority and responsibility for planning,
directing and controlling the activities of Ecobank Ghana Limited (directly or indirectly) and comprise the
Executive Directors and Senior Management of Ecobank Ghana Limited.
There were no material related party transactions with companies where a Director or other member of key
management personnel (or any connected person) is also a Director or other member of key management
personnel (or any connected person) of Ecobank Ghana Limited.
No impairment losses have been recorded in respect of loans to Directors or other members of key management
personnel (or any connected person).
Details of transactions between Directors and other key management personnel (and their connected persons)
and the Group are as follows:

2017 2016
GH¢’000 GH¢’000
Short term employee benefits

Salaries and other short term benefits 9,974 7,666
Social security contributions 388 27
10,362 7,693
Loans
Loan outstanding at 1 January 10,203 7,269
Net movement (2,639) 2,934
Loans outstanding at 31 December 7,564 10,203
Interest income 646 763
Deposits
Deposits at 1 January 3,081 2,420
Net movement during the year (711) 661
Deposits at 31 December 2,370 3,081
Interest expense 143 186
Loans to Executive Directors and key management personnel include housing, car and other personal loans
which are given under terms that are no more favorable than those given to other staff. No impairment has been
recognized in respect of loans granted to Executive Directors and key management personnel at 31 December
2017 and 2016. The housing and car loans are secured by the underlying assets. All other loans are unsecured.
(b) Transactions with non-executive directors
Included in (a) above are loans to non-executive directors. Amount outstanding as at year end is GH¢ 1,197,258.91.
An amount of GH¢ 236,649.76 as deposits by non-executive directors is also included in total deposits in (a).
(c) Transactions and balances with subsidiaries
The Bank has 100% shareholdings in four (4) Subsidiaries (refer to page 148). Fixed deposit investments are
placed with the subsidiaries. The subsidiaries current accounts are held with the Bank. Interest accrues on these
placements at normal commercial rates.
Balances due to/from the subsidiary at the year-end were as follows:
Placement with subsidiary 130,302 113,029

Deposits with subsidiary 25,821 118,962
Interest income from placements 28,275 27,000
Interest expense on deposits 5,079 12,001

(d) Transactions and balances with parent company
The Bank is a subsidiary of Ecobank Transnational Incorporated (ETI), a company incorporated in the Republic
of Togo.
A number of transactions were entered into with the parent company in the normal course of business. These
transactions include loans, placements, deposits, foreign currency and other operational transactions. These
transactions were carried out on commercial terms and at commercial market rates and went through the
normal channels of approval.
Transactions during the year and balances at 31 December are as follows:

2017 2016
GH¢’000 GH¢’000
Placements with related parties (foreign) - 178,123

Borrowings 36,922 70,705
(e) Transactions and balances with subsidiaries of the parent company (ETI)
A number of transactions were entered into with other subsidiaries of the parent company (Ecobank Transnational
Incorporated) in the normal course of business. These transactions include loans, placements, deposits, foreign
currency and other operational transactions. These transactions were carried out on commercial terms and at
commercial market rates and went through the normal channels of approval.
Placements 478,414 855,090

Other assets - 72
45. REGULATORY DISCLOSURES
1. Non-performing loans ratio
The percentage of gross non-performing loans (“substandard to loss”) to total credit/advances portfolio (gross)
was 20.04% (2016: 11.90%) per Bank of Ghana’s prudential guidelines. As per IFRS, the Bank recorded NPL of
15.29% (2015: 15.87%)
2. Capital adequacy ratio
The capital adequacy ratio at the end of December 2017 was calculated as stated below:
The Group - 13.76% (2016: 15.29%)

The Bank - 12.57% (2016: 14.74%)

3. Compliance with statutory liquidity requirement
• Default in Statutory Liquidity-None

• Default in Statutory Liquidity- Sanction (GH¢ Nil)
4. Liquid ratio
The key measure used by the bank or Group for managing liquidity risk is the ratio of net liquid assets to deposits
from customers. For this purpose net liquid assets are considered as including cash and cash equivalents and
investment grade debt securities for which there is an active and liquid market less any deposits from banks,
debt securities issued, other borrowings and commitments maturing within the next month. Details of the
reported bank or Group (liquid ratio) ratio of net liquid assets to deposits and customers at the reporting date
and during the reporting period were as follows:
2017 2016
Group 36.90% 54.95%

