Ecobank Group grew its gross earnings by 59 per cent to N1.21tn at the end of September 2023 from N761.29bn as of the same period in 2022.
This was indicated in the Audited Consolidated Financial Statements For the period ended 30 September 2023 filed with the Nigerian Exchange Limited on Thursday.
Ecobank had delayed the filling of its Q3 financial results over the external audit of the results for the period. In the notice on the delay filed with the NGX, the Board and Management of Ecobank Transnational Incorporated said that it decided to undergo an audit of the 2023 Third Quarter Financial Results of the Ecobank Group.
In the Q3 results, which were reported in both the Nigerian Naira and United States of American dollars, the financial institution said that while its gross earnings went up in Naira value, it was down by 15 per cent in US dollar terms to $2.084bn. Its revenue (operating income) rose by 12 per cent to $1.518bn and up 55 per cent to N884bn.
The financial institution said that the increase in revenue was driven by the net impact of higher interest rates, particularly in Anglophone West Africa and Nigeria, growth in the volume of interest-earning assets, significantly higher fees from treasury services and solutions, and higher cash management fees.
Non-interest revenues increased by 29 per cent primarily on the back of client-driven foreign currency sales, cash management and payments. Helping also to boost non-interest revenues was a $20m one-off non-cash adjustment on loans that Ecobank Nigeria previously sold to Nigeria’s Asset Management Corporation of Nigeria.
Its operating profit before impairment charges went up in both currencies. It went up by 19 per cent to $702m and up by 64 per cent to N409bn.
In Naira terms, Profit before tax rose by 55 per cent to N262bn and Profit for the period up appreciated by 56 per cent to N182bn.
Ecobank’s total assets during the period also rose by 55 per cent to N20.69tn with loans and advances to customers up by 56 per cent to N7.89tn from N5.07tn as of September 2022. Similarly, Deposits from customers increased by 56 per cent to N14.93tn .
Commenting on the results of the company at the end of Q3, the Chief Executive Offier of Ecobank Group, Jeremy Awori, said, “Ecobank generated profit before tax of $450m for the nine months to September. Moreover, we delivered profits attributable to ETI shareholders of $224m, which translated to a return on tangible shareholders’ equity of 25.6 per cent on the back of a strong revenue growth of 34 per cent in constant currency and an improved cost-to-income ratio of 53.7 per cent.”
Awori said that the group’s results were achieved despite the challenging macroeconomic environment.
“I am pleased to announce that we have completed our Growth, Transformation and Returns strategy. True customer orientation is the core of our GTR strategy, meaning we will always focus our energies and resources on delivering great products and services. As part of our broad strategic focus areas, we are accelerating the growth of our Consumer and Commercial Banking businesses given the significant revenue opportunities, diversifying and growing our Corporate and Investment Banking revenue streams, and consolidating our achievements, experience and market recognition to scale our Payments, Remittances and Fintech business. Additionally, we will entrench our leadership positions in markets where we are a top three bank, address subscale markets, and provide unwavering support to our Nigerian team as they turn around and further grow their business,” he said.
Awori revealed that the group would be increasing investment in technology, saying, “We will invest further in technology, in all its forms, to provide better, faster, and easier services to our customers. Furthermore, we are investing in building our brand to create greater connection and support our growth businesses.Ultimately, the foundation for success rests on the passion and dedication of Ecobankers to consistently deliver for clients and customers no matter the environment, unified by our shared cultural and ethical values. Accordingly, we have made it our priority to invest in providing the enabling environment and resources to inspire creativity, innovation and discipline in execution.”
Ecobank is operational in 35 African countries, has a subsidiary in France and has representative offices in Dubai-United Arab Emirates, London-UK, Beijing-China, Johannesburg, South Africa, and Addis Ababa, Ethiopia.