The earnings of Ecobank Transnational Incorporated (ETI), a pan-African banking group, rose to the highest in at least nine years of N311 billion in the first six months of 2024, data compiled by BusinessDay shows.
According to the firm’s latest financial statement, its after-tax profit rose by 196 percent to N311 billion in H1 from N105 billion in the same period in 2023, according to the company’s latest financial statement released on Tuesday.
BusinessDay analysis shows that the surge was fueled by rising interest income calculated using the effective interest rate by 175 percent to N1.2 trillion in H1 from N445 billion in the previous year.
On the other side, the bank’s interest expense surged 160 percent to N464 billion from N178 billion driven by the high-interest rate environment.
The country’s benchmark interest rate, also known as the Monetary Policy Rate, has been raised by 800 basis points in 2024, marking four consecutive times with the most recent increase in July to 26.75 percent.
Further breakdown of the financial statement disclosed that Ecobank’s gross earnings surged by 179 percent to N1.78 trillion to N667 billion, trading income surged by 125 percent to N230 billion, while its net interest income dipped by 142 percent to N941 million from N2.2 billion.
Read also: Ecobank grows half year PBT by 195% to N443.5bn
The statement also revealed that net interest income grew by 186 percent in the period under review to N763 billion from N267 billion recorded in the same period of 2023.
Fee and commission income increased by 186 percent to N384 billion in the period under review from N134 billion recorded in the same period the previous year.
Profit before tax for the period appreciated by 195 percent to N443 billion from N150 billion recorded in the same period of 2023.
However, operating expenses increased by 165 percent to N728 billion in the first half of 2024 from N274 billion recorded in the same period in 2023.
Ecobank’s total assets during the period also rose by 92.5 percent to N38.5 trillion with loans and advances to customers up by 75 percent to N14 trillion from N8 trillion as of June 2023.
Similarly, deposits from customers increased by 78 percent to N26.2 trillion.
Net cash flow from operating activities for the period amounted to N509 billion from N21.9 billion recorded in the same period of 2023.
Net cash flow used in investing activities dropped by 67 percent to N19 billion from N58 billion recorded in the same period last year.
Ecobank’s net cash flow from financing activities improved in the first half of the year, despite remaining negative. The outflow of cash amounted to N75.5 billion, down from N34.3 billion in the same period of 2023.
Cash and cash equivalents at the end of the period amounted to N5.5 trillion, up from N2.2 trillion in the same period of 2023.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
