Ecobank Transnational Incorporated (ETI), a pan-African banking conglomerate, recorded a 68 percent growth in earnings last year, according to its latest audited financial statement.
The group reported an after-tax profit of N264 billion in 2023, up from N156.6 billion in 2022. Its interest income grew by 75 percent to N1.2 trillion, non-interest revenue rose by 60 percent to N579 billion, and gross revenue grew by 69 percent to N1.62 trillion.
“2023 was a challenging year for many households, businesses, and governments across Africa due to higher inflation, higher interest rates, weakening currencies, and uncertainty in the economic outlook,” Jeremy Awori, CEO of Ecobank Group, said.
He said the encouraging results reflect a re-energised commitment to putting their customers first and the work they have started on revenue diversification, growth, and low-cost deposit mobilisation.
“For instance, our Consumer and Commercial banking businesses increased their share of group-wide revenues and profits. In addition, we continued our proactive approach to disciplined cost management, aimed at eliminating unproductive and wasteful costs and redirecting savings into investments in marketing and branding, sales capabilities, and technology that should drive returns in the future,” Awori added.
Here are five highlights from ETI’s full-year report
Profit rises to N263.5bn
ETI’s after-tax profit rose to N263.5 billion in 2023 from N156.551 billion recorded in 2022.
Net interest income up 75%
ETI bank’s net interest income surged by 75 percent N756.8 billion in 2023 from N432.7 billion in 2022.
Interest income climbed 75 percent to N1.2 trillion last year, from N690 billion in 2022 while net revenue increased by 68 percent to N1.33 trillion from N794 billion.
Other interest income stood at N876 million at the end of the financial period indicating an 89 percent decline from N8.16 billion in 2022.
ETI’s interest expenses stood at N451 billion in 2023, 75 percent from N257 billion in 2022.
Operating expenses increase to N720.5bn
ETI’s operating expenses stood at N720.5 billion in 2023, 69 percent from N448.4 billion at the end of the financial period of 2022. Staff expenses stood at N299 billion, a 57 percent increase from N190 billion.
Depreciation and amortisation stood at N58.3 billion last year, indicating a 35 percent dip from N43.2 billion at the end of the financial year in 2022.
However, operating income stood at N1.3 trillion indicating a 68 percent increase in 2023 from N794.9 billion in 2022.
The bank said, “The increase was predominantly driven by continued increases in the general prices of goods and services. Other cost drivers included technology-related costs, operations and processes, and higher Nigeria.”
Loans and advances to customers grow by 88%
ETI’s loans and advances to customers grew by 88 percent to N10 trillion in 2023 from N5.3 trillion in 2022.
The bank’s loan and advances to customers hit N10 trillion, which was driven by term loans which rose the highest to N9.3 trillion, followed by bank overdrafts of N1.1 trillion, mortgage loans of N135 billion, and credit cards of N1 billion.
Among the analysis of the loans and advances to customers, gross loans and advances grew by 98.1 percent to N10.5 trillion in 2023 from N5.3 trillion recorded in 2022.
Cash and cash equivalents jump to N3.7trn
ETI’s cash and cash equivalent at the end of the 2023 financial year, stood at N3.7 trillion, a 138 percent increase from N1.55 billion in 2022.
The bank’s net cash from operation increased to N782 billion, net cash from investing activities rose to N29 billion and net cash from financing activities reported a negative cashflow of N72 billion.
