• Monday, June 24, 2024
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Ecobank’s three-month earnings more than triples to N141bn

Eco bank chart

The earnings of Ecobank Transnational Incorporated (ETI), a pan-African banking conglomerate rose by 249 per cent in the first three months of 2024, according to its latest financial statement on Tuesday.

The group reported an after-tax profit of N140.8 billion from N40.4 billion in the first quarter of 2023.

Interest income calculated using the effective interest rate rose to N608.2 billion from N207.2 billion. On the flip side, the bank’s interest expense surged 160 per cent to N219.9 billion from N94.5 billion driven by the high-interest rate environment.

Further breakdown of the financial statement disclosed that Ecobank’s interest income grew by 194 per cent in Q1, as all major contributory lines recorded an increase in investment securities (248.5 per cent), loans and advances to banks (260.4 per cent), loans and advances to customers (178.7 per cent) Treasury bills and other eligible bills (144.3 per cent) and other investment (133 per cent).

The bank recorded a 217 per cent growth in net interest income to N388.3 billion in the first quarter of 2024 from N122.6 billion in the same period of 2023. Net fee and commission income increased to N18.7 billion from N5.7 billion during the period.

The bank also seemed to have gained from the Naira devaluation as Trading income and foreign exchange gains surged 202 per cent to N107.1 billion in the first three months compared to N35.4 billion in the same period last year.

ETI’s operating expenses stood at N357.9 billion in Q1’24, up 181 per cent from N127.5 billion in the same period of 2023. This was driven by Staff expenses which stood at N152.4 billion, a 178 percent increase from N54.8 billion.

Depreciation and amortisation stood at N24.8 billion in the first three months of this year, indicating a 126 per cent increase from N10.9 billion in the corresponding period of 2023.

However, operating income stood at N665.4 billion indicating a 205 percent increase from N217.8  billion.

Cash and cash equivalents at the end of the period increased to N5.2 trillion from N1.12 trillion. Movement in cash and cash equivalents reveals that net cash generated from operating activities stood at N135  billion from a negative N491 billion.

Net cash generated from investing activities stood at N477 billion from a negative N82.8 billion while net cash generated from financing activities amounted to N208 million from N73.3 billion.

Ecobank’s basic and diluted earnings per share rose to N374 in the first three from N117 last year.