Ecobank Plc has reported its 2024 third-quarter results showing pre-tax profits grew by 136.94% year on year, reaching N265.029 billion.
These results brought the bank’s nine-month 2024 pre-tax profit to N708.542 billion, compared to N262.171 billion for the same period last year, a YoY increase of 170.26%.
Key highlights (2024 Q3 vs 2023 Q3)
- Interest Income: N701.998 billion +95.43% YoY
- Interest Expense; N260.648 billion +104.25% YoY
- Net interest income; N441.350 billion +90.56% YoY
- Fees and commission income: N229.785 billion +139.91% YoY.
- Fees and commission expenses: N26.071 billion +152.44% YoY
- Non-interest revenue: N344.342 +112.67% YoY
- Operating Income: N785.692 billion +99.66% YoY
- Operating expenses: N440.725 billion +119.84% YoY
- Operating profit before impairment charges: N344.967 billion +78.70 YoY
- Impairment charge on financial assets: N79.991 billion -1.54% YoY
- Operating profit after impairment charges before tax: N264.997 billion +137.02% YoY
- Profit after tax: N180.856 billion +132.76% YoY.
- Loans and advances to customers N16.251 trillion +61.95%.
- Cash and Cash equivalents N7.302 trillion +95.18%
- Total Assets N44.456 trillion +71.53%.
- Customers’ deposits N32.933 trillion +73.18%.
- Share capital and premium: N353.513 billion
- Retained earnings: N1.293 trillion +86.67%
Commentary
Ecobank’s stellar Q3 performance reflects strong growth across both the interest and non-interest income segments.
- Interest income rose by 95.43% YoY, driven primarily by higher interest rates and the bank’s growing loan portfolio, with loans and advances to customers increasing by 61.95%.
- Over nine months, Ecobank generated N1.146 trillion in total interest income, with 59% of it derived from loans and advances to both customers and other financial institutions.
- However, net interest income’s contribution to operating income dropped by 4.56% to 56.17%, as interest expenses increased by 104.25%, outpacing the growth in interest income.
- This was likely due to higher funding costs, reflecting the bank’s aggressive lending and deposit mobilization activities.
The shift in income structure was offset by the impressive growth in non-interest income, which now accounts for 44% of operating revenue, a 6.52% increase.
- Non-interest income benefited from a surge in net fees and commission income (up 139.91%), driven by cash management services and related transaction fees.
- Another key driver of profitability was the foreign exchange trading gain of N314.360 billion reported over the nine months of 2024, compared to a loss of N68.285 billion in the same period last year.
Despite the 119.84% increase in operating expenses, Ecobank’s operating profit before impairments grew by 78.70% YoY to N344.967 billion.
Additionally, impairment charges on financial assets declined marginally by 1.54%, further supporting the bottom line.
Ecobank Nigeria’s Contribution
Ecobank Nigeria contributed 62.54% of the group’s post-tax profit in reported currency.
For the nine months of 2024, the Nigerian region’s post-tax profit surged 165% year-on-year (YoY) to N307.640 billion, reflecting strong growth compared to the same period last year.
Investor Sentiment
- Ecobank’s nine-month profit after tax reached N491.879 billion, representing a 168.90% YoY increase, positioning the bank for strong full-year results.
- This exceptional performance, coupled with the growth in non-interest income and a return to FX gains, is likely to enhance investor confidence.
- Ecobank’s shares have already reflected a positive sentiment, with a year-to-date (YtD) gain of 15.79%, making it the 6th best-performing banking stock on the Nigerian Exchange. This follows a 97% YtD return in 2023.
