Ecobank Group posted a record profit before tax of $658 million for the full year 2024, a 13 percent year-on-year increase or 33 percent in constant currency despite operating in a highly challenging macroeconomic environment across its key African markets.
The pan-African banking group, which operates in 33 countries, recorded a net revenue of $2.1 billion, representing a modest 1 percent rise in actual terms and an 18 percent increase when adjusted for currency depreciation across African markets.
The performance was driven by strong fee and commission income, improved operational efficiency, and lower impairment charges on financial assets.
Profit after tax attributable to Ecobank Transnational Incorporated (ETI) shareholders rose by 16 percent to $333 million or by 45 percent in constant currency.
Earnings per share increased by 16 percent to 1.36 US cents while return on tangible equity reached an all-time high of 32.7 percent.
This reflects the strength of Ecobank’s business model and disciplined execution of its Growth, Transformation, and Returns (GTR) strategy.
Jeremy Awori, Chief Executive Officer of Ecobank Group, described the year as pivotal, noting that the bank maintained solid earnings and returns despite facing currency depreciation, inflationary pressures, rising interest rates, and tighter regulatory conditions, especially in Ghana, Nigeria, and Zimbabwe.
The group’s net interest income rose by 1 percent to $1.2 billion with a 19 percent increase in constant currency, driven by an expansion in net interest margins supported by lower funding costs and a deliberate shift towards a more favorable deposit mix.
Non-interest revenue climbed by 2 percent to $914 million, reflecting a 16 percent increase at constant currency, boosted by strong fees and commission income from cash management, trade, card payments, and cross-border transactions.
Corporate and Investment Banking contributed $1.1 billion to net revenue, up by 4 percent or 16 percent in constant currency. Commercial Banking generated $566 million, declining slightly by 1 percent in actual terms but increasing by 12 percent when adjusted for currency movements.
Consumer Banking delivered $504 million, representing a 4 percent decline or a 15 percent increase in constant currency.
Operational expenses declined marginally by 0.4 percent to $1.1 billion but rose by 17 percent in constant currency due to inflation and higher investment in technology, marketing, and administrative activities.
Despite these pressures, the cost-to-income ratio improved to 53.0 percent from 53.9 percent in the previous year, underscoring improved efficiency.
Pre-provision, pre-tax operating profit increased by 3 percent to $981 million, or 18 percent at constant currency, further highlighting Ecobank’s ability to manage costs while expanding revenue.
The bank’s deposit base increased by approximately $3 billion to $20.4 billion in constant currency, supported by a shift towards low-cost current and savings accounts.
This adjustment improved the CASA ratio to 86.4 percent and reduced the group’s funding costs.
Awori noted that Ecobank’s conservative approach to lending and liquidity management helped strengthen its capital adequacy ratio to 15.8 percent, well above regulatory thresholds.
He explained that Ecobank’s diversified footprint and leadership in cross-border payments, trade finance, and digital banking continue to offer a competitive edge.
“We are building a future-ready institution that will unlock more value for our shareholders, support clients, and drive inclusive growth across the continent,” Awori said.
Ecobank’s strong 2024 performance reinforces its position as one of Africa’s leading financial institutions, navigating economic headwinds while delivering sustainable growth and returns.
