Ecobank profit triples as revenue reaches N956 billion

Ecobank Transnational Incorporated (ETI) posted for the financial year 2021 a post-tax profit more than threefold bigger than what it recorded for the year before, according to its audited financial statement issued on Tuesday.

The pan-African lender with focus on West and Central Africa saw gross earnings climb 14 per cent to N956.4 billion within the period, thanks largely to improvement in interest income and in part to fees and commission, which increased by over one-fifth.

Operating expenses grew moderately by 5 per cent to N423.7 billion, helping to keep the pressure of costs on earnings low in turn quickening the pace of profit growth.

ETI made a provision for as much as N89.1 billion for impaired loans whose recovery has become doubtful by reason of default, which rose by 3 per cent compared to the figure for 2020.

“At 31 December 2021, gross loans and advances to customers was US$10,228 million (31 December 2020: US$9,798 million) against which total loan impairment amount of US$652 million (31 December 2020: US$558 million) were recorded, thus leaving a net loan balance of US9,576 million (31 December 2020: $9,240 million),” independent auditor Deloitte said in its report.

Profit before tax stood at N195.7 billion, 194 per cent higher than that of 2020, while after-tax profit rose 334 per cent to N146.3 billion.

Profit margin, which depicts how much revenue that has been turned into profit, was 15.3 per cent. A year earlier, the figure has been 4 per cent.

“…deposit growth was robust, increasing by $1.4 billion, or 8%, which significantly boosted liquidity and supported our modest loan growth,” said CEO Ade Adeyemi in a separate statement posted on the Nigerian Exchange (NGX) website.

“The investments in pivoting Ecobank as a credible enabler of economic activity for households, businesses and governments in Africa strengthened our optimism for 2022 and beyond, while complementing the expectation of a strong global economic recovery following the easing of Covid-19 restrictions.”

ETI closed trade on the floor of NGX on Tuesday, recording no movement.