Ecobank Group has announced net revenues (net interest income plus non-interest revenue) of $994 million or N1.86 trillion in half- year financial period ended June 30, 2024.
The figure increased by 2 percent or at constant currency, increasing 21 percent, from the prior year.
The increase in revenues was due to the positive impact of higher interest rates, loan repricing in some of our markets, trade loans and trade services fees, and higher deposit margins.
Partially offsetting revenue growth were lower noninterest revenues, especially from client-driven foreign currency and fixed-income sales, and significantly reduced revaluation gains, resulting primarily from Zimbabwe’s currency volatility.
Group profit attributable to shareholders of ETI in the first half of 2024 was $158 million or N443.5 billion, which decreased 2 percent from the prior year period, primarily due to the adverse effects of foreign currency translation impact from US dollar appreciation, lower profit contribution from Nigeria, and a proactive increase in central impairments reserve overlays charged against attributable profits, compared to the prior year.
Excluding the impact of foreign currency translation, the profit attributable increased by 27 percent.
Group profit before tax increased 5 percent, or 23 percent when adjusted for foreign currency translation effects, to $324 million, reflecting strong net interest income growth and well-managed credit costs, partially offset by higher inflationary-driven expenses and proactive increase in central impairments reserve overlays.
Jeremy Awori, CEO of Ecobank Group, said, “Our half-year results demonstrate the strength of our diversified business model. Despite facing macroeconomic challenges in some of our operating markets, the company increased its net revenues to $994 million and its profit before tax by 5% to $324 million. Excluding the impact of foreign currency translation due to US dollar strength, the profit before tax increased by 23%. The return on tangible shareholder’s equity (ROTE) was 34.7%, compared to 27% in the previous year.”
“Our results also highlighted the significant progress made in our GTR strategy, with double-digit revenue growth in constant currency across all our businesses – 14%, 23%, and 25% in Corporate and Investment Banking, Commercial Banking and Consumer Banking, respectively. We gained share in trade services and observed increased client activity in wholesale payments and cards.
“Our transformation agenda remains our top priority, with a focus on improving customer experience and driving efficiency and productivity. Despite persistent inflation, we achieved an efficiency ratio of 53.6%. We continue to right-size our risk-weighted assets, and our deposits franchise remains strong. Customer deposits rose 13% in constant currency to $19 billion, with current and savings accounts (CASA) comprising 81% of total deposits. With a loans-to-deposit ratio of 54%, we have room to take advantage of credit opportunities that meet our risk appetite if required.
“In conclusion, we have confidence in the company’s long-term prospects. While near-term monetary and fiscal challenges persist, our sole focus remains enhancing the customer experience and meeting their financial needs. I extend my heartfelt thanks to our fellow Ecobankers for their hard work and dedication in delivering these results,” Awori concluded.
