Ecobank Delivers Big as Profit Skyrockets to N735.9 Billion in Latest Report

• Ecobank Transnational Incorporated reported an after-tax profit of N735.9 billion for the fiscal year 2024
• This shows that its gross earnings climbed 131% from N1.83 trillion to N4.22 trillion in 2024
• The group's revenue jumped from N1.34 trillion in 2023 to N3.11 trillion, a staggering 133% growth

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The 2024 fiscal year saw Ecobank Transnational Incorporated report a profit after tax of N735.9 billion, a 179% increase over the N263.5 billion reported the year before.

The company's financial statement, which was made public on the Nigerian Exchange Limited on Thursday, showed that its gross earnings increased 131% to N4.22 trillion in 2024 from N1.83 trillion the year before.

Improved loan recoveries and increased interest and non-interest earnings were the main drivers of this growth. Additionally, the group's revenue increased by an astounding 133%, from N1.34 trillion in 2023 to N3.11 trillion.

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Operating profit before impairment charges increased from N615.9 billion to N1.46 trillion, a 138% increase from the previous year. A strong growth plan, cost control, and enhanced operational efficiency all contributed to the group's 160% increase in earnings before taxes, which rose to N980.7 billion from N376.5 billion in 2023.

Ecobank's financial condition improved, as seen by the 67% increase in total assets from N25.9 trillion in 2023 to N43.3 trillion in 2024. Higher customer deposits, loan growth, and an increase in investment securities all contributed to the increase.

The bank's ongoing lending activities to individuals and businesses throughout its operational regions are reflected in the 53% increase in loans and advances to customers, which went from N10 trillion to N15.3 trillion in the previous year. Customer confidence in the bank's services rose, as seen by the 66% growth in customer deposits from N19 trillion to N31.6 trillion.

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As a result of the group's improved financial strength and retained earnings from excellent profitability, its total equity increased by 68% from N1.65 trillion to N2.78 trillion. Basic and diluted earnings per share also increased significantly, rising 166% from 757.932 kobo to 2,019.684 kobo in the prior year.

From N1.21 trillion in 2021 to N2.76 trillion in 2024, the bank's interest income increased by 128 percent. A growth in revenue from loans, advances, and investment securities was a major factor in this. Other interest income dropped from N876.2 million to N749.9 million, a 14% decrease.

Notwithstanding the robust increase in revenue, the bank also had to deal with growing funding costs, as interest expenses increased by 123% to N1 trillion from N451.7 billion the year before. Nonetheless, net interest income continued to climb steadily, increasing 132% from N756.8 billion in 2023 to N1.75 trillion in 2024.

Due to the significant increase in revenue, Ecobank's total operating income increased by 133% to N3.11 trillion from N1.34 trillion in 2023. On the other hand, increased staff costs, depreciation, and other operational expenses caused operating expenses to rise sharply as well; staff costs increased by 124% to N671.5 billion from N299.7 billion in the previous year, while depreciation and amortisation expenses increased by 102% to N118.2 billion from N58.4 billion.

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The total operating expenses increased by 138% from N720.5 billion in 2023 to N1.65 trillion, thanks to a 138% growth in other operating expenses from N362.4 billion to N861.7 billion.

In contrast to the N25.9 billion loss in 2023, the bank did not report any net financial losses from hyperinflationary economies in 2024. Concurrently, the percentage of associates' post-tax results decreased from N89.4 million in 2023 to N110.3 million.

Ecobank sends warning to customers

Legit.ng reported that while offering customers continuous access to financial services via its digital platforms during the holiday season, Ecobank Nigeria has warned them to be on the lookout for scammers during the Yuletide.

Adeola Ogunyemi, Ecobank Nigeria's head of Consumer Banking, emphasized in a statement on Monday that customers can easily continue their transactions and shopping through the bank's numerous digital platforms.

Ogunyemi emphasised the Bank's long-standing dedication to digital transformation, which seeks to enhance customers' satisfaction and offer alternative methods of accessing banking services.

Source: Legit.ng