Ecobank Profit Plunges by 66 Percent in 2020

Ecobank Group struggles with COVID-19 disruption in the financial year ended December 31, 2020 as profit after tax declined by 66 percent from N99.462 billion in 2019 to N33.742 billion in 2020.

In the audited financial statements released for the full year, gross earnings dropped by 0.2 percent to N841.143 billion in 2020, slightly down from N842.490 billion achieved in 2019.

However, revenue rose by 9 percent from N586.879 billion posted in the corresponding period to N641.753 billion in 2020.

Operating profit before impairment losses equally grew by 20 percent to N239.059 billion from N198.566 billion filed in 2019.

Ecobank’s profit before tax and goodwill impairment declined by 12 percent to N129.088 billion in the period under review from N146.544 billion recorded in the corresponding period of 2019.

Profit before tax plunged by 55 percent from N146.544 billion in 2019 to N66.598 billion in 2020.

The bank’s total assets grew by 20 percent to N10.384 billion, up from N8.622 billion in 2019.

Loans and advances to customers also surged by 9 percent to N3.699 billion in 2020 from N3.383 billion in 2019. While customers’ deposits grew by 24 percent from N5.925 billion in 2020 to N7.325 billion in 2020.

Ecobank’s total equity expanded by 18 percent during the period under review to N811.754 billion from N687.743 billion in 2019.

Speaking on the performance, Ade Ayeyemi, Ecobank Group CEO, said: “2020 was a year which tested the resilience of the human spirit in rising to the many challenges as governments, businesses and households’ unrelentingly strove to keep citizens, clients and loved ones safe. I am proud of Ecobankers’ hard work and continued service to our customers and the support we provide to the communities we serve.”

“We will continue to invest in our technology and payment business capabilities to ensure we deliver excellence in customer service. We remain optimistic about future growth and ability to create shareholder value by utilising our investments and achievements to grow revenues and generate long-term returns, despite the nearterm challenges from COVID-19. I thank all Ecobankers for their continued dedication to helping our customers, communities and governments,” Ayeyemi concluded.