9M’21: Ecobank’s profit hits highest in 8 years
...On higher net investment income
Ecobank Transnational Incorporated (ETI) has posted its highest profit in eight years in the first nine months of 2021 as the company recorded higher net investment income.
The pan-African lender’s Profit After Tax (PAT) grew by a whopping 916 percent to N104.5 billion in the first nine months of 2021 compared to N10.2 billion in the same period last year.
The bank’s net investment income grew 523 percent to N5.56 billion in the period compared to a loss of N1.31 billion a year ago.
Net Investment income is income received from investment assets (before taxes) such as bonds, stocks, mutual funds, loans, and other investments.
Ecobank’s shares closed flat at N8 per unit, Monday. The stock has returned 35.59 percent in the past year.
The company grew its interest income 12 percent to N445 billion in the nine months period from N397 billion in the same period last year as the interest rate environment rebound compared to 2020. Interest expense also rose 13 percent to N160.6billion.
The bank’s Fees and commission income grew 25 percent to N144 billion compared to N115 billion in the first 9 months of last year. Also, Fees and commission expenses jumped 69 percent to N14.9 billion as against N8.8 billion in 9M’20.
Other operating income jumped 252 percent to N11.5 billion from N3.29 billion helped by the growth in net investment income.
Net trading income fell 13 percent to N85.4 billion in the periods under review.
Ecobank’s operating income rose 12 percent to N231.7 billion from N206 billion in the first nine months of 2021.
Depreciation and amortization grew 13 percent to N33.2 billion in 9M’2021 from N29.4 billion in the nine months period of 2020.
A closer look at the financials revealed that loans and advances to customers dropped by 1 percent to N366 billion within the first 9 months of 2021 compared to N369 billion in 2020.
Deposits from customers jumped 6 percent to N7.78 billion from N7.32 billion in the periods under review.
The bank’s total asset grew by 5 percent to N10.9 billion from N10.3 billion last year
Earnings per share jumped 700 percent to N301 kobo per share in the first nine months of the year from N50.1 kobo per share last year.
In the third-month period (July to September), the company recorded a 210 percent increase in profit to N41.9 billion compared to a loss of N38.2 billion in the third quarter of 2020.
Interest expense grew by 36 percent to N62.7 billion up from N45.9 billion in 2020 whereas interest income rose by 16 percent to N162.3 billion from N139.5 billion, in the three-month period.
Net interest income rose 6 percent to N99.6 billion between the months of July to September 2021, from N93.6 billion in the same period of 2020.
Operating expenses plunged by 2 percent to N104 billion in Q3’21, from N106.3 billion in the third quarter of 2020.
Earnings per share rose 32 percent to N126.8 kobo per share in Q3’21 from N186.6 kobo per share in the third quarter of 2020.