ETI Announces N108.96bn PBT in H1 2022

Kayode Tokede

Ecobank Transnational Incorporated (ETI) yesterday announced half year (H1) unaudited financial statement for the period ended June 30, 2022 with 28 per cent increase in profit before tax to N108.96billion from N85.32billion reported in corresponding H1 2021 results.

The pan-African bank on the Nigerian Exchange Limited (NGX) also reported 24 per cent increase in profit to N77.31billion in H1 2022 as against N62.55billion reported in prior H1 2021.

ETI’s profits growth was driven by 15 per cent increase in gross earnings to N503.6billion in H1 2022 from N439.49billion reported in H1 2021.

However, its balance sheet position performance plummet with total assets dropping by two per cent to N11.41trillion as of June 30, 2022 as against N11.69 trillion reported in full year ended December 31, 2021.

Loans & advances dropped by three per cent to N3.94trillion as of June 30, 2022 from N4.06trillion in 2021, while customers deposit went down by one per cent to N8.32trillion as of June 30, 2022 from N8.36trillion reported in full financial year ended December 31, 2021.

The CEO, Ecobank Group, Ade Ayeyemi in a statement said, “Our results for the first six months of 2022 reflect not only the benefits of the firm’s diversification but also our resilience and capabilities to continue serving our clients and customers in a challenging environment and still generate adequate returns responsibly for our shareholders.

“As a result, we delivered a return on tangible equity of 19.5per cent, a record, and increased earnings per share for shareholders by 24 per cent year-on-year. In addition, profit before tax increased by 24per cent to $261 million and by 53 per cent if you adjust the increase for the significant depreciation of some of our critical African currencies to the US dollar.”

According to him, “We performed well because of our investments, including in technology, and Ecobankers’ continued dedication to meet customers’ financial needs, despite a challenging operating environment of high inflation, weakening African currencies, worsening government fiscal balances and lowering economic growth. In our Consumer Banking business, pre-tax profits increased 43% on higher deposit margins, loans, and debit card spending. In Corporate and Investment Banking, profits rose 33per cent, as we gained share in the letters of credit market, payment volumes increased by 43per cent on Omniplus, and FX volumes grew by 25per cent as client activity rebounded from the pandemic. In addition, an increase in SME activity and growth in the payment business lifted profits in Commercial Banking by 15per cent.”

“Our investments in technology and digital capabilities have contributed to a reduction in our cost-to-serve. Along with revenue growth, the outcome is our record cost-to-income ratio of 56%. In addition, we increased impairment charges to reflect heightened credit risks. More importantly, we have proactively built central impairment reserves of $206 million, which we can deploy in a stressed credit environment. At the same time, our balance sheet remains liquid and adequately capitalised, providing us the capacity to serve our customers better.”

He added that, “Our service to our customers and communities, anchored on our vision to advance Africa’s economic development and financial integration, is widely recognised. Recently, Euromoney adjudged Ecobank for 2022 – Africa’s Best Bank, Africa’s Best Digital Bank and Africa’s Best Bank for SMEs. These accolades are a testament to our passion for serving clients and customers and our continued investments in technology, processes, and people. I am extremely proud of my colleague Ecobankers and thank them for their diligence. As always, we are passionately working towards realising our vision and remaining the bank that Africa and friends of Africa trust.”