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Ecobank Group increases PBT by 24% in H1

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During the first half of this year, Ecobank Group, across its pan-African footprint, won nearly 20 Awards from media and corporations.

By Eugene Onyeji

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Ecobank Group has reported a strong performance during the first half of 2022, with Profit before Tax (PBT) increasing by 24% to US$261 million from $210 million posted in half year 2021.

This was contained in the group’s unaudited half year results released recently on the Nigerian Exchange (NGX) Limited.

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The group net revenue went up to $910 million as against $825 million in 2021, an increase of 10 per cent, despite the challenging operating environment of high inflation and weakening currencies in Africa.

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Net profit amounted to $130 million higher than $106 million achieved in 2021, while earnings per share stood at EPS $0.53 cents from $0.43 cents.

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Gross loans and advances to customers increased to $10.053 billion in H1, 2022 from $9.454 billion in 2021, while deposits from customers rose to $19.745 billion as against $19.143 billion in 2021.

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Ecobank group balance sheet also revealed cost of funds to be 2.3 per cent as at June 30, 2022 from 2.1 per cent in 2021, non-performing loans (NPL) ratio at 6.2 per cent lower than 7.4 per cent H1, 2021, while NPL coverage ratio at 113.5 per cent from 86.7 per cent.

Read Also: Ecobank reduces loans, makes N92b net profit

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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.”

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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 56.0%. We increased impairment charges to reflect heightened credit risks. More importantly, we have proactively built-up central impairment reserves of $206 million, 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.

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“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 towards realising our vision and remaining the bank that Africa and friends of Africa trust.” Ayeyemi concluded.

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