Ecobank Group grows profit by 24% in first half of 2022
By EDU ABADE, Business Editor
Ecobank Group has reported 24 per cent increase in Profit Before Tax (PBT) for the first half of 2022 to US$261 million from $210 million posted in the first half of 2021.
Its unaudited half year results released in the Nigerian Exchange (NGX) Limited indicated that the group’s net revenue rose to $910 million from $825 million in 2021, an increase of 10 per cent, despite the challenging operating environment occasioned by high inflation and falling value of African currencies.
Net profit amounted to $130 million higher than $106 million achieved in 2021, while earnings per share stood at EPS $0.53 cents from $0.43 cents.
Gross loans and advances to customers increased to $10.053 billion in H1, 2022 from $9.454 billion in 2021, while deposits from customers rose to $19.745 billion as against $19.143 billion in 2021.
Ecobank group balance sheet also revealed cost of funds to be 2.3 per cent as at June 30, 2022 from 2.1 per cent in 2021, non-performing loans (NPL) ratio at 6.2 per cent lower than 7.4 per cent H1, 2021, while NPL coverage ratio at 113.5 per cent from 86.7 per cent.
Commenting on the performance, Group Chief Executive Officer (GCEO) of the bank, Ade Ayeyemi, said: “Our results for the first six months of 2022 reflect the benefits of our diversified business and geographies. It also shows our resilience and execution capabilities in the service of clients and customers in a challenging environment while generating adequate returns for our shareholders.”
Ayeyemi continued: “Our investments in technology and digital capabilities are scalable and have reduced our cost-to-serve. Coupled with revenue growth, we achieved a record cost-to-income ratio of 56 per cent. We increased impairment charges to reflect heightened credit risks.
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“More importantly, we have proactively built-up central impairment reserves of $206 million, which we can deploy if needed in a stressed credit environment. At the same time, our balance sheet remains liquid and adequately capitalised, providing us adequate capacity to serve our customers better.”
During the first half of the year, Ecobank Group, across its pan-African footprint, won nearly 20 Awards from highly respected industry media and corporations. These reflect the beneficial impact on our services to our customers and communities, anchored in our vision to contribute to Africa’s economic development and financial integration. Indeed, a few days ago, Euromoney named Ecobank as Africa’s Best Bank, Best Digital Bank and Best Bank for SMEs at its 2022 awards ceremony.
“These are a testament to our passion for serving clients and customers and our continued investments in technology, processes and people. I am extremely proud of Ecobank employees and I thank them for their diligence and commitment. As always, we are working towards realising our vision and remaining the bank that Africa and friends of Africa trust,” he said.