Ecobank Reports Nine-Year Record with N311bn Earnings in First Half

Ecobank Transnational Incorporated (ETI) Reports Record Earnings Growth in H1 2024

Ecobank Transnational Incorporated (ETI), a leading pan-African banking group, achieved its highest earnings in at least nine years, reaching N311 billion for the first half of 2024.

The bank’s latest financial statement reveals a substantial 196 percent increase in after-tax profit, rising to N311 billion from N105 billion in the corresponding period of 2023.

BusinessDay’s analysis attributes this remarkable growth to a significant surge in interest income, which soared by 175 percent to N1.2 trillion in H1 2024 from N445 billion the previous year. This increase was driven by the effective interest rate calculation.

Conversely, Ecobank’s interest expenses also experienced a notable increase, climbing 160 percent to N464 billion from N178 billion. This rise was influenced by the prevailing high-interest rate environment.

The Central Bank of Nigeria’s Monetary Policy Rate, the country’s benchmark interest rate, has been raised by 800 basis points in 2024, marking four consecutive hikes. The most recent increase in July pushed the rate to 26.75 percent.

The detailed breakdown of Ecobank’s financial statement reveals that the bank’s gross earnings surged by 179 percent, reaching N1.78 trillion from N667 billion. Additionally, trading income experienced a significant increase of 125 percent, rising to N230 billion. However, the bank’s net interest income declined by 142 percent, dropping to N941 million from N2.2 billion.

The financial statement also indicated a significant growth in net interest income, which rose by 186 percent to N763 billion during the review period, compared to N267 billion in the same period of 2023.

Additionally, fee and commission income saw a substantial increase, climbing 186 percent to N384 billion in the review period, up from N134 billion in the corresponding period of the previous year.

Profit before tax for the period saw a substantial increase of 195 percent, rising to N443 billion compared to N150 billion recorded in the same period of 2023.

Operating expenses in the first half of 2024 increased by 165 percent, reaching N728 billion, up from N274 billion in the same period in 2023.

Ecobank’s total assets also saw a significant rise during the period, growing by 92.5 percent to N38.5 trillion. Loans and advances to customers increased by 75 percent, reaching N14 trillion compared to N8 trillion as of June 2023.

Customer deposits experienced a substantial growth of 78 percent, reaching N26.2 trillion.

Net cash flow from operating activities for the period amounted to N509 billion, a significant increase from the N21.9 billion recorded in the same period of 2023.

Net cash flow allocated to investing activities decreased by 67 percent, amounting to N19 billion compared to N58 billion recorded in the same period last year.

Ecobank’s net cash flow from financing activities showed improvement in the first half of the year, although it remained negative. The cash outflow totaled N75.5 billion, a decrease from the N34.3 billion recorded in the same period of 2023.

The bank’s cash and cash equivalents at the end of the period increased to N5.5 trillion, compared to N2.2 trillion in the same period of 2023.