Ecobank’s Profit After Tax Grows to $407m in 2023

Ecobank Transnational Incorporated (ETI) has reported a $407 million profit after tax for the 2023 financial year.

This represents an 11% increase from the $367 million reported for the year 2022 and reflects the pan-African banking group’s continued growth trajectory amidst challenging economic conditions.

The financial results, filed with the Nigerian Exchange Limited on Tuesday, showcased Ecobank’s robust performance despite the headwinds posed by higher inflation, interest rates, and currency depreciation across Africa.

The group’s profit before tax also rose by 8% or 34% when adjusted for foreign currency translation effects to $581 million.

According to Ecobank, the growth in profit was primarily driven by revenue outpacing expense growth, resulting in positive operating leverage.

The group’s pre-provision, pre-tax operating profit hit $951 million in the year under review, representing a 17% increase from the previous year.

Commenting on the financial results, Jeremy Awori, CEO of Ecobank Group, acknowledged the challenges faced by households, businesses, and governments across Africa in 2023.

Despite the economic uncertainties, Awori declared Ecobank’s unwavering commitment to its customers and stakeholders.

Awori stated, “Ecobank generated a return on tangible shareholders’ equity of 24.9% despite the challenging operating environment in 2023.”

Net revenue exceeded $2.0 billion for the first time since 2015, reaching $2.1 billion, underscoring the efficacy of Ecobank’s 5-year growth, Transformation, and Returns strategy.

The CEO attributed Ecobank’s encouraging results to its customer-centric approach and initiatives aimed at revenue diversification, growth, and low-cost deposit mobilization.

The consumer and commercial banking businesses witnessed an increase in their share of group-wide revenues and profits, indicating progress in strategic objectives.

However, amidst the overall positive performance, Ecobank’s Nigerian operations faced challenges, with profit before tax declining to $27 million in 2023 from $31 million in 2022, representing a 15% decrease.

The challenging operating environment in Nigeria, characterized by high inflation and currency depreciation, impacted the performance of the Nigerian segment.

Looking ahead, Ecobank remains committed to its strategic agenda, which emphasizes technology-driven innovation, revenue diversification, and cost management.

The group’s focus on disciplined cost management aims to redirect savings into investments in marketing, sales capabilities, and technology, driving sustainable returns in the future.

As shareholders approved a N10 billion rights issue, Ecobank is well-positioned to capitalize on emerging opportunities and navigate evolving market dynamics.

With a resilient performance in 2023, Ecobank reaffirms its commitment to driving growth, delivering value to shareholders, and advancing financial inclusion across Africa.