By the end of September 2023, Ecobank Group’s gross earnings had increased by 59% to N1.21tn from N761.29bn during the same time in 2022. The Audited Consolidated Financial Statements for the period ending September 30, 2023, which were submitted to the Nigerian Exchange Limited on Thursday, made reference to this.
Due to an external audit of its Q3 financial results, Ecobank had to postpone filing its financial reports. The Board and Management of Ecobank Transnational Incorporated announced their decision to conduct an audit of the Ecobank Group’s third-quarter financial results in 2023 in the notice of delay that was submitted with the NGX.
The banking institution stated in its Q3 results, which were released in US dollars and Nigerian Naira, that although its total earnings increased in Naira, they decreased by 15% to $2.084 billion in US dollars. Operational income, or revenue, increased by 12% to $1.518 billion and by 55% to N884 billion.
The financial institution stated that the rise in interest rates, especially in Nigeria and Anglophone West Africa, growth in the amount of interest-earning assets, noticeably higher fees from treasury services and solutions, and higher cash management fees were the main causes of the revenue increase.
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.”
