H1 2022: Ecobank reports 24% growth in Profit Before Tax to $261m
By Philemon Adedeji
Ecobank group has reported 24 per cent growth in Profit Before Tax (PBT) to $261 million, according to its half year H1 unaudited results for the period ended 30 June, compared to $210 million reported in the prior-year period.
According to the group in a statement, if adjusted for impact of foreign currency translation (or at constant currency), Profit before tax moved higher by 53 per cent which was driven by positive operating leverage.
In addition, Profit before tax increased in each of its businesses lines with corporate and investment banking (CIB), consumer Banking (CSB) and Commercial Banking (CMB), growing their Profit Before Tax by 33 per cent, 43 per cent, and 15 per cent respectively in the half year H1 of 2022.
Net revenue (operating income) stood at the sum of $910 million, increasing by 10 per cent or 23 per cent at constant currency. The growth in revenue was driven by a 13 per cent growth in non-interest revenue and an 8 per cent growth in net interest income.
Profit made available to Ecobank Transnational Incorporated shareholders fund of $130 million was increased by 23 per cent and diluted Earnings per share of 0.53 US cents, rose significantly by 24 per cent.
In addition, each of our businesses grew revenue with corporate and investment banking (CIB) went up by 17 per cent, Customer Banking (CSB) went up by 11 per cent and Commercial Banking (CMB) went up by 10 per cent, reflecting growing success in our revenue expansion goals stated in our Execution Momentum) strategy overall, revenues benefitted from rising interest rates higher spreads on buying and selling currencies for client increased card spending and cash management-related fees.
Customer deposits increased by 3 per cent or 16 per cent at constant currency to $19.7 billion.
Record cost-to-income ratio of 56 per cent benefitted from higher revenue and stringest cost containment measures in an inflationary environment.
Gross customer loans increased by 6 per cent or 18 per cent at constant currency to $10.1 billion commercial bank loan growth was offset by lower CIB and customer bank loans.
Payments business grew by 23 per cent or $22 million to $119 million (13 per cent of group revenues), driven by merchant acquiring, cards businesses and wholesale payment.
CEO, Ecobank group, Ade Adeyemi said, “We delivered a return on tangible equity of 19.5 per cent, a record and increased earnings per share for shareholders by 24 per cent year-on-year.
“In addition Profit before tax increased by 24 per cent to $261 million and 53 per cent if you adjust the increase for the significant depreciation of some of our critical Africa currencies to the US dollar.
“We performed well because of our investments including in technology and Ecobankers’ continue dedication to meet customers financial needs despite a challenging operating environment of higher inflation weakening African currencies, worsening government fiscal balances and lowering economic growth.”
