Ecobank Bolsters Performance as Profit Jumps 16%
Pan African lender, Ecobank group Plc. has raised the bar on its earnings performance with 16% year-on-year growth in profit after tax.
In it unaudited financial statement for the first half of 2023, the Pan African financial boutique grew revenue with increased loan appetite as deposit collection surged.
Details showed that the group gross earnings jumped by 18% to $1,430.5 million (up 38% to NGN 695.7 billion)
In the period, it told the Nigerian Exchange in a regulatory filing that revenue spiked by 14% to $1,037.2 million (up 33% to NGN 506.1 billion)
The group operating profit before impairment charges increased by 18% to $473.8 million (up 38% to NGN 231.2 billion)
Despite the tough operating environment, Ecobank Profit before tax surged by 18% to $308.1 million (up 38% to NGN 150.3 billion)
After settling tax obligations, Ecobank reported that its annual profit advanced by16% to $215.7 million (up 36% to NGN 105.2 billion)
With historical record of balance sheet growth, the group said its Total assets were down 7% to $27.0 billion (up 53% to NGN 20,445.5 billion)
Due to market development in across the region, Ecobank group loans and advances to customers are down 3% to $10.6 billion (up 58% to NGN 8,033.1 billion)
At the same time, Deposits from customers. declined by 7% to $19.5 billion (up 53% to NGN 14,709.7 billion)
The group hinted that total equity declined 13% to $1.8 billion (up 43% to NGN 1,333.9 billion.
Speaking to the result, Jeremy Awori, CEO of Ecobank Group, said, “Our results for the first six months of 2023 demonstrate the benefits of our diversified business model, resilient balance sheet, and our commitment to serving our customers”.
He explained that profit before tax increased by 18% to $308 million and by 67% if you exclude foreign currency translation effects.
Ecobank group chief said Net revenues were up 14% to $1,037 million, or 38% in constant currency, and we delivered a return on tangible equity of 27%.
“We achieved these results despite continued challenging macroeconomic conditions in the second quarter, with significant weaknesses in African currencies, high consumer prices, and tepid economic growth.
“We have made meaningful progress in formulating our strategic roadmap, which will provide the blueprint for our Growth, Transformation and Returns agenda. Over the last few months, as I engaged with our customers, colleague Ecobankers, and other stakeholders, my confidence in our growth opportunities has been reaffirmed. We see opportunities to build stronger and better customer relationships in our businesses, forge strategic partnerships, and be the go-to Payments bank, leveraging our superior platforms”.
In addition, Awori said Ecobank will take forward the transformation and growth agenda for corporate, commercial, and consumer banking businesses.
Notably, he said achieving Ecobank goals will require even more discipline in execution, proactive risk management, and focus on delivering for our customers.
‘The prudent management of our balance sheet and capital remains a priority. We will also continue investing in our best-in-class technology, retaining and attracting talent while reinforcing the right culture,” Awori added. #Ecobank Bolsters Performance as Profit Jumps 16%#
