- Profit before Tax increases by 24% to US$261m
- Net revenues up 10% to US$910m
- Record return on tangible equity of 19.5%
- Earnings per share increases by 24% year-on-year
Ecobank Group today reports strong performance during the first half of 2022, with unaudited Profit before Tax (PBT) increasing by 24 percent to US$261million. The Ggoup also announced a record return on tangible equity of 19.5 percent, and increased earnings per share for shareholders by 24 percent year-on-year. Despite the challenging operating environment of high inflation weakening African currencies, and slowing economic growth, the group’s net revenues increased by 10 percent to US$910million.
These results demonstrate the sustained success of our revenue expansion goals under our ‘Execution Momentum’ strategy. They also show the effectiveness of the bank’s diversified operating model which impacts our customers and clients positively, as we benefit from our ‘Manufacturing centrally, Distributing locally’ strategic approach.
Our business lines, Corporate and Investment Banking (CIB), Consumer Banking (CSB) and Commercial Banking (CMB), grew their PBT by 33 percent, 43 percent and 15 percent, respectively. The performance of each of our regions also demonstrates the strength of our diversified pan-African presence. Nigeria, French-Speaking West Africa countries (UEMOA), Central, East, Southern African countries (CESA) and Anglophone West Africa markets (AWA) grew their PBT by 74 percent, 42 percent, 37 percent and 8 percent, respectively.
During the first half of this year, clients’ economic activities continued their pandemic era recovery trajectories. Higher spreads on buying and selling currencies for clients and higher payment volumes increased our revenue. The payments business grew 23 percent, or US$22million, to US$119 million (13 percent of group revenues). The acquisition of more merchants and the increased usage of our cards by customers through sales and promotional marketing campaigns drove this growth.
In addition, customers continue to trust us and adopt our digital platforms (Omni Plus, Omni Lite, Ecobank Online, Xpress Points) across our businesses. As a result, customer deposits increased by 3 percent year-on-year, with the value of digital transactions rising by US$10.5billion to US$39.1billion.
Ade Ayeyemi, Group Chief Executive Officer, commenting on this solid half-year performance, said: “Our results for the first six months of 2022 reflect the benefits of our diversified business and geographies. It also shows our resilience and execution capabilities in the service of clients and customers in a challenging environment while generating adequate returns for our shareholders”.
Ayeyemi continued: “Our investments in technology and digital capabilities are scalable, and have reduced our cost-to-serve. Coupled with revenue growth, we achieved a record cost-to-income ratio of 56 percent. We increased impairment charges to reflect heightened credit risks. More importantly, we have proactively built-up central impairment reserves of US$206million, which we can deploy, if needed, 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”.
During the first half of this year, Ecobank Group, across its pan-African footprint, won nearly 20 awards from highly respected industry media and corporations. These reflect the beneficial impact on our services to our customers and communities, anchored in our vision to contribute to Africa’s economic development and financial integration. Indeed, a few days ago, Euromoney named Ecobank as ‘Africa’s Best Bank’, ‘Africa’s Best Digital Bank’ and ‘Africa’s Best Bank for SMEs’ at its 2022 awards ceremony.
“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 I would like to thank them for their diligence and commitment. As always, we are working toward realising our vision and remaining the bank that Africa and friends of Africa trust.” Ayeyemi concluded.
Ecobank Transnational Incorporated (‘ETI’) is the parent company of the Ecobank Group, the leading independent pan-African banking group. The Ecobank Group employs over 13,000 people, and serves over 32 million customers in the consumer, commercial and corporate banking sectors across 33 African countries.
The group has a banking license in France and representative offices in Addis Ababa, Ethiopia; Johannesburg, South Africa; Beijing, China; London, the UK; and Dubai, the United Arab Emirates. The group offers a full suite of banking products, services and solutions including bank and deposit accounts, loans, cash management, advisory, trade, securities, wealth and asset management. ETI is listed on the Nigerian Exchange in Lagos, the Ghana Stock Exchange in Accra, and the Bourse Régionale des Valeurs Mobilières in Abidjan.
