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Ecobank Reports 15% Growth in Profit in H1 2022

Ecobank, one Africa’s leading lenders, grew gross earnings by 15% in the first half (H1) of 2022, according to the bank’s latest unaudited financial statement accessed by Investors King.

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Ecobank, one Africa’s leading lenders, grew gross earnings by 15% in the first half (H1) of 2022, according to the bank’s latest unaudited financial statement accessed by Investors King.

Gross earnings rose from N439.490 billion recorded in the first half of 2021 to N503.633 billion in the period under review.

Revenue also expanded by 13% to N379.348 billion, up from N334.882 billion filed in H1 2021. The growth was broad-based as operating profit before impairment charges advanced by 21% to N167.033 billion from N138.265 billion in H1 2021.

Profit before tax jumped 28% from N85.324 billion to N108.956 billion in the first half of 2022. Profit for the period stood at N77.313 billion, an increase of 24% from N62.553 billion achieved in H1 2021.

However, the bank’s total assets depreciated by 2% to N11.414 trillion from N11.689 trillion in H1 2021.

Similarly, loans and advances to customers declined by 3% to N3.939 trillion, down from N4.061 trillion. Deposits from customers also declined by 1% to N8.319 trillion.

Total equity dipped by 10% from N917.903 billion in H1 2021 to N823.236 billion.

Commenting on the sound performance, Ade Ayeyemi, CEO of Ecobank Group, said our results for the first six months of 2022 reflect not only the benefits of the firm’s diversification but also our resilience and capabilities to continue serving our clients and customers in a challenging environment and still generate adequate returns responsibly for our shareholders. As a result, we delivered a return on tangible equity of 19.5%, a record, and increased earnings per share for shareholders by 24% year-on-year.

In addition, profit before tax increased by 24% to $261 million and by 53% if you adjust the increase for the significant depreciation of some of our critical African currencies to the US dollar, says Ade Ayeyemi, CEO, Ecobank Group.

Ayeyemi continued: “We performed well because of our investments, including in technology, and Ecobankers’ continued dedication to meet customers’ financial needs, despite a challenging operating environment of high inflation, weakening African currencies, worsening government fiscal balances and lowering economic growth. In our Consumer Banking business, pre-tax profits increased 43% on higher deposit margins, loans, and debit card spending.

In Corporate and Investment Banking, profits rose 33%, as we gained share in the letters of credit market, payment volumes increased by 43% on Omniplus, and FX volumes grew by 25% as client activity rebounded from the pandemic. In addition, an increase in SME activity and growth in the payment business lifted profits in Commercial Banking by 15%.”

“Our investments in technology and digital capabilities have contributed to a reduction in our cost-to-serve. Along with revenue growth, the outcome is our record cost-to-income ratio of 56%. In addition, we increased impairment charges to reflect heightened credit risks. More importantly, we have proactively built central impairment reserves of $206 million, which we can deploy in a stressed credit environment. At the same time, our balance sheet remains liquid and adequately capitalised, providing us the capacity to serve our customers better.”

“Our service to our customers and communities, anchored on our vision to advance Africa’s economic development and financial integration, is widely recognised. Recently, Euromoney adjudged Ecobank for 2022 – Africa’s Best Bank, Africa’s Best Digital Bank and Africa’s Best Bank for SMEs. These accolades are a testament to our passion for serving clients and customers and our continued investments in technology, processes, and people. I am extremely proud of my colleague Ecobankers and thank them for their diligence. As always, we are passionately working towards realising our vision and remaining the bank that Africa and friends of Africa trust.” Ayeyemi concluded.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Finance

FMAN Elects New Excos as Coronation Asset M.D, Aig-Imoukhuede Emerges as President

FMAN has elected the Managing Director of Coronation Asset Management Limited, Mr. Aigbovbioise Aig-Imoukhuede as the new President-elect of the association.

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Finance

Fintech CEO: Rate Hikes & Inflation Spell Different Reality than Stock Market

Since its low in June, the S&P has seen a bump of 18%, while the NASDAQ has risen roughly 20%

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Since its low in June, the S&P has seen a bump of 18%, while the NASDAQ has risen roughly 20%. This week, both Morgan Stanley and BlackRock analysts have noted that the recent bounce likely won’t continue. One Fintech exec, who has been sounding the warning bells on the economy for the better part of the past year, speaks on the current state of affairs.