Bank 35.26% 53.28%
Average for the period 44.27% 53.01%
Maximum for the period 36.90% 54.95%
Minimum for the period 35.26% 36.26%
46. BUSINESS SEGMENTS
As at the end of the year 2017, the Bank operated the following business units:
• Consumer banking - This is personal banking and specializes in serving the Premier, Advantage, Classic and
Direct customers
• Commercial Banking - This is Business Banking and Medium Local Corporates with the following sub-
segments SMEs, Medium Local corporates and Non-government public sector (schools, faith, NGOs &
professional bodies)
• Corporate & Investment Banking - Specialises in serving the public sector, multinational institutions, financial
institutions/international organizations and the Regional Corporate segment of the market.
Transactions between business segments are on normal commercial terms and conditions. Funds are ordinarily
allocated between segments, resulting in funding cost transfers disclosed in operating income. Interest charged
for these funds is based on the Group’s cost of capital.

The Group’s operations are based in Ghana. There are no separately distinguishable geographical segments.
The segmental information provided to the Board for reportable segments for the year ended 31 December is
as follows:
The Group Consumer Commercial Corporate Group

At 31 December 2017 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Other operating income 4,276 5,909 15,710 25,895
Other revenue - - 3,921 3,921
Revenue 292,746 211,909 612,191 1,116,846

Other income - - 267 267
Loan impairment loss (1,446) (3,432) (169,062) (173,940)
Net operating income 291,300 208,477 443,396 943,173
Personnel expenses 110,352 88,471 144,849 343,672

Depreciation and amortization 7,127 5,462 13,707 26,296
Other operating expense 76,554 55,524 83,218 215,296

Share of profit of associate (net of tax) - - 474 474

Tax expense (27,854) (16,902) (59,982) (104,738)
Segment assets 1,048,573 704,409 7,345,158 9,098,140
Segment liabilities 2,490,160 1,955,646 3,615,407 8,061,213

The Group Consumer Commercial Corporate Group


Other revenue - - 4,140 4,140
assets measured at amortised cost - - 177,854 177,854
Revenue 349,954 228,044 628,659 1,206,657

Net operating income 344,423 203,465 480,463 1,028,351


Share of profit of associate (net of tax) - - 686 686

Tax expense (43,040) (18,177) (73,563) (134,780)
Segment assets 928,565 623,790 6,504,515 8,056,870

The Bank Consumer Commercial Corporate Group

Other revenue - - 19,931 19,931
Revenue 292,746 211,909 611,176 1,115,831

Net operating income 291,300 208,477 442,382 942,159


Tax expense (27,854) (16,902) (57,620) (102,376)
Segment assets 3,301,116 938,180 4,859,396 9,098,692

The Bank Consumer Commercial Corporate Group


Other revenue - - 16,942 16,942
assets measured at amortised cost - - 177,854 177,854
Revenue 349,954 228,044 623,170 1,201,168

Net operating income 344,423 203,465 475,001 1,022,889


Tax expense (42,526) (17,960) (71,106) (131,592)
Segment assets 928,565 623,790 6,473,155 8,025,510
47. DIVIDEND PER SHARE
At the forthcoming meeting, the directors do not recommend any dividend payment (2016: Divident of 82 Ghana
Pesewas per share amounting to a total of GH¢240,447,265.04).
48. CORPORATE SOCIAL RESPONSIBILITY
Ecobank recognizes the role the communities play in ensuring the Bank remains in business. Giving back to
these communities is a core objective for the Bank at both the corporate and individual levels. During the year,
the Bank continued with its corporate social responsibility (CRS) programs with a key focus on education, health,
financial inclusion and others. A total of GH¢1.71 million was committed to CSR activities this year.

