Ecobank Transnational Incorporated (ETI) has reported a 176% increase in profit after tax, reaching N735.8 billion in 2024, up from N263.5 billion in 2023.
The bank’s latest financial statement showed commendable growth across key performance indicators, with a strong market position.
Revenue, as reported by Ecobank, surged 133% to N3.1 trillion, compared to N1.3 trillion the previous year.
Operating profit jumped 138%, reaching N1.4 trillion, while profit before tax climbed 160% to N980.7 billion, up from N376.5 billion.
Gross earnings also saw a sharp rise, growing 131% to N4.2 trillion, compared to N1.8 trillion in 2023.
The total assets of the bank also increased by 67% to N43.3 trillion, up from N25.9 trillion, while the total liabilities grew by 67%, to N40.5 trillion, rising from N24.2 trillion.
Customer deposits jumped by 66% to N31.6 trillion from N19 trillion, while loans and advances to customers increased by 53% to N15.3 trillion, from N10 trillion the previous year
Despite significant improvement across key performance indicators, Ecobank recorded a Loan-to-deposit ratio (LDR) of 48.5%, which is below the regulatory LDR of 50% mandated by the Central Bank of Nigeria (CBN) highlighting its cautious approach to lending.
This figure, which falls below the regulatory standard, shows that less than half of its deposits have been loaned out.
This highlights the company’s cautious approach to lending, but it could raise concerns about profitability in the long run, as loans represent a key revenue source for banks.
