• Friday, September 29, 2023
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Ecobank proposes $28m dividend as full year PBT prints higher at $540m

Fitch upgrades in sight for Ecobank as naira devaluation risks recede

Ecobank Group has released its audited full year 2022 result which shows Profit Before Tax (PBT) of $540million on net revenues of $1.9billion.

Diversification benefits, underlying growth momentum, and efficiency gains drove PBT growth. The Group proposed dividend of $28million or 0.11 US cents ($0.0011) per share subject to shareholder approval at AGM.
The bank’s financial highlights show its profit before tax increased by $62 million or 13percent from 2021. If adjusted for the impact of foreign currency translation (or at constant currency), PBT increased by 52percent. A 29percent and 24percent constant currency growth, in net interest income and non-interest revenue, drove the increase in PBT.

Net revenue (operating income) was $1.9 billion, increasing by 6percent or 26percent, at constant currency, driven by a 29percent and 24percent constant currency growth in net interest income and non-interest revenue, respectively. Net interest income (NII) was $1.0 billion, and the net interest margin (NIM) was 4.9percent for 2022, compared to NII of $944 million and NIM of 4.7percent in 2021.

Non-interest revenue (NIR) was $848 million for 2022, up 4percent or 24percent at constant currency compared with 2021, with the corresponding NIR ratio (non-interest revenues as a percentage of total net revenues) being 45.6percent. Operating expenses increased by 2percent or 18percent at constant currency to $1.1 billion.
Jeremy Awori, CEO of Ecobank Group, said, “Ecobank’s strong 2022 performance reflects the strength of our diversified business model, growth momentum and efficiency, and was achieved despite operating in a challenging macroeconomic environment, which also included the difficulties that Ghana’s debt restructuring exercise placed on us.

Read also: Jeremy Awori assumes office as Ecobank Group new CEO

“We grew profit before tax by 13percent to $540 million, translating into earnings per share growth of 10percent and delivering a record return on shareholders’ equity of 21.1percent. With stubborn inflationary pressures in 2022, improving our cost-to-income ratio to 56.4percent demonstrates our discipline around cost management. Moreover, we further reduced the amount of non-performing loans to 5.2percent, reflecting our continued progress in improving credit quality. Our balance sheet is well capitalized, with a total capital adequacy ratio of 14.4percent above the regulatory minimum.”

Awori added: “I started as Group CEO on March 1st, and I would like to thank Ade Ayeyemi, my predecessor, the Board, and all Ecobankers for their invaluable contribution to the Group’s performance. Ecobank is a unique and important pan-African franchise with substantial competitive advantages. It is still early days, so I can only offer my preliminary thoughts. We are working on creating a strategic roadmap that will drive
growth, transformation and returns. In addition to our core corporate and investment banking business, we are seeing exciting opportunities for accelerating growth in our payments, consumer and commercial businesses as these represent fast-growing revenue pools in many of our markets.”

“Our focus will be on execution, and we will have a performance, sales and service culture to drive success. Success for us will mean winning with the customer. So, we will reinvigorate our customers’ experience with Ecobank through investments in building a solid and enduring brand that offers them a more personal, relevant and rewarding experience than ever before. This will also deliver further solid financial performance for the Bank.”
Awori concluded: “I thank Ecobankers across the Group for working hard and smart to meet our customers’ needs. I am excited to work purposefully with and for our customers, partners, Board, shareholders and regulators to build an Ecobank for which we can all be proud.”