49. NON-COMPLIANCE WITH SECTIONS OF THE BANKS AND SPECIALISED DEPOSIT-

TAKING INSTITUTIONS ACT, 2016 (ACT 930)
Section 64(2) of Act 930 prohibits a bank, specialised deposit-taking institution or financial holding company
from taking an aggregate financial exposure in respect of its affiliates in excess of twenty-five percent (25%) of
its net own funds. The Bank had placements with its affiliates exceeding this prescribed exposure limit as at the
end of the year.
Section 69(3) of the Act also states that the aggregate amount of loans on preferential terms, both secured and
unsecured by a bank or specialised deposit-taking institution to its employees shall not exceed twenty percent
(20%) of the net own funds of that bank or specialised deposit-taking institution. As at the end of the year, the
Bank had exceeded the prescribed limit.

APPENDICES
• Shareholders’ Information
• Five year Financial Summary
• Value Added Statement

APPENDIX I
SHAREHOLDERS’ INFORMATION
Number of Shareholders
The Bank had 13,705 ordinary shareholders at 31 December 2017 distributed as follows:
2017 2016
No. of % of shares No. of % of share
holders held holders held
Category
1-1,000 12,261 1.14 12,280 1.15

1,001-5,000 1,081 0.70 1,087 0.70
5,001-10,000 168 0.39 167 0.39
10,000 and over 194 97.77 171 97.76
Total 13,704 100.00 13,705 100.00
Directors’ Shareholding
The Directors named below held the following number of shares in the Bank at 31 December 2017:
No. of shares % Holding
Terence Ronald Darko 80,000 0.027

Daniel Kwei-Kuma Sackey 10,000 0.003
Samuel Ashitey Adjei 41,260 0.014
Martin Eson-Benjamin 2,590 0.001
Morgan Fianko Asiedu 2,025 0.001
Rosemary Yeboah 758 0.000
Felicity Acquah 640 0.000
Total 137,273 0.046

APPENDIX I
20 Largest Shareholders
No. of shares % Holding
Ecobank Transnational Incorporated 202,129,934 68.93

Social Security and National Insurance Trust 47,527,858 16.21
SCGN/SSB & T AS Custodian Re SQM Frontier Africa Masters 8,207,445 2.80
Compagnie Africaine de Financement et de Participation-Holing 6,897,425 2.35
African Tiger Mutual Fund 4,407,075 1.50
Ghana Reinsurance Company Limited General Business 3,901,190 1.33
Teachers Fund 1,809,738 0.62
Verdipapirfondet Holberg Rurik Scgn/Citibank London 1,171,700 0.40
SCGN/Citibank London Verdipapirfondet Holberg Global 1,081,042 0.37
SCGN/Enterprise Tier 2 Occupational Pension Scheme 436,640 0.15
SCGN/Citibank Kuwait INV Authority 393,500 0.13
HFCN, Cocobod Tier 3 Pension Scheme 285,960 0.10
HFCN/ Cocobod Tier 3 Pension Scheme (Old Fund) COL, 255,098 0.09
Boateng, Opoku Gyamfi 250,000 0.09
SIC Insurance Company Ltd 232,603 0.08
SCGN/CACEIS Bank Lux Re Intereffekt Investment, Funds N.V 224,600 0.08
Okubanjo, Oloye Oladotun Okunowo 210,096 0.07
HFCN, EDC Ghana Balanced Fund Ltd 199,728 0.07
SCGN/JP Morgan Chase Duet Victoire Africa, Index Fund IC 196,428 0.07
SCGN/U.P.S BBG Staff Occupational Pension FD Sch 190,064 0.06
280,008,124 95.49

APPENDIX II
FIVE YEAR FINANCIAL SUMMARY

(All amounts are expressed in thousands of Ghana Cedis)
2017 2016 2015 2014 2013
Income Statement
Revenue 1,116,845 1,206,657 1,023,129 857,737 589,603

Profit before tax 358,383 462,676 458,560 446,941 267,874
Profit after tax 253,645 327,896 321,266 319,965 190,633
Dividend - 240,447 246,312 231,650 126,088
Statement of Financial Position
Loans and advances to customers 2,685,467 3,480,544 3,117,873 2,709,517 2,126,820

Customer deposits 6,541,648 5,416,916 4,837,950 4,234,434 3,246,674
Total assets 9,098,140 8,056,870 6,691,810 5,767,608 4,694,261
Shareholder equity 1,036,927 964,076 889,753 798,423 560,929
Statistics
Dividend per share in pesewas - 82 84 79 43

