Ecobank Group Profit Before Tax Hits $581 Million

Ecobank Group posted a profit before tax of $581 million on Tuesday for the year ended December 31, 2023.

The Group's audited 2023 year-end results, posted on the Nigerian Exchange, highlight the stability, effectiveness, and resilience of Ecobank's diverse business model.

Ecobank Group revenue rose by 11% to $2.064 billion, up from $1.862 billion in the corresponding period of 2022.

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Ecobank Group's profit before taxes increased by 8%, from $540 million in 2022 to $581 million in the year under review. As of December 31, 2023, earnings per share was $1.17.

In 2023, net interest income rose by 15% to $1.169 billion, while net interest margin (NIM) declined to 5.4% from $1.014 million.

In December 2023, the Ecobank Group's gross loans and advances (EOP) were $11.1 billion, down from $11.5 billion in the same month the previous year. While customer deposits were $20.0 billion, down from $20.8 billion in December 2022.

Speaking on the results, Ecobank Group CEO Jeremy Awori said, "Our encouraging results reflect a re-energised commitment to putting our customers first and the work we have started on revenue diversification, growth, and low-cost deposit mobilisation.

"For instance, our Consumer and Commercial banking businesses increased their share of group-wide revenues and profits. In addition, we continued our proactive approach to disciplined cost management, aimed at eliminating unproductive and wasteful costs and redirecting savings into investments in marketing and branding, sales capabilities, and technology that should drive returns in the future."

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Awori added, "Since finalising our GTR strategy, we have moved quickly to take the necessary steps towards winning with our customers."

He said we changed our executive management group and organisational structure to improve our effectiveness and set ourselves up for success.

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"I want to thank the Board for its guidance and support and all Ecobankers for their dedication to our customers and our pan-African purpose. We are confident in the steps we take under our GTR strategy to win with our customers and deliver the returns our shareholders expect of us." 

Ecobank Q3 2023 Review

Ecobank Group announced its nine (9) months of earnings for this year, which ended in September 2023. The Group recorded a 59% increase, which was N1.21 trillion, far greater than the record of 2022, which was N761.29 billion for the same period. 

This was revealed in the Audited Consolidated Financial Statements for the period ending September 30, 2023, filed with the Nigerian Exchange Limited on Thursday.

It was earlier stated that Ecobank delayed filing its Q3 financial results over the external audit of the results for the period. In the notice on the delay filed with the NGX,  the Board and Management of Ecobank Transnational Incorporated said that it decided to undergo an audit of the 2023 Third Quarter Financial Results of the Ecobank Group, the PUNCH reported.

Ecobank's Q3 results were reported in both the Naira and the United States Dollar. They show that the bank gained in the Naira financial records but declined by 15%, or $2.084 billion when recorded in dollars. Ecobank revenue (operating income) rose 12% to $1.518 billion and 55% to N884 billion.