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Ecobank’s pre-tax profit grows 249% to N202 billion in Q1 2024

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Ecobank’s pre-tax profit grows 249% to N202 billion in Q1 2024

Ecobank’s pre-tax profit grows 249% to N202 billion in Q1 2024

Ecobank Transnational Incorporated (ETI) posted a pre-tax profit of N201.5 billion during the quarter ending March 31, 2024. This marks a 249% year-on-year growth from the N57.7 billion posted during the corresponding quarter in 2023.

The banking group, which is listed on both the Nigerian Exchange (NGX) and the West African Economic and Monetary Union (UEMOA) released its financial statements in Nigerian Naira (NGN) and the US Dollar (USD). In USD terms, the group’s pre-tax profit grew to $150 million in Q1 2024, marking a 20% YoY growth from the $125.1 million posted in Q1 2023.

In Q1 2024, ETI hit a whopping N904.2 billion in gross earnings, marking a 193% YoY growth from N308.1 billion gross earnings posted in Q1 2023. However, in USD terms, there was a marginal 1% YoY growth in gross earnings to $673.9 million from $668 million in Q1 2023.

Key Highlights Q1 2024 vs Q1 2023
Gross earnings: N904.2 billion, +193% YoY
Interest income: N608.3 billion, +194% YoY
Interest expense: N220 billion, +160% YoY
Net interest income: N388.4 billion, +217% YoY
Non-interest revenue: N277.1 billion, +191% YoY
Operating income: N665.4 billion, +205% YoY
Operating expenses: N358 billion, +181% YoY
Operating profit: N307.5 billion, +241% YoY
Impairment charges on financial assets: N106 billion, -226% YoY
Profit before tax: N201.5 billion, +249% YoY
Profit after tax: N140.9 billion, +249% YoY
Earnings per share: 374.740 kobo, +218% YoY
Total assets: N34.6 trillion, +33% YtD
Loans and advances to customers: N12.7 trillion, +27% YTD
Loans and advances to banks: N3.10 trillion, +45.5% YTD
Commentary
The group’s gross earnings during the quarter were majorly driven by the 194.3% YoY growth in interest income to N608.3 billion, from N207.2 billion as of Q1 2023. In USD terms, the group’s interest income hit $453.4 million during the quarter, marking a 1% growth from the $449.3 million posted in Q1 2023.

Despite growing by 33% in NGN terms during the quarter to N34.7 trillion, the group’s total assets declined by 3% to $26.5 billion from $27.2 billion at the start of the year. This massive distortion was caused by the 27% devaluation in the Naira from N952/$ as of January 1, 2024, to N1304/$ as of March 31, 2024.

Ecobank Nigeria’s Q1 2024 performance
During the quarter, Nigeria was the least contributing geographical segment of the business. Ecobank Nigeria generated a net interest income of N30.7 billion in Q1 2024, compared with N147.3 billion generated in Anglophone West Africa (Ghana, Liberia, Sierra Leone, Gambia, and Guinea). Ecobank generated N133.7 billion in net interest income from the UEMOA region, and N118 billion from the Central, Eastern, and Southern Africa (CESA) region.

Ecobank Nigeria is also the least contributor to the total assets of the group. It currently contributes a total asset of N4.8 trillion, representing 14% of the group’s total assets. In contrast, Ecobank UEMOA contributes 39% of the group’s total assets with N13.5 trillion. While Ecobank AWA contributes 19% of group’s total assets with N6.6 trillion.

The bank in Nigeria generated a pre-tax profit of N5 billion in Q1 2023, marking a 51% YoY growth from the N3.3 billion posted in Q1 2023.

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