• Thursday, December 07, 2023
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Ecobank results reflect integration of major acquisitions in Nigeria, Ghana


Ecobank Transnational Incorporated (ETI) said its 2012 financials reflect the successful integration of its two major acquisitions in Nigeria and Ghana.

Ecobank profit after tax rose by 39 percent to $287million for the financial year ended December 31, 2012; its total revenue net of interest expense increased by $555million or 46 percent to $1.8billion. The bank said that the increase was primarily driven by a full year of contribution from Oceanic Bank and The Trust Bank (TTB) as well as strong growth across the platform in fees and commissions, cash management fees, and trading income.

The bank’s cost-to-income ratio and return on average equity improved in each quarter of 2012. Ecobank proposed dividend of $0.4 cents per ordinary share in respect of 2012. Net interest margin closed at 6.5 percent against 6.3 percent in 2011; cost-to-income ratio dropped to 72 percent from 76.5 percent in 2011; non-performing loans ratio stood at 5.6 percent slightly higher than 5.4 percent in 2011; while return-on-average equity rose to 15.8 percent against 11.9 percent in 2011.

Also, the bank told stakeholders in the Nigerian stock market during the “facts behind the figure presentation” that the full year results reflect strong demand for retail banking services across its 33 country platform, increasing trade and commercial flows between middle Africa and the rest of the world.

Thierry Tanoh, group chief executive officer, Ecobank said that the bank is closely focused on delivering cost efficiencies, whilst maintaining high levels of services and innovation. “Overall, we are confident that 2013 will be another year of progress as we further strengthen and develop the group to the benfit of all our stakeholders,” Tanoh added.

Ecobank Transnational geographical cluster financial performance showed that Ecobank Nigeria reported profit before tax for 2012 of $64.1million, an increase of $25million or 65 percent compared with 2011 level; while revenue increased by $382million or 106 percent to $743million from the prior year.