Ecobank Sees 196% Profit Increase in First Half of 2024

Ecobank Transnational Incorporated has reported profit after tax of N311 billion for the first half of 2024, representing a 96% increase from the N105 billion recorded during the same period in 2023.

This growth reflects the bank’s strategic focus on increasing revenue streams and managing operational efficiency amidst a challenging economic environment.

The bank’s performance report showed revenue surged by 186% to N1.36 trillion, compared to N475.65 billion in the first half of 2023.

This growth was driven by both higher interest income and non-interest revenue, underscoring the effectiveness of Ecobank’s diversified business model.

Operating profit before impairment charges soared by 215% to N631.5 billion, up from N200.77 billion in the previous year.

This was attributed to robust growth in both interest and non-interest income, showcasing the bank’s ability to leverage market opportunities and optimize its financial performance.

Income for the first half of 2024 surged by 175% to N1.23 trillion, driven by higher yields on loans and advances, as well as investment securities.

The bank also reported a substantial increase in fee and commission income, which grew by 186% to N384.1 billion, up from N134.38 billion in the previous year.

This growth was supported by increased transaction volumes and enhanced service offerings, further solidifying Ecobank’s position in the financial services sector.

Despite the overall strong performance, the bank experienced a 20% decline in trading income and foreign exchange gains, which fell to N230.31 billion from N209.45 billion in the previous year.

Also, Ecobank recorded a net investment income loss of N941.51 million, compared to a gain of N2.27 billion in the first half of 2023.

Operating expenses also saw a significant rise, increasing by 165% to N728.73 billion, up from N274.88 billion in the previous year.

This increase was largely due to higher staff costs and depreciation, reflecting the bank’s investment in human resources and infrastructure to support its growth trajectory.

Impairment charges on financial assets surged by 273% to N188 billion, compared to N50.46 billion in the same period last year.

This increase was attributed to heightened credit risk and cautious provisioning, as the bank navigates a volatile economic landscape.

Tax expenses rose by 194% to N132.49 billion, up from N45.09 billion in the previous year, in line with the higher profit before tax.

The rise in customer deposits and investment securities also pushed Ecobank’s total assets up by 49% to N38.6 trillion as of June 2024, from N25.92 trillion in December 2023.

However, the bank’s total equity decreased by 13% to N2.25 trillion, down from N1.65 trillion at the end of 2023, due to exchange rate fluctuations that affected retained earnings and reserves.

Despite this, earnings per share saw a significant increase of 175% to 878 kobo, up from 319 kobo in the first half of 2023.