Ecobank, a leading pan-African bank, has reported an astonishing profit after tax for the financial year ended December 31, 2021.
The lender grew profit after tax by 334% to N146.3 billion in the year under review from N33.742 billion filed in the 2020 financial year.
Ecobank disclosed in its audited financial statement obtained by Investors King.
Gross earnings expanded by 14% from N841.1 billion in the corresponding year of 2020 to N956.4 billion in 2021. The increase does not stop there as net revenue climbed 12% to N719.3 billion.
Similarly, deposits rose by 14% to N8.360 trillion while loans and advances to customers grew by 10% to N4.061 trillion. See other details below.
Ecobank Financial Highlights for 2021
- Gross earnings up 6% to $2,335.7 million (up 14% to NGN 956.4 billion)
- Net revenue up 5% to $1,756.7 million (up 12% to NGN 719.3 billion)
- Profit before tax and goodwill impairment up 41% to $478.0 million (up 52% to NGN 195.7 billion)
- Profit before tax up 174% to $478.0 million (up 194% to NGN 195.7 billion)
- Profit after tax up 305% to $357.4 million (up 334% to NGN 146.3 billion)
- Total assets up 6% to $27.6 billion (up 13% to NGN 11,689.2 billion)
- Loans and advances to customers up 4% to $9.6 billion (up 10% to NGN 4,061.2 billion)
- Deposits from customers up 8% to $19.7 billion (up 14% to NGN 8,360.6 billion)
- Total equity up 7% to $2.2 billion (up 13% at NGN 917.9 billion)
Commenting on the bank’s performance, Ade Ayeyemi, CEO of Ecobank Group, said “The Bank made significant progress with its strategic priorities and delivered strong business and financial returns. We grew revenues, remained efficient, improved credit quality, strengthened the balance sheet and, for the first time since 2016, our Board has recommended the payment of dividends to shareholders. “
“We increased profit before tax by $140 million to $478 million, after adjusting for the $164 million goodwill charge in 2020 and generated a record return on tangible shareholders’ equity of 19%. Net revenues were $1.8 billion, up 5%, benefiting from our diversified operating model and the continued focus on growing our trade finance, payments, fixed income, currencies, and commodities businesses. Furthermore, the efficiency ratio of 58.9% was the best in over a decade,” Ayeyemi said.
“Credit quality continues to be particularly strong, with non-performing loans at a historic low of 6.2% of total loans and a reduction in the concentration risk of the credit portfolio. Moreover, we proactively built provision reserves to above 100% of non-performing loans. In addition, deposit growth was robust, increasing by $1.4 billion, or 8%, which significantly boosted liquidity and supported our modest loan growth. The investments in pivoting Ecobank as a credible enabler of economic activity for households, businesses and governments in Africa strengthened our optimism for 2022 and beyond, while complementing the expectation of a strong global economic recovery following the easing of Covid-19 restrictions.“
“However, a word of caution following two critical global setbacks: IMF’s plan to cut global growth forecast, in a high inflation environment with about 60% of low-income countries in or at risk of ‘debt distress’; and Russia’s recent invasion of Ukraine. In this mix, African economies hang in the balance as contagion risks spread, US Fed and other developed-world central banks hike interest rates, energy prices soar, and geopolitical tensions exacerbate inflation and supply chain bottlenecks. Already the reverberations from these developments have forced some central banks in Africa to hike rates, as prices of goods and services soar and currencies are under pressure, all with security implications. In all this turmoil, we at Ecobank remain highly focused on conducting our business responsibly, committed to ESG principles, and discharging our investment in the Ecobank Foundation. We will continue to be aggressive in driving our strategic priorities, leading with technology, and serving our clients and communities. “
“Finally, I want to thank all Ecobankers for their unwavering commitment to realising our vision and remaining the bank that Africa and friends of Africa trust.”
CBN Issues Directive For Open Banking to Improve Financial Services
In an effort to stimulate innovation and widen the range of financial products and services available to banks’ customers, the apex regulatory bank, the Central Bank of Nigeria (CBN), has established the legal framework for Open Banking in Nigeria.
