Ecobank Group records 10% profit in revenue for the first quarter of 2021

AFRICAEcobank Transnational Incorporated (ETI) has released its unaudited results for the first quarter (Q1) ended March 31, 2021, showing growth in key performance indicators.

The pan-African bank posted revenue of N214.3 billion (US$563.43m), showing an increase of 10 per cent from N194.860 billion (US$512.32m) recorded in the corresponding period of 2020.

Operating profit before impairment charges stood at N67 billion (US$176.15m) compared with N48.795 billion (US$128.29m) in 2020, which is 37 per cent higher.

The bank increased its impairment charges by 48 per cent from N15.454 billion (US$40.63m) to N22.799 billion (US$59.94m). As a result, profit before tax rose by 22 per cent to N40.343 billion (US$106.07m), from N33.026 billion (US$86.83m). Profit after tax grew by 23 per cent from N24.694 billion (US$64.92m) to N30.494 billion (US$80.17m).

A further analysis of the results showed that customers’ deposits stood at N7.378 trillion (US$19.40bn), up one per cent from N7.324 trillion (US$19.26bn), loans and advances printed at N3.644 trillion compared with N3.699 trillion (US$9.73bn). ETI ended the quarter with total assets of N10.433 trillion (US$27.43bn), up from N7.324 trillion (US$19.26bn).

According to analysts, the remarkable performance despite the global economic headwinds, could be traced to its digital platform and innovative products and services.

“We are focusing on achieving execution momentum in our payment business, the sustained reliability of all our platforms, driving increased adoption of our products and services, bringing our NPL ratio low and exceeding the expectations of our customers to truly be the pan-African Bank that Africa trusts,” Ecobank Group Chief Executive Officer, Ade Ayeyemi, said.

“These, together with all our investments and achievements to date, will enable us collectively grow revenues and generate long-term return of capital to our shareholders, despite the near- term challenges from COVID-19.”

Meanwhile, the stock market closed on negative note yesterday with the Nigerian Exchange (NGX) All-Share Index (ASI) shedding 0.04 per cent to be at 39,305.48. Similarly, market capitalisation shed N6.8 billion (US$17.88m) to close at N20.6 trillion (US$54.16bn). The decline followed losses in banking counters such as Guaranty Trust Bank Plc, Access Bank Plc and United Bank for Africa Plc.

The volume and value of trading fell 23.4 per cent and 13.9 per cent to 252.6 million shares and N1.8 billion respectively. The most traded stocks by volume were Access Bank Plc (57.2 million shares), Transcorp Plc (30.8 million shares) and Fidelity Bank Plc (29.4 million shares).

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