Ecobank has reported a strong financial performance for the first half of 2023. According to its latest financial statement, Net revenue for the bank reached $1037 million, marking a commendable 14% rise from the previous year, and an even more impressive 38% growth in constant currency terms. The bank recorded a profit before tax of $308 million, reflecting an 18% increase from the same period last year. Diluted earnings per share (EPS) stood at 0.65 US cents, indicating a significant 23% growth year-on-year.
The bank’s Return on Tangible Equity (ROTE) reached an impressive 27.0%, showcasing its efficient capital allocation and operational effectiveness. The Cost-to-Income (CIR) ratio remained strong at 54.3%, demonstrating the bank’s commitment to cost management.
Furthermore, the bank reported stable credit quality, with the Non-Performing Loan (NPL) ratio at 5.5% and the Cost-of-Risk at 0.71%. This indicates the bank’s ability to maintain healthy asset quality despite the challenging macroeconomic conditions in the region.
Jeremy Awori, the CEO of Ecobank Group, expressed his satisfaction with the bank’s performance, attributing it to their diversified business model, resilient balance sheet, and commitment to customer service. He highlighted the bank’s robust revenue growth and a positive return on tangible equity.
Awori also shared the bank’s strategic roadmap, emphasizing the focus on customer relationships, strategic partnerships, and becoming the go-to payments bank by leveraging their superior platforms. He further stressed the importance of discipline in execution, proactive risk management, and customer-centricity in achieving the bank’s growth objectives.
The bank’s income statement revealed that net interest income reached $547 million, with a net interest margin of 4.9%. Non-interest revenue saw strong growth, increasing by 18% to $490 million. Operating expenses stood at $563 million, rising by 11%, mainly driven by inflationary costs and increased staff compensation.
Despite ongoing challenging macroeconomic conditions, Ecobank remains confident in its growth opportunities. The bank continues to invest in best-in-class technology, talent retention, and culture reinforcement.
Ecobank’s commitment to supporting African communities and the positive impact of its services on customers were also acknowledged by Awori.
Overall, Ecobank’s half-year financial report demonstrates the bank’s resilience, efficiency, and stability, positioning it as a key player in the African financial landscape and a bank to watch in the region’s banking sector.