Ecobank grows profit to N311bn

Ecobank Transnational Incorporated has reported a profit after tax of N311bn for the first half of the year, marking a 196 per cent increase compared to the N105bn recorded in the same period last year.

This was disclosed in Ecobank Group’s performance report for the first six months of 2024.

During the period under review, the bank’s revenue rose by 186 per cent to N1.36tn from N475.65bn in H1 2023 of the previous year, driven by higher interest income and non-interest revenue.

Operating profit before impairment charges reached N631.5bn, a 215 per cent jump from the N200.77bn reported in the previous year, due to robust growth in both interest and non-interest income.

Income for H1 surged by 175 per cent to N1.23tn from N445.9bn in H1 of the previous year, due to higher yields on loans and advances, as well as investment securities.

Fee and commission income grew by 186 per cent to N384.1bn, compared to N134.38bn in the previous year, supported by increased transaction volumes and enhanced service offerings.

Despite overall strong performance, trading income and foreign exchange gains fell by 20 per cent to N230.31bn, down from N209.45bn in the previous year.

Ecobank recorded a net investment income loss of N941.51m, compared to a gain of N2.27bn in H1 of the previous year.

The bank recorded operating expenses of a 165 per cent increase to N728.73bn, up from N274.88bn in the previous year, due to higher staff costs and depreciation.

Impairment charges on financial assets increased by 273 per cent to N188bn from N50.46bn in H1 2023, attributed to heightened credit risk and cautious provisioning.

Tax expenses rose by 194 per cent to N132.49bn compared to N45.09bn last year, in line with the higher profit before tax.

The rise in customer deposits and investment securities pushed the banks’ total assets up by 49 per cent to N38.6tn as of June 2024, from N25.92tn in December 2023.

Additionally, deposits from customers grew by 49 per cent to N28.26tn, compared to N19.01tn at the end of the previous year.

The bank’s total equity decreased by 13 per cent to N2.25tn, down from N1.65tn in December 2023, on the back of exchange rate fluctuations, which affected retained earnings and reserves.

Earnings per share increased by 175 per cent to 878 kobo, up from 319 kobo in H1 2023.

ETI grew profit after tax by 11 per cent year-on-year to $407m in 2023 from $367m in 2022.