Ecobank Profit Grows by 16.6% in Q1-2025
Ecobank group profit grew by 16.6% year on year to $122.5 million in the first quarter of 2025, according to details obtained from the pan-African banking group unaudited report submitted on Nigerian Exchange platform.
Hence, Ecobank earnings per share (EPS) climbed to $0.34 from $0.28 in the comparable period in 2024. Analysts said the strong earnings performance in Q1-2025 was supported by growth in non-interest revenue and net interest income.
Gross earnings grew by 2.4% year on year to close at $675.5 million, from $659.9 million in the comparable period. Net interest income increased by 2.1% to $295.4 million in Q1-2025 from $289.4 million in Q1-2024. In the period, the group reported that impairment charges moderated to $74.8 million, down by 5.3% year on year from $79 million in Q1 2024.
Non-interest income surged by 6.9% year on year to $220.8 million from $206.5 million in the equivalent period in 2024 – supported by a 6.2% increase in net fees and commission income.
Total operating income reached $516.3 million versus $495.9 million in Q1-2024. Net interest income growth of 2.1% was primarily driven by a 2.9% decline in interest expense to $159.2 million, analysts said.
“This reduction had a more pronounced effect on core earnings than the modest 0.3% year on year increase in interest income”, CardinalStone Securities Limited said.
Analysts noted that the decline in interest expense reflects a drop in borrowed funds to $2.2 billion from $2.5 billion, which led to an 11.4% decrease in interest expense on other borrowed funds.
Despite the lower funding cost, net interest margin (NIM) remained broadly flat at 5.5%. Other operating income climbed to $8.1 million, up from $5.1 million in the comparable period.
Analysts noted that the group’s operating expenses edged down by 0.1% to $266.5 million, driven mainly by declines in depreciation and amortisation and other operating expense, which more than offset a 1.4% increase in staff costs.
All in, Ecobank group pre-tax profit grew by 16.5% year on year to $175 million from $150 million 12 months earlier. Reflecting moderate tax expense, Ecobank profit after tax surged 16.6% year on year to $122.5 million from $105 million in Q1-2024. #Ecobank Profit Grows by 16.6% in Q1-2025#
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