Earnings per share in pesewas 87 112 110 109 65
ROAE (%) 25 35 38 47 37
ROAA (%) 3.0 4.4 5.2 6.1 4.7

APPENDIX III
VALUE ADDED STATEMENT

Value added statements for the year ended 31 December 2017
The Group The Bank

2017 2016 2017 2016
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Interest earned and other operating income 770,163 915,021 753,613 897,022
Direct cost of services (214,295) (227,468) (213,997) (228,177)
Value added by banking services 555,868 687,553 539,616 668,845
Non-banking income 347,423 292,613 362,486 304,437
Impairments (173,940) (178,597) (173,939) (178,570)
Value added 729,351 801,569 728,163 795,712
To employees
Directors (without executives) 1,554 1,000 1,550 1,000
Employees (Including directors) 344,226 316,359 343,658 315,993
To Government
Income tax 104,738 134,780 102,376 131,592
To providers of capital
Dividends to shareholders - 240,447 - 240,447
To expansion and growth

Depreciation 22,640 17,115 22,639 17,114
Amortisation 3,656 4,419 3,656 4,419
Retained earnings 253,645 87,449 255,384 85,147

PROXY FORM
I/WE, being a Member(s) of the above-named Company hereby

appoint or failing him/her the Chairman of the Meeting as my/our
Proxy to vote on my/our behalf at the Annual General Meeting (AGM) of the Company to be held on
Friday, 11th May, 2018 at 10:30 am prompt.
DATED THE DAY OF , 2018.
MEMBER
This Form is to be used in favour of/against the Resolution set out in the Agenda. FOR AGAINST
1. TO ADOPT ACCOUNTS
2. TO RATIFY the appointment of the following Director for a 3 year term

MR. HENRY DODOO-AMOO

DR. OHENE AKU KWAPONG

DR. JOHN OFORI-TENKORANG
5. TO APPOINT MESSRS PWC as Auditors
6. TO AUTHORISE Directors to fix remuneration of the Auditors
SPECIAL RESOLUTIONS
7. TO AUTHORISE an increase in Stated Capital up to GHS 416,641,000
8. TO AUTHORISE a transfer the sum of GHS 190,000,000 from

Income Surplus to Stated Capital
9. TO AUTHORISE a Capitalization Issue by the issuance of one (1) ordinary share to

each existing shareholder for every ten (10) ordinary shares held,
to be credited as fully paid for
Please indicate with an “X” in the spaces above how you wish your vote to be cast. Unless otherwise instructed,
the Proxy will vote as he thinks fit.
If executed by a body corporate, this Proxy Form should be completed by the signature of a duly authorized
Officer and should be accompanied by a resolution in accordance with Section 165 of the Companies Act, 1963
(Act 179).
To be valid, this Proxy Form must be filled up, signed and lodged (together with any authority under which it
is signed) with the Registrars at Ghana Commercial Bank, Registrars Office, Thorpe Road, High Street, Accra no
later than 3:00 pm on Thursday, the 10th day of May, 2018.

DRAFT RESOLUTIONS
Draft Resolutions of Annual General Meeting

of Ecobank Ghana Limited
Ordinary Resolutions
1. The General Meeting hereby adopts the Statement of Accounts of the company for the year ended
the 31st day of December, 2017 together with the reports of the Directors and auditors thereon.
2. The General Meeting hereby ratifies the appointment of Mr. Henry Dodoo-Amoo as a Director for a
3 year term.
3. The General Meeting hereby ratifies the appointment of Dr. Ohene Aku Kwapong as a Director for a
3 year term.
4. The General Meeting hereby ratifies the appointment of Dr. John Ofori-Tenkorang as a Director for
a 3 year term.
5. The General Meeting hereby appoints Messrs PricewaterhouseCoopers as Auditors for the Bank.
6. The General Meeting hereby authorises the Directors to fix the remuneration of the Auditors.
Special Resolutions
7. The General Meeting hereby authorizes the Directors to increase the stated capital of the Company
up to GHS 416,641,000 in accordance with Section 66 (1) of the Companies Act, 1963 (Act 179).
8. The General Meeting hereby authorizes the Directors to transfer the sum of GHC190,000,000 from
Income Surplus to Stated Capital pursuant to section 66 (1) of the Companies Act, 1963 (Act 179).
9. The General Meeting hereby authorizes the Directors to undertake a Capitalization Issue in accordance
with Section 74 (1) of the Companies Act, 1963 (Act 179) and section 43 (a) of the Regulations of the
Company by the issuance of one (1) ordinary share to each existing shareholder for every ten (10)
ordinary shares held, to be credited as fully paid for.

