Ecobank Transnational Incorporated (ETI), a leading pan-African banking group, reported a significant increase in gross earnings which rose by 59 per cent to N1.2 trillion during the first nine months of 2023, underpinned by Nigeria’s rising interest rates which has been raised by 725 basis points to 18.75 per cent since May 2022.
In addition to the rise in gross earnings, the financial statements of ETI also showed a significant increase in the company’s profit-after-tax. In the first nine months of 2023, the company’s profit-after-tax rose by 94 per cent to N77.7 billion from N40.1 billion in the same period of 2022. In dollar terms, this represents a profit increase from $93.5 million to $98.3 million.
In addition to the impressive figures reported for profit-after-tax, it isworth noting that the Ecobank generated a significant profit before tax of $450 million for the nine months to September. The profits attributable to ETI shareholders were $224 million, resulting in a return on tangible shareholders’ equity of 25.6 percent. This was largely driven by the group’s strong revenue growth of 34 percent in constant currency and an improved cost-to-income ratio of 53.7 percent.
Ecobank’s financial statement also showed that interest income grew by 66 per cent in the period under review, from N485.9 billion in 2022 to N805.1 billion in 2023, while non-interest revenue also increased by 49 per cent, from N258.7 billion in 2022 to N386 billion in 2023.
On a similar trajectory, the company’s profit for the period increased by 56 per cent to N18.9 billion, up from N117.4 billion in the same period of 2022.
However, operating expenses rose by 48 per cent, to N475.3 billion in the period under review.
During the period under review, the Ecobank group’s total assets increased by 55 percent to N20.69 trillion. This was largely due to a significant increase in loans and advances to customers, which rose by 56 percent to N7.89 trillion from N5.07 trillion in September 2022.
Ecobank’s net cash flow from operating activities stood at N636.2 billion, compared to N169.5 billion in the same period of 2022, while net cash flow used in investing activities was N184.7 billion, compared to N169 billion in the same period of 2022.
In the third quarter of 2023, the group’s net cash flow from financing activities improved, despite remaining negative overall. This was due to a significant reduction in the outflow of cash, from N211.9 billion in the same period of 2022 to N35.5 billion in the third quarter of 2023.
Meanwhile, the group’s cash and cash equivalents at the end of the period stood at N2.29 trillion, an increase of N934.3 billion from the same period of 2022.
Commenting on the group’s impressive financial performance, Jeremy Awori, chief executive officer of Ecobank Group, noted that the group plans to continue to invest in technology to drive growth and improve customer experience. He highlighted the importance of digitalisation and innovation in the banking sector, and emphasized the group’s commitment to investing in technology and digitalisation initiatives.
He said, “We will invest further in technology, in all its forms, to provide better, faster, and easier services to our customers. Furthermore, we are investing in building our brand to create greater connections and support our growth businesses.”