Ecobank Group, a leading pan-African banking institution, has released its half-year financial statement for 2023, showcasing robust performance despite facing challenging macroeconomic conditions.
CEO Jeremy Awori attributes the positive results to the company’s diversified business model, resilient balance sheet, and unwavering commitment to customer service.
Financial Highlights:
- Profit before tax witnessed a notable 18% increase, reaching $308 million. However, when excluding foreign currency translation effects, the growth surged to an impressive 67%.
- Net revenues experienced a substantial uptick of 14% to $1,037 million, indicating strong financial performance. Moreover, when adjusting for constant currency, the increase reached an impressive 38%.
- The return on tangible equity achieved an excellent 27%, reflecting the bank’s efficient use of capital and assets.
Second-Quarter Results:
- In the second quarter of 2023, Ecobank Group achieved a remarkable 63% increase in pre-tax profits, reaching N92.52 billion.
- This growth significantly contributed to the half-year profit before tax, which soared by 38% to N150.31 billion compared to N108.96 billion in the same period last year.
- Interest Income for the quarter reached N238.67 billion, demonstrating substantial growth from N161.09 billion in the corresponding quarter of 2022.
- Fees and Commission Income also exhibited strong performance, registering a 25% increase, totaling N71.01 billion, compared to N56.73 billion in the same period last year.
- Other Operating Income showed an exceptional surge of 262% to N13.07 billion, showcasing the bank’s ability to diversify revenue streams effectively.
- Impairment charges on loans and advances declined significantly by 34% to N17.93 billion from N27.02 billion, indicating improved credit quality.
- Loans and advances to customers grew impressively by 58%, reaching N8.03 trillion, highlighting Ecobank Group’s commitment to supporting businesses and individuals.
- Deposits from customers for the half-year ended 30th June 2023 increased to N14.71 trillion, reflecting customer confidence and trust in the bank’s services.
- Earnings Per Share witnessed substantial growth, increasing to N3.19 from N2.20, further enhancing shareholder value.
CEO’s Statement:
Commenting on the half-year financial results, Jeremy Awori expressed satisfaction with the bank’s achievements in the first six months of 2023. Despite the challenging macroeconomic conditions characterized by weaknesses in African currencies, high consumer prices, and tepid economic growth, Ecobank Group managed to deliver impressive financial performance.
Awori emphasized the bank’s commitment to its strategic roadmap, focusing on Growth, Transformation, and Returns. He expressed confidence in the bank’s growth opportunities, strengthened customer relationships, strategic partnerships, and ambitions to become a leading Payments bank.
In line with the Growth, Transformation, and Returns agenda, the CEO emphasized the importance of disciplined execution, proactive risk management, and customer-centricity. The bank’s prudent management of its balance sheet and capital allocation remains a top priority, along with continuous investment in best-in-class technology and talent.
Social Impact and Corporate Responsibility:
Awori also highlighted Ecobank Group’s contributions to the African communities where it operates. He expressed pride in the positive impact the bank and its employees have on customers’ lives daily.
Outlook:
With an optimistic outlook for the future, Ecobank Group aims to continue its growth trajectory by capitalizing on emerging opportunities, delivering exceptional customer experiences, and upholding its reputation as a leading financial institution in Africa
