Ecobank Transnational Incorporated (ETI) has announced exceptional financial results for the full year 2024, with a record profit before tax (PBT) of $658 million and earnings per share (EPS) of US $1.36, reflecting a 33% year-on-year growth in constant currency terms.
The audited financial statement of the Pan-African banking Group filed to the Nigerian Exchange Group at close of business on Thursday showed the group’s strategic focus on its Growth, Transformation, and Returns (GTR) strategy proved instrumental in navigating a challenging macroeconomic landscape, characterized by inflationary pressures, currency depreciation, and tighter regulatory conditions in key African markets.
Jeremy Awori, CEO of Ecobank Group, expressed his satisfaction with the results, emphasizing that the 2024 achievements are a testament to the resilience of the company’s diversified operations across 33 African markets.
“Despite an environment marked by high inflation, rising interest rates, and significant currency fluctuations, Ecobank has delivered strong returns and established a robust foundation for sustained growth,” Awori stated.
The bank’s Return on Tangible Equity (ROTE) reached a record 32.7%, underscoring the efficacy of its strategy and disciplined execution. The group also experienced a notable increase in attributable profit after tax to ETI shareholders, rising 16% to $333 million.
Furthermore, Ecobank achieved a cost-to-income ratio (CIR) of 53%, a significant improvement, reflecting ongoing efforts to drive operational efficiencies and reduce funding costs.
Ecobank’s net revenue surged by 18% in constant currency terms to $2.1 billion, propelled by strong growth in fee and commission income, which accounted for 25.1% of total revenues, up from 23.5% in 2023.
The group’s customer deposit base also grew by 17%, reaching $20.4 billion, driven by the strategic shift towards low-cost, stable current and savings accounts, which increased the CASA ratio to 86.4% from 83.4% in 2023.
In a testament to the success of its customer engagement strategy, Ecobank’s Consumer & Commercial Banking (CCB) division saw a 9% increase in active customers, with card revenue growing 14% to $91 million.
Additionally, Ecobank launched several innovative products, including the Premium Infinite Card and new business lines in Payments, Remittances, and Banking as a Service (BaaS), thereby enhancing its value proposition in the digital and cross-border payment space.
In Corporate & Investment Banking (CIB), Ecobank achieved remarkable success, particularly in wholesale payments, with a 25% increase in payments via OMNI Plus and a 24% rise in transactions on RapidCollect.
The bank’s letters of credit business saw a significant rise of 40 basis points, demonstrating its strong position in trade finance. Furthermore, Ecobank launched new investment products in Ghana and the UEMOA region, while also expanding its fixed-income offerings in five new markets.
Ecobank’s disciplined approach to managing its balance sheet was evident in its decision to increase reserves for expected credit losses (ECL) to safeguard against emerging risks. Despite this prudent stance, the group maintained a healthy loan-to-deposit ratio of 53% and bolstered its capital adequacy ratio by 80 basis points to 15.8%, comfortably exceeding regulatory requirements.
In terms of profitability, the group’s net interest income grew by 19% in constant currency to $1.2 billion, fueled by a reduction in funding costs and solid growth in net fees and commission income. Operating expenses were controlled through ongoing cost programs, resulting in a marginal 0.4% decline, which, coupled with higher revenues, translated into improved operational efficiency.
Awori concluded, “2024 was a pivotal year for Ecobank. We have laid the groundwork for long-term, sustainable growth while delivering exceptional returns to our shareholders. Our diversified footprint, digital transformation, and focused execution of our GTR strategy are key enablers of future success. As we navigate the complexities of the African market, we are committed to creating value for our customers, shareholders, and communities.”
Ecobank’s results position the group as a beacon of financial strength and resilience in Africa, with a clear focus on innovation, efficiency, and diversification as it continues to expand its leadership in the African banking sector.
