In a recently released Audited Consolidated Financial Statements, Ecobank Group has showcased remarkable growth, reporting a 59% increase in gross earnings to N1.21tn at the end of September 2023, compared to N761.29bn in the same period of 2022. The results were filed with the Nigerian Exchange Limited on Thursday after a brief delay in the release of the Q3 financial results.
The delay was attributed to an external audit of the financial results, a decision taken by the Board and Management of Ecobank Transnational Incorporated. The audit revealed significant strides for the financial institution, with gross earnings surging in Naira value. However, it was noted that there was a 15% decline in US dollar terms to $2.084bn.
According to the Q3 results reported in both Nigerian Naira and United States dollars, Ecobank’s revenue (operating income) witnessed a substantial 12% increase to $1.518bn and a significant 55% rise to N884bn. The surge in revenue was attributed to various factors, including higher interest rates, growth in interest-earning assets, increased fees from treasury services and solutions, and higher cash management fees.
Non-interest revenues also saw a notable 29% increase, driven by client-driven foreign currency sales, cash management, and payments. A $20m one-off non-cash adjustment on loans previously sold to Nigeria’s Asset Management Corporation of Nigeria further contributed to boosting non-interest revenues.
Operating profit before impairment charges rose by 19% to $702m in US dollars and an impressive 64% to N409bn in Naira terms. Additionally, profit before tax increased by 55% to N262bn, while profit for the period appreciated by 56% to N182bn.
Ecobank’s Chief Executive Officer, Jeremy Awori, commented on the impressive results, stating, “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% on the back of a strong revenue growth of 34% in constant currency and an improved cost-to-income ratio of 53.7%.”
Awori emphasized that these results were achieved despite the challenging macroeconomic environment. He announced the completion of the Growth, Transformation, and Returns strategy, highlighting a customer-oriented approach, accelerated growth in Consumer and Commercial Banking, and increased investment in technology.
“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,” Awori said.
Ecobank’s total assets during the period also rose by 55% to N20.69tn, with loans and advances to customers up by 56% to N7.89tn and deposits from customers increasing by 56% to N14.93tn.
Despite economic challenges, Ecobank remains committed to its strategic focus areas, including consolidating achievements, scaling Payments, Remittances, and Fintech business, and supporting its Nigerian team for sustained growth.