This was revealed in a circular titled ‘Operational guidelines for open banking in Nigeria’ which was obtained by Investors King.
The Regulatory Framework for Open Banking in Nigeria, according to the CBN, establishes standards for data sharing across the banking and payments systems in order to stimulate innovation and expand the range of financial products and services available to bank customers.
According to the CBN, the financial sector data guideline would allow clients to access innovative financial products and services.
The Apex bank said: “Open banking recognises the ownership and control of data by customers of financial and non-financial services, and their right to grant authorisations to service providers to access innovative financial products and services. This is anticipated to drive competition and improve access to banking and payments services”.
The CBN also added that participants in open banking shall adhere strictly to security standards when accessing and storing data, and shall be subject to minimum privacy standards, operational standards, risk management standards and customer experience standards as prescribed by the Bank.
According to the CBN, any organization with customer data that may be transferred with other businesses in order to deliver innovative financial services within Nigeria is eligible to participate in the Open Banking ecosystem.
Open banking is a banking practice in which banks and non-bank financial organizations provide third-party financial service providers open access to customer banking, transaction, and other financial data via application programming interfaces (APIs).
FY 2021: Unity Bank Grosses N50.28bn in Earnings and N3.33bn in Profit
Unity Bank Plc has declared a profit before tax of N3.33 billion in the financial year ended December 2021, indicating a 49.9 percent increase from the N2.22 billion it recorded in 2020.
Similarly, a review of the lender’s 2021 full-year result filed with the Nigeria Exchange Group showed a significant improvement in its bottom line as Profit after tax rose by 52.1 percent to N3.17 billion from N2.09 recorded in the corresponding period of 2021.
The bank also grew gross earnings, rising by 8.1 percent to N50.28 billion from N46.52 billion in 2021.
This comes on the heels of a faster than expected recovery from the disruptions of the COVID-19 pandemic, which provided an opportunity for the lender to expand its retail footprint through strategic product offerings that appealed to broader segments of the market.
Another key highlight of the agribusiness-focused lender’s financial performance is the growth of its assets, which rose by 9.5 percent to close at N538.87 billion from N482.02 billion in 2020, cumulating three years of consecutive high growth.
Equally, the Bank grew assets by 39 percent and 67.9 percent in 2019 and 2020 respectively to see a rebound with an even greater resurgence in the lender’s profitability for two successive years.
Also, in the year under review, the lender grew its loan portfolio significantly, increasing by 33.2 percent to N269.27 billion from N202.08 billion, following the Bank’s aggressive focus on boosting its liquid assets base.
Another top-line performance of the audited financial statements recorded was growth in the lender’s net operating income, which rose to N28.41 billion from N21.3 billion in the corresponding period of 2020, representing a 10.9 per cent increase. This is even as the net interest income recorded a significant jump by 12.2 percent to N20.05 billion from N17.74 billion in the corresponding period of 2020. Earnings per Share closed at 27.15 Kobo.
Commenting on the result, the Managing Director/CEO, Unity Bank Plc, Mrs. Tomi Somefun, stated that the key performance indicators have continued on a trajectory of healthy balance sheet growth, asset quality and profitability achieved on the back of deft diversification of the Bank’s earnings base that balances out fairly in asset creation, investments and trade activities and riding on the innovative customer-centric product offerings for both the retail and consumer segments of the market.
She shared the optimism that given the increased focus of the Bank on growing its retail footprints supported by significant investment being made in technology to expand its digital banking space, the growing contribution of the channels and platforms delivery will further boost the multiple streams of income in the coming years.
She further stated, “the Bank’s growing profile in Agribusiness has now placed it on a pedestal that enables it to attract significant value chain businesses for the continuous growth of its Retail and SME Banking whilst the Bank consistently deploys product development/marketing initiatives to further grow the brand franchise, maximise the benefits and boost retail growth to double digits”.
Overall, positive sentiments around the repositioning of the Bank and the outcome continue to dominate opinion among analysts as informed by the outlook for the future and as market confidence continues to improve.
