Q3 2024: Ecobank reports N265.029bn pre-tax profit
Ecobank Plc has reported its 2024 third-quarter results showing pre-tax profits grew by 136.94 percent year on year, reaching N265.029 billion.
These results brought the bank’s nine-month 2024 pre-tax profit to N708.542 billion, compared to N262.171 billion for the same period last year, a YoY increase of 170.26 percent.
Ecobank’s stellar Q3 performance reflects strong growth across both the interest and non-interest income segments.
Interest income rose by 95.43 percent YoY, driven primarily by higher interest rates and the bank’s growing loan portfolio, with loans and advances to customers increasing by 61.95 percent.
Over nine months, Ecobank generated N1.146 trillion in total interest income, with 59% of it derived from loans and advances to both customers and other financial institutions.
However, net interest income’s contribution to operating income dropped by 4.56% to 56.17 percent, as interest expenses increased by 104.25 percent, outpacing the growth in interest income.
This was likely due to higher funding costs, reflecting the bank’s aggressive lending and deposit mobilisation activities.
The shift in income structure was offset by the impressive growth in non-interest income, which now accounts for 44% of operating revenue, a 6.52 percent increase
Non-interest income benefited from a surge in net fees and commission income (up 139.91 percent), driven by cash management services and related transaction fees.
Another key driver of profitability was the foreign exchange trading gain of N314.360 billion reported over the nine months of 2024, compared to a loss of N68.285 billion in the same period last year.
Despite the 119.84 percent increase in operating expenses, Ecobank’s operating profit before impairments grew by 78.70 percent YoY to N344.967 billion.
Additionally, impairment charges on financial assets declined marginally by 1.54 percent, further supporting the bottom line.
Ecobank Nigeria contributed 62.54 percent of the group’s post-tax profit in reported currency.
For the nine months of 2024, the Nigerian region’s post-tax profit surged 165 percent year-on-year (YoY) to N307.640 billion, reflecting strong growth compared to the same period last year.
Ecobank’s nine-month profit after tax reached N491.879 billion, representing a 168.90 percent YoY increase, positioning the bank for strong full-year results.
This exceptional performance, coupled with the growth in non-interest income and a return to FX gains, is likely to enhance investor confidence.
Ecobank’s shares have already reflected a positive sentiment, with a year-to-date (YtD) gain of 15.79 percent, making it the 6th best-performing banking stock on the Nigerian Exchange. This follows a 97 percent YtD return in 2023.
