Ecobank Grows Profit After Tax by 334% to N146.3 Billion in 2021

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.”