Profit after tax also grew by 916 per cent to
N104.51billiion in nine months of 2021 from N10.28billion reported in prior
nine months of 2020.
Growth in gross earnings, net investment income, Other
operating income and decline in operating expenses were major financial
parameters that contributed to the Group’s significant increase in profits amid
macro economy challenges where it has branches.
Gross Earnings for the period grew by 12 per cent to
N686.8billion in nine months of 2021 from N614.5billlion reported in nine
months of 2020.
As net investment income rose by 523 per cent to
N5.56billion from loss of N1.3billion in nine months of 2020, Other operating income
closed nine months of 2021 at N11.59billion from N3.3billion reported in nine
months of 2020.
In addition, total operating expenses dropped by three per
cent to close nine months of 2021 at N300.72billion from N292.4billion in nine
months of 2020.
The Group CEO, Ecobank, Ade Ayeyemi in a statement said: “We
reported strong results, reflecting the continued diligence of Ecobankers in
putting our customers first and ensuring that we meet their respective needs.
“For the nine months period up to September 2021, we earned
$352 million in pre-tax profit, a 41per cent increase compared to the prior
year and revenues of $1.3 billion, a four per cent growth. Hence return on
tangible equity increased to 17.9per cent, and we grew the per-share value of
our shareholders’ equity by 11per cent to 5.52 US dollar cents.
“These results also demonstrate the hard work invested in
driving efficiency in all our businesses in line with our deliberate focus on
driving down our cost-toserve, sustain improvement in the quality of our credit
portfolio, and strengthen liquidity and capital buffers.”
“As a result, our cost-to-income ratio has been declining
consistently quarter on quarter, currently 58.3 per cent. In addition, the
stock of nonperforming loans as a percentage of loans outstanding is now at 6.9
per cent compared to 9.9per cent a year ago.
“At the same time, we are proactively building loan
reserves, currently at 91.2per dcent of nonperforming loans, close to our
near-term target of 100per cent.
“We have boosted the firm’s liquidity profile, thanks to
growing customer deposits fueled by an acceleration in digital channel
adoption, partnerships with Fintechs, Telcos, and businesses in the Payments
Ecosystem,” Ayeyemi added.
“During the quarter, Arise B.V., a major institutional
shareholder of ETI made a $75 million Additional Tier 1 (AT1) investment in the
firm.
“Adding onto the $350 million Tier 2 Sustainability Note ETI
successfully issued to investors in June. The AT1 further improves our Tier 1
capital and double leverage ratio and demonstrates stakeholder confidence in
our strategy and business prospects,” Ayeyemi continued.
“Finally, we continue to invest in new digital and mobile
capabilities to enhance customer experience, alongside the investments we are
making in our people, processes, and controls, to ensure the continued
resilience of our business and service delivery to our clients. I am deeply
grateful to all our customers and the Ecobank team for the remarkable job,”
Ayeyemi added.
The group’s total assets thus grew by five per cent to
N10.9trillion as at September 30, 2021 from N10.38trillion in full year ended
December 31, 2020.
As loans and advances to customers dropped by one per cent
to N3.67trillion from N3.7trillion in 2020 FY, deposits from customers grew by
six per cent to N7.79trillion as at September 30, 2021 from N7.32trillion
reported in 2020FY.