Banking Sector

Ecobank Sees 196% Profit Increase in First Half of 2024

Published

1 month ago

August 12, 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.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Appointments

Keystone Bank Receives New Board Chairman, Directors From CBN

Published

12 hours ago

September 18, 2024

Bassey Marshall

It is the dawn of a new era for Keystone Bank, a top player in the Nigerian banking sector.

As part of a broader strategy to ensure sustained growth for Keystone Bank, the Central Bank of Nigeria (CBN) has approved a new chairman and board of directors for the financial institution.

The new board consists of a new board chairman, five non-executive directors, and two new directors, all carefully selected to take the bank to new heights.

The apex bank confirmed the latest development via a statement on Wednesday.

Steering the ship of leadership is Lady Ada Chukwudozie, as the new board chairman.

Lady Ada Chukwudozie, brings with her a truckload of experience.

A prominent figure in Nigeria’s corporate sector, Ada has nearly three decades of experience in business strategy, management, and administration.

Her expertise cuts across multiple industries, including De-Endy Industrial Company Limited, Dozzy Group, the Manufacturers Association of Nigeria, and Vogue Afrique Magazine.

Indeed, to whom much is given, much is expected.

With her extensive background and experience, Ada will now shoulder the responsibility of guiding the bank toward achieving its long-term goals.

The good news is that she is not alone. Joining her on the board are five non-executive directors, each bringing their unique skills to the table.

The five non-executive directors are Abdul-Rahman Esene, Mrs. Fola Akande, Akintola Ayodeji Olusoji, Obijiaku Samuel, and Senator Farouk Bello.

Together, they will play a critical role in shaping the future of the bank.

Furthermore, two new executive directors, Ladi Oluwole and Abubakar Usman Bello were also confirmed by the CBN.

Meanwhile, Keystone Bank’s Managing Director and CEO, Hassan Imam, bragged about his confidence in the new team.

To him, he was certain they would drive the bank’s growth and ensure reliable service for customers.

Imam noted that their wealth of experience would play a crucial role in the bank’s continued repositioning and growth.

His words: “We are pleased to welcome the new chairman, non-executive directors, and executive directors to the board of Keystone Bank.

We are confident that their extensive experience will be invaluable as we continue to reposition the bank to seize emerging economic opportunities while maintaining strong corporate governance and providing our customers with a secure and reliable banking experience,” Imam concluded.

Recall that in January, the CBN dissolved the board and management of Union Bank, Keystone Bank, and Polaris Bank.

Banking Sector

Zenith Bank Extends Public Offer and Rights Issue by Two Weeks

Published

1 week ago

September 10, 2024

Investors King

Zenith Bank Plc on Monday announced that it has obtained regulatory approval to extend its public offer and rights issue by two weeks.

In a statement released via the Nigerian Exchange Limited (NGX), the leading financial institution said its offers for both existing shareholders and new investors have been extended to September 23, 2024, from the initial closing date of September 9.

The bank attributed the extension to the nationwide protest that began on August 1, the same day the offers were opened.

Zenith Bank stated that the extension will provide shareholders with more opportunities to take advantage of the rights issue and allow the general public ample time to subscribe to the public offers.

Banking Sector

Unity Bank Projects N27b In Q4 Earnings, Targets N4b Profit

Published

1 week ago

September 10, 2024

Investors King

Unity Bank Plc has projected gross earnings of N27 billion and a Profit After Tax of N4 billion in Q4, 2024, in its latest earnings forecast released to the Nigerian Exchange Group.

Although the projected gross earnings represent a marginal increase from the N26 billion projected for Q3 2024, the lender continues to maintain a profitable outlook, with pre-tax profit expected at N4.2 billion.

An analysis of the earnings forecast shows that the lender also expects interest income to rise from N23 billion to N24.5 billion, with net revenue expected to rise marginally by 1.0% to N7.2 billion within the quarter compared to N6.5 billion in Q3, 2024.

Net operating income is projected at N12 billion, while cash flow from financing activities is projected to rise to N481.4 billion from N353.6 billion, a 1.3% projected increase on a quarter-on-quarter basis. This projected growth in cash flow from financing activities continues to reflect the lender’s growing liquidity position which is essential for sustained business operations.

The lender said it expects to cover the milestones with a consistent optimistic outlook in its projection, barring any significant changes in the operating environment, under which the assumptions were made.

The lender noted that it will continue to deliver top-notch customer-centric products and services, especially in the digital lending space following the roll-out of enhanced platforms and channels for superlative customer experiences.

Analysts are of the view that the Q4 forecast reflects a steady growth trajectory on the back of key performance indicators and strategic repositioning to hedge the challenging market conditions.