Ecobank Reports $324m PBT in H1 2024

Samuel Mobolaji

Ecobank Group has posted a profit before tax of $324 million for the half year ended June 30, 2024.

The pan-African financial services Group released its H1 results on the Nigerian Exchange showing that profit before tax grew by five per cent to $324 million from $308 million in H1, 2023. However, the Group earnings per share declined by two per cent to $0.64 from $0.65 in H1, 2023.

The Group revenue grew by two per cent to $994 million as against $975 million in the corresponding period of 2023.

Group gross loans and advances stood at $10.205 billion in December 2023, compared to $11.112 billion in June 2023, while Group’s customer deposit amounted to $18.987 billion compared to $19.451 billion as of June 30, 2023.

Speaking on the results, CEO of Ecobank Group, Jeremy Awori said, “Our half-year results demonstrate the strength of our diversified business model. Despite facing macroeconomic challenges in some of our operating markets, the company increased its net revenues to $994 million and its profit before tax to $324 million.”

He explained that “excluding the impact of foreign currency translation due to US dollar strength, the profit before tax increased by 23 per cent. The return on tangible shareholder’s equity (ROTE) was 34.7 per cent, compared to 27 per cent in the previous year.”

Awori added, “Our results also highlighted the significant progress made in our GTR strategy, with double-digit revenue growth in constant currency across all our businesses; 14 per cent, 23 per cent, and 25 per cent in Corporate and Investment Banking, Commercial Banking and Consumer Banking, respectively. We gained share in trade services and observed increased client activity in wholesale payments and cards.”

He pointed out that, “our transformation agenda remains our top priority, with a focus on improving customer experience and driving efficiency and productivity. Despite persistent inflation, we achieved an efficiency ratio of 53.6 per cent.

“We continue to right-size our risk-weighted assets, and our deposits franchise remains strong. Customer deposits rose 13 per cent in constant currency to $19 billion, with current and savings accounts (CASA) comprising 81 per cent of total deposits. With a loans-to-deposit ratio of 54 per cent, we have room to take advantage of credit opportunities that meet our risk appetite if required.

“We have confidence in the company’s long-term prospects. While near-term monetary and fiscal challenges persist, our sole focus remains enhancing the customer experience and meeting their financial needs.”