Ecobank Group reported a 26% year-on-year increase in profit after tax from N30.494 billion recorded in the first quarter (Q1) of 2021 to N38.324 billion in the first quarter ended March 31, 2022, the pan-Africa lender disclosed in its unaudited financial statement obtained by Investors King on Monday.
Gross earnings rose by 15% to N245.4 billion in the period under review. While revenue increased to N181.5 billion, an increase of 10% from N164.636 billion was achieved in the corresponding period of 2021.
Similarly, operating profit before impairment charges grew to N76.2 billion, a 14% increase from N67.009 billion reported in Q1 2021.
Profit before tax also appreciated by 29% to N52.1 billion in the period under review. See other details below.
Ecobank Group financial highlights for 2022 first quarter
– Gross earnings up 11% $589.5 million (up 15% to NGN 245.4 billion)
– Revenue up 7% to $436.1 million (up 10% to NGN 181.5 billion)
– Operating income before impairment losses up 10% to $183.1 million (up 14% to NGN 76.2 billion)
– Profit before tax up 25% to $125.1 million (up 29% to NGN 52.1 billion)
– Profit after tax up 21% to $92.1 million (up 26% to NGN 38.3 billion)
– Total assets down 2% to $27.1 billion (down 4% to NGN 11,265.4 billion)
– Loans and advances to customers down 3% to $9.3 billion (down 5% to NGN 3,873.9 billion)
– Deposits from customers stable at $19.7 billion (down 2% to NGN 8,195.2 billion)
– Total equity down 2% to $2.1 billion (down 4% to NGN 881.3 billion)
Commenting on the Group performance, Ade Ayeyemi, CEO of Ecobank Group, said “We delivered strong 1Q 2022 results with profit before tax increasing by 25% to $125 million, diluted earnings per share up 29% to 0.27 US cents and net revenue growth of 7% to $436 million. Returns on tangible shareholders’ equity of 18.9% was a record compared to 15.7% a year ago.”
Ayeyemi continued: “We achieved these results in a difficult operating environment characterised by the strengthening of the US dollar against our operating currencies, high inflation, high interest rates and tight labour markets across Africa as the Russia-Ukraine conflict continued to take its toll. Despite these challenges, we continued to support our customers effectively, which paid off as our businesses grew their revenues and profits.
“These were driven by trade, cash management, FICC and payments, while we also achieved modest loan growth with support from higher interest rates. As a result, pre-tax profits increased by 13%, 26% and 59% in our Corporate and Investment Banking, Consumer Banking and Commercial Banking businesses respectively. It is important to note that it is the bold strategic decisions and our investments in people, systems and processes over time that have resulted in the record returns for our shareholders today. We are unrelenting in our focus on driving returns towards our medium-term goal of approximately 20%.”
“We have continued to run the company with expense discipline, while growing earnings and investing in improvements to the customer experience. So, despite increased expenses – largely due to inflation – our cost-to-income ratio improved to 58.0%, compared to 59.3% a year ago. Our credit portfolio is in good shape, and we continue to drive down the non-performing loans ratio towards our near-term goal of under 6% while we maintain adequate impairment reserves as a buffer for possible downside risks.”
“We have ample liquidity on our balance sheet and continue to generate healthy levels of customer deposits while maintaining satisfactory levels of capital above internal and regulatory minimums. As a result, we are confident in the company’s positioning for growth, and will continue to invest in our digital offerings and payment capabilities while enhancing our core technology. In summary, we are pleased with our progress, and I would like to thank our
customers for their trust, and all Ecobankers for their hard work towards realising our vision and remaining the bank that Africa and friends of Africa trust.” Ayeyemi concluded.
