Ecobank Transnational Incorporated PLC has released its unaudited group financial results for the quarter ended March 31, 2026
According to the released results, the Group’s profit before tax grew by 1.1% YoY to N270.3 billion in Q1 2026, compared to N267.3 billion in Q1 2025.
Profit after tax grew faster at 5.6% YOY to N197.5 billion, but earnings per share grew at 0.28% to N5.22
Key highlights (Q1 2026 vs Q1 2025)
- Gross earnings: N1.144 trillion; +8.52% YoY
- Interest income: N777.50 billion; +11.95% YoY
- Interest expenses: N237.119 billion; -2.50% YoY
- Net interest income: N540.386 billion; +19.73% YoY
- Net fee and commission income: N212.603 billion; +7.12% YoY
- Non-interest income: N341.246 billion; +1.16% YoY
- Operating income: N881.633 billion; +11.79% YoY
- Operating expenses: N432.153 billion; +6.17% YoY
- Impairment charge: N179.244 billion; +56.80% YoY
- Operating income after impairment: N270.235 billion; +1.1% YoY
- Total Assets: N48.829 trillion; -1.67%
- Loans and advances to customers: N15.955 trillion; -5.90%
- Customers’ deposit: N36.808 trillion; +1.02%
- Shareholders’ funds: N3.970 trillion; -3.71% YoY
Driving the numbers
ETI’s Q12026 performance is strong, with growth across major metrics: gross earnings, interest income, non-interest income and profitability
However, there appears to be margin pressure. Although pre-tax profit grew by 1.1% YoY, the Pan African bank retained 24% of its gross profit compared to 25% retained in Q1 2026.
Overall, profitability was driven by strong gross earnings, which in turn was driven by growth in interest income and non-interest income.
Non-interest income growth was a bit moderate at 1.1%, with the contribution to gross earnings dropping to 30% from 32% in Q1 2026.
- Interest income from loans and advances continues to drive the bank’s earnings. The bank made N376 billion from this asset class; 5% higher than what it made in Q1 2025, contributing over 48% to the interest income
- It also earned well from its investment in securities and treasury bills, at N355 billion, up 22% and 46% of total interest income, respectively.
Overall, while the contribution of interest income from loans and advances to customers dropped from 51% in Q1 2025, the contribution of interest income from treasury bills (TBs) and securities to total interest income increased from 42.2% in Q1 2025
Interest Expenses
On interest expenses, the over 23% decline to N54 billion in interest expenses on borrowed funds contributed to the decline in total interest expenses to N237 billion compared to the N243 billion in Q1 2025
- Meanwhile, interest expenses on customers’ deposits increased by 8% to N158 billion, but just 0.43% of customers’ deposits of N36.81 trillion.
So, while interest income increased, interest expenses declined, which supported the elevated N540 billion (+20%) in net interest income.
- Strong earnings from non-interest activities, including cash management and related fees of N118 billion, pushed the bank’s total operating income to N882 billion; up 12%.
Operating expenses/Impairments
On the expense side, operating expense, including staff expenses, depreciation and other operating expenses, increased by 6% and consumed over 49% of operating revenue
Ecobank recorded substantial writeback on impairment of N86.41 billion (Q1 2025: N24.87 billion) in Q1 2026, which reduced impairment to N179.244 billion.
- Actual impairment charges for the current period stood at N241billion, up 150% YoY. This is 1.51% of the total loans and advances to customers as of March 31, 2026.
Balance sheet
The statement of financial position shows that total assets declined marginally by 1.67% to N48.83 trillion. This can be attributed to the decline in book value of some asset classes: loans, securities, treasury bills, etc.
- Loan and advances declined by 5.9% to N20.5 trillion, while investment in securities and treasury bills declined by 14% to N14.882 trillion
- Meanwhile, the bank mobilized about N370 billion deposits in Q1, taking total customers’ deposits to N36.81 trillion. This accounts for over 75% of total assets.
Market performance
ETI shares declined by 3.8% to N75 compared to N78 last week. However, month-on-month, it has gained 63%, and YtD, it has gained 131.5%. This performance has surpassed last year’s 50% YtD gain
