Ecobank Transnational Inc. has reported a Profit After Tax (PAT) of N25.6 billion in the fourth quarter of 2020 (Q4, 2020) compared to N20.6 billion recorded in a similar period of 2019, indicating a rise in profit by 24.1% Year-on-Year.
This is according to the firm’s recent financial statement made available on the Nigerian Stock Exchange and seen by Nairametrics.
Ecobank Transnational Inc. had earlier recorded a rise in its interest income by about 11% Y-o-Y, from N125.93 billion as of Q3 2019 to N139.6 billion in Q3 2020. It however dipped in Q4 2020 by 4% from N138.3 billion recorded in Q4 2019 to N132.8 billion.
Other key highlights of Q4 2020 are;
- Net interest income rose to N90.3billion, +19% Y-o-Y.
- Fees and commission income rose to N45.5billion, +7% Y-o-Y.
- Other operating income increased to N13.2 billion, +25% Y-o-Y.
- Operating expenses declined to N106.4 billion, -1% Y-o-Y.
- Profit Before Tax (PBT) declined to N30.9 billion, -16% Y-o-Y.
- Taxation declined to N5.8 billion, -65% Y-o-Y.
- Deposits from customers increased to N7.3 trillion by the end of FY 2020, +23% Y-o-Y.
- Loans and advances to customers increased to N3.7 trillion by the end of FY 2020, +9.4% Y-O-Y.
- Total assets increased to N10.3 trillion by the end of FY 2020, +19% Y-o-Y.
- Total liabilities increased to N9.5 trillion by the end of FY 2020, +19% Y-o-Y.
Upshots
The increase in the firm’s Profit After Tax (PAT) figures might be attributable to a combination of an increase in income-earning components like; net interest income, fees and commission, etc., coupled with a reduction in expenditure items like operating expenses and tax.
What you should know
- Nairametrics had earlier reported that Ecobank Nigeria had secured a N50 billion 10-Year subordinated loan targeted towards MSMEs.
- A few days ago, Fitch Ratings had assigned Ecobank Nigeria Limited, a Long-Term Issuer Default Rating (IDR) of ‘B’-with a stable outlook and quality management.
- Ecobank Transnational Inc. share price closed at N6.5 on the floor of the Nigeria Stock Exchange gaining 1.56%.
All these are just window dressing because this bank has not been able to pay their shareholders dividends for more than 5 years now, half of their branches have been closed down especially in Edo State etc. Just hope they will not run it aground soonest because there are no clear cut directions as there’s no ownership spirit. Though they are still able to convince some institutions to lend to them some subordinated loans.