32.
33.
34.
35.
36.
37.
38.
39.
Ecobank Ghana Ltd
2 Morocco Lane
Off Independence Avenue - Accra
Ghana
ecobank.com

Ecobank Financial Report For 2017

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Ecobank Financial Report For 2017

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Ecobank Annual Report 2017 1

Ecobank Ghana branches

Consolidated statement of comprehensive income 72

2 Ecobank Annual Report 2017

More clients using A strong and The opening of our

World class Strong growth in

Ecobank Annual Report 2017 3

DATED AT ACCRA THIS 1ST DAY OF FEBRUARY, 2018.

BY ORDER OF THE BOARD

AWURAA ABENA ASAFO-BOAKYE (MRS.)

4 Ecobank Annual Report 2017

Terence Ronald Darko (Chairman) CORPORATE INFORMATION

Morgan Fianko Asiedu

Ecobank Annual Report 2017 7

Mr. Terence Ronald Darko is the Managing Director of Mechanical Lloyd

Mr. Daniel Nii Kwei-Kumah Sackey - Managing Director

8 Ecobank Annual Report 2017

Mrs. Felicity Acquah, a Project Analyst and Development Banker by profession,

Mr. Martin Eson-Benjamin - Non-Executive Director

Ecobank Annual Report 2017 9

Mr. Henry Dodoo-Amoo - Non-Executive Director

Mr. Henry Dodoo-Amoo is the Chief Executive Officer of IAF Management

Dr. Ohene Aku Kwapong - Non-Executive Director

Dr. Ohene Aku Kwapong is a Chemical / Financial Engineer by profession. He is

10 Ecobank Annual Report 2017

Dr. Ofori-Tenkorang is a seasoned Investment Banker and Engineer. He is

Mr. Samuel Ashitey Adjei - Non-Executive Director

Mrs. Rosemary Yeboah - Non-Executive Director

Mrs. Rosemary Yeboah is an experienced Banker with over 22 years banking

Ecobank Annual Report 2017 11

Mr, Morgan Fianko Asiedu - Executive Director

Mr. Edward Nartey Botchway - Executive Director

Mr. Edward Nartey Botchway joined Ecobank Ghana in November 2004. He

12 Ecobank Annual Report 2017

Ecobank Annual Report 2017 13

Daniel Nii Kwei- Morgan Asiedu Edward Botchway

Samuel Hiram Yaro Awuraa Abena Asafo-Boakye Tara Squire

14 Ecobank Annual Report 2017

Daphne Oppong Patrick Bleboo Alfred Sakyi

Joana Mensah Henry Ampong Albert Bartlett-Mingle

Rita Tsegah John Nyaaba Carl Asem

Ecobank Annual Report 2017 15

Total assets 9,098,140 8,056,870 9,098,692 8,025,510

Loans and advances to customers (net) 2,685,468 3,480,544 2,685,759 3,480,471

Customer deposits 6,541,648 5,416,916 6,447,818 5,316,625

Shareholders’ equity 1,036,927 964,076 1,026,798 952,208

For the year ended 31 December

Revenue 1,116,846 1,206,657 1,115,831 1,201,168

Profit before tax 358,383 462,676 357,760 457,186

Profit after tax 253,645 327,896 255,384 325,594

Dividend per share (Ghana pesewas) - 82 - 82

Earnings per share (Ghana pesewas):

- Basic 87 112 87 111

- Diluted 87 112 87 111

Return on average equity (%) 25 35 26 36

Return on average assets (%) 3.0 4.4 3.0 4.5

Number of staff 1,583 1,617 1,575 1,611

Number of branches & agencies 67 77 67 77

16 Ecobank Annual Report 2017

• Global Corporates primarily focuses on Global Conglomerates and Multinational Corporations

18 Ecobank Annual Report 2017

• Processing of Trade instructions

Ecobank Annual Report 2017 19