FirstBank Goes Beyond Banking, Reiterates Commitment To Healthcare Via Pharmacy Credit Facility, Hospital Loans
Just like the words of Anne Wilson Schaefer, good health is not something we can buy. However, it can be an extremely valuable savings account.
For over 128 years now, First Bank of Nigeria Limited has continued to positively impact the lives of its customers in all aspects, healthcare inclusive. In furtherance of its contribution to the health sector, especially in recent times of being amongst the corporate frontrunners in the fight against the covid-19 pandemic, FirstBank, notably known as Nigeria’s premier and leading financial inclusion service provider, recently joined the global community to commemorate the 2022 World Health Day.
World Health Day is a global health awareness day commemorated every year on the 7th of April to mark the founding of the World Health Organization (WHO) in 1948. The global body uses the opportunity to draw worldwide attention to a subject of major importance to global health.
Themed ‘Our planet, our health’, the 2022 edition is aimed at focusing global attention on the urgent actions needed to “keep humans and the planet healthy.”
The Bank’s impact on the health sector in Nigeria has been achieved through a variety of products specifically designed to meet the operational needs of practitioners and players in the health sector of the country. These products include: Pharmacy Credit Facility, Private Hospital Loan and Diagnostic Centre Loan.
According to the bank, the Pharmacy Credit Facility scheme targets indigenously owned Pharmaceutical shops. These shops have to be either owned or managed by Pharmacists who have valid operating licenses as pharmacists, possess valid premises licenses, and are registered members of the Pharmaceutical Council of Nigeria.
They are also expected to have been in existence for not less than 2 years. The purpose of the facility shall be for stock replacement purposes or working capital requirements. Also, all payments for the purchase of products will be made directly to the suppliers of the Pharmaceutical Shop.
On the other hand, the Private Hospital Loan provides a facility for indigenously owned private hospitals that are registered with a reputable HMO and have operated for a minimum of 5 years. The purpose of the facility shall be for working capital requirements of running the hospital or for procurement of equipment required for the day to day operations of the Hospital.
Also, the Diagnostic Centre Loan offers the facility for indigenously owned diagnostic centres that are registered with a reputable HMO and have operated for a minimum of 5 years. The purpose of the facility shall be for working capital requirements of running the diagnostic centre or for procurement of equipment required for their day to day operations.
Remarkably, the bank has been at the forefront when it comes to healthcare financing, leading its counterparts in the financial space. In the 2021 financial year, the bank disbursed a total of 2,931,070,000 in health financing.
From the year 2021 to date, the bank has disbursed a total of N5,657,999,000 in health financing, distributed strategically across pharmacies, hospitals and diagnostic centres.
Also worthy of note is the bank’s contribution towards Covid-19 awareness via its digital campaign, “Mask Up, Stay Safe”, which kicked off on 7th December 2020.
In that same 2020, Nigeria’s healthcare workers were not left out in the bank’s generosity, as all staff of FirstBank transformed the social media world and got many Nigerians to do the same, through their various Profile or Display Pictures, using unique photo messages dedicated to healthcare workers battling the coronavirus pandemic on the frontlines, with the hashtag #FirstBankSalutes.
In addition to this, a lot of philanthropists and organizations, including the bank itself, also donated various sums and healthcare equipment, beefing up the needed arsenal to combat the pandemic.
The bank, amongst many activities, stood tall, while also playing an active role in the public-private sector-driven initiatives which were contributory to combatting the coronavirus.
The bank had earlier emerged winner of the AfriSAFE Financial Sector Award 2019 for exemplary contribution to the improvement of health, safety, environment and well-being in Africa at the Africa Safety Award for Excellence.
First Bank of Nigeria Limited operates as a parent company in Nigeria, with subsidiaries ‘FBNBank’ in the Democratic Republic of Congo, Ghana, The Gambia, Guinea, Sierra-Leone and Senegal; FBN Bank (UK) Limited in London and Paris. The Bank also has a representative office in Beijing, China.
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