“As soon as we saw the trajectory of the pandemic-related spending bills, anybody with basic economic knowledge knew that inflation was going to be a concern. What most didn’t anticipate was the land war in Eastern Europe that only exacerbated energy costs and supply chain issues,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

“As inflation, which was nudged higher by pandemic-related supply chain shortages which still haven’t fully abated, began to affect household budgets, it was clear that rate hikes were coming. The 75 basis point hikes were historic, but all indicators show that additional increases will be necessary. The increases are only starting to ripple across the economy,” said Gardner.

“There was some excitement over July’s CPI, but the reality is that this economy isn’t back on track. The excitement and celebration is a bit too soon, and I think the fundamentals still show that. Given the market’s recent boon, I think you’re starting to see an influx of FOMO, and that’s not painting the full picture,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“Right now could be a great time for companies to work on new projects and get them ready to bring to market. It is a great time for R&D, and, for the companies that planned for this economic upheaval, it is a time to poach top talent that find themselves laid-off. In particular, it is a great time for startups that just completed a major funding round. They’ll have the financial resources to weather the storm while competitors may begin to struggle with liquidity,” said Gardner.

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Banking Sector

FirstBank Commemorates 2022 International Youth Day, Dedicating the Week to Celebrating the Youth

First Bank of Nigeria Limited has announced its commemoration of the 2022 International Youth Day, globally celebrated today, 12 August 2022.

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FirstBank Headquarter - Investors King

First Bank of Nigeria Limited has announced its commemoration of the 2022 International Youth Day, globally celebrated today, 12 August 2022 and themed “Intergenerational solidarity: Creating a World for All Ages.” 

The International Youth Day is commemorated every year on 12 August, bringing youth issues to the attention of the international community and celebrating the potential of youth as partners in today’s global society. The Day also amplifies the message that action is needed across all generations to achieve the United Nations Sustainable Development Goals (SDGs) and leave no one behind.

Leading up to the day, the Bank dedicated the week of 8 – 12 August with a lineup of activities to reiterate its commitment to Youth Empowerment.

As a Bank renowned for its role in developing the economy through sustainable employment and entrepreneurship endeavours, the 2022 edition of the Youth Week will promote economic empowerment and employment, digital technology, and education as its focus during the celebration.

The Youth Week comprises various activities, including a Fashion illustration workshop, Design skill training, Gen Z/Millennial Webinar and many more exciting activities. These activities would give participants opportunities to win various exciting gift items.

Under the First@arts program, the Bank will empower the youths through Artistry Workshop Sessions & Arts Classes. Interested in the art of fashion design and illustrations, visit the Bank’s social media handles – Instagram: @firstbanknigeria, Facebook: First Bank of Nigeria Limited, Twitter: @FirstBankngr – for information on how you can be among 10 lucky winners to have the opportunity to learn the business of fashion at Claire Idera fashion studio.

Likewise, the Creative design workshop will enable youths design skill training; design thinking principles and their application in the context of layout, typefaces and colour. Interested youths can also participate on the FirstBank social media handles, where 25 lucky winners will be selected to learn the Art of Design at Geneza School of Designs.

Commemorating the Youth Week, Dr Adesola Adeduntan, Chief Executive Officer of FirstBank said: ‘’We remain committed to celebrating the younger demography whose voices, actions, vigour, and tireless participation in the political, economic, and social activities have continued to birth major contributions towards the sustainable development of Africa and the world at large. The planned activities will promote better collaboration and solidarity across generations to foster successful and equitable relationships, and partnerships thereby ensuring “no one is left behind” and empowering everyone to leverage their full potential toward achieving the much-desired Sustainable Development Goals (SDGs).

This Youth demography has a striking significance for us at FirstBank with the Millennials and Gen Zs constituting almost 60% of our workforce. This shows that youths are an integral part of our organisation and every country where we operate”, he concluded.

For more information and participation in the Youth Week, kindly visit the bank’s verified social media platforms; Instagram: @firstbanknigeria, Facebook: First Bank of Nigeria Limited, Twitter: @FirstBankngr

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