Ecobank Group has released its audited full-year 2022 result which shows an 11 percent increase in fee and commission income to N227.8 billion on the back of the most contribution from cash management and related fees.
According to findings by BusinessDay, the top three contributors to the total fee and commission income are cash management and related fees, credit-related fees and commissions and card management fees which contributed N100.8 billion, N60.1 billion and N40.4 billion respectively in 2022.
Consecutively, the top three line items in fee and commission income with the highest year-on-year increase are corporate finance fee(126%), portfolio and another management fee (42.6%), and other fees(27%) during the period reviewed.
Ecobank received a corporate finance fee which amounted to N7.83 billion in 2022, 126 percent increase from N3.46 billion in 2021. The fees received from portfolio and other management rose to N5.56 billion in 2022,up 42.6 percent from N3.9 billion in 2021.
Ecobank’s other fees received amounted to N9.2 billion in December 2022, a 27 percent increase from N12.6 billion in the same period of 2021. While the bank received card management fees of N40.4 billion, a 26 percent increase from N32 billion in 2021.
Cash management and related fees received by Ecobank grew to N100.8 billion in 2022, a 12.6 percent increase from N89.5 billion in 2021. The bank’s brokerage fees and commissions received grew to N3.9 billion, a 7 percent dip from N4.2 billion in the reviewed period.
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Credit-related fees and commissions stood at N60.14 billion, 2 percent increase from N59.13 billion in 2021.
However, fee and commission expenses stood at N26.9 billion in 2022, 35 percent increase from N19.9 billion in 2021.
The N26.9 billion fee and commission expense in 2022 was driven by bank charges(N14.2 billion) and other fees paid(N11.7 billion) taking out a large chunk of the expenses while brokerage fees paid(N1.04 billion).
Total operating expenses rose to N448.4 billion in 2022, 6 percent increase from N423.7 billion in 2021. The bank spent N214.2 billion on other operating expenses, staff expenses(N191 billion) and depreciation and amortization (N43.2 billion).
Loans and advances to customers grew 25 percent to N5.07 trillion in 2022 which include term loans (N4.8 trillion), overdrafts(N487.8 billion), mortgage loans (N64.4 billion) and credit cards (N487.8 million).
Net gains from investment securities dropped 26 percent to N5.6 billion in 2022 from N7.6 billion in 2021.
Cash and cash equivalents at the end of the period dropped 6 percent to N1.6 trillion in 2022 from N1.7 trillion in 2021. The drop in Ecobank’s cash and cash equivalents can be largely attributable to negative net cash flow used in investing activities and financing activities.
Movement in the bank’s cash and cash equivalents revealed net cash flow used in investing activities stood at a negative cash flow of N545.7 billion in 2022 from N454.9 billion negative cash flow in 2021.
Net cash flow from financing activities stood at a negative of N56.6 billion from N135.6 positive cash flow in the comparable period.
Total equity stood dropped 6 percent N2.03 billion in 2022 from N2.16 billion in 2021. Earning per share stood at N497.24 per share from N435.13 per share in the period reviewed.
