Ecobank grows half-year profit to $296mn despite 40% surge in impairment charges

Ecobank Transnational Incorporated (ETI) grew profit after tax by six percent to $296.1 million in the first half of 2026, supported by higher interest income and stronger fee-based earnings, although a sharp rise in credit impairment charges continued to weigh on the lender’s bottom line.

The pan-African banking group’s after-tax profit increased from $278.8 million recorded in the corresponding period of 2025, while profit before tax rose to $423.0 million from $398.5 million.

The growth came despite impairment charges on financial assets jumping 40 percent to $238.0 million, reflecting a more cautious credit risk environment across its markets.

The earnings highlight the resilience of Ecobank’s diversified African operations, with stronger core banking income offsetting the higher provisions booked against loans and other financial assets.

Operating income rose 15 percent to $1.28 billion from $1.12 billion a year earlier, driven mainly by a 20 percent increase in net interest income to $750.5 million and a 14 percent rise in net fee and commission income. Trading income and foreign exchange gains remained broadly flat at $190.8 million, indicating that earnings growth was increasingly supported by traditional banking activities rather than currency-related gains.

Interest income surged by 15 percent to $1.10 billion, while interest expense increased at a slower pace of 6 percent to $352.6 million, allowing net interest income to outpace overall revenue growth. This suggests the bank continued to benefit from improved asset yields across several African markets despite elevated funding costs.

Operating profit before impairment charges increased 16 percent to $661.0 million, demonstrating that Ecobank’s core franchise remained strong before accounting for credit costs. However, the higher impairment expense reduced the conversion of operating earnings into bottom-line profit, limiting profit growth to 6 percent.

The balance sheet showed continued customer confidence. Customer deposits increased 7 percent to $27.0 billion, providing the group with a larger and relatively stable funding base. At the same time, loans and advances to customers declined 2 percent to $11.5 billion, suggesting management maintained a cautious lending stance amid prevailing credit risks across parts of the continent.

Total assets expanded 3 percent to $35.6 billion, while shareholders’ equity declined 4 percent to $2.74 billion, largely reflecting foreign currency translation losses recorded in other comprehensive income rather than deterioration in operating performance. The group reported an overall comprehensive income of only $35.7 million, compared with $670.2 million a year earlier, after recording significant negative translation adjustments on foreign operations.

Ecobank also strengthened liquidity during the period. Net cash generated from operating activities more than tripled to $1.83 billion from $567.1 million in the corresponding period of 2025, supported by stronger customer deposits and improved working capital movements. Cash and cash equivalents closed the period at $8.29 billion, compared with $5.38 billion a year earlier.