By Matthew Don
Ecobank Transnational Incorporated (ETI) has announced its audited results for the first-half (H1) ended June 30, 2017 which shows an improvement in what it recorded last year.
The banks is therefore convinced it is making progress, and determined to sustain the successes it has recorded.
The banking group reported gross earnings of N386.85billion in the review period from N273.44billion in the corresponding H1 period of 2016, which indicates 41.48 per cent growth.
Interest income increased to N241.90billion in H1’17 from N180.057billion in H1’ 2016, a growth of 34.35percent. Net Interest Income grew by 18.84percent to N142.73billion, from N120.10billion in H1’2016.
Ecobank Transnational Incorporated and its subsidiaries (together, ‘the group’) provide retail, corporate and investment banking services throughout sub Saharan Africa outside South Africa. The Group had operations in 40 countries and employed over 16,743 people (31 December 2016: 17,343) as at 30 June 2017.
Ecobank Transnational Incorporated has primary listing on the Ghana Stock Exchange, the Nigerian Stock Exchange and the Bourse Regionale Des Valeurs Mobilieres (Abidjan) Cote D’Ivoire.
Profit Before Tax (PBT) grew by 11.24 per cent to N46.24billion from N41.56billion in H1’16; while the group profit for the period from continuing operations grew by 19.69percent to N37.69billion, from N31.49billion in H1’16. Its profit for the H1’17 period stood higher at N37.73billion, a growth of 21.41percent from N31.08billion in H1’16.
Ade Ayeyemi, group chief executive officer said: “Our audited half year results demonstrated the benefits of our diversified business model. Despite a fragile macroeconomic backdrop in most of our markets, we still generated a 15.6 per cent return on tangible equity and further improved our cost-to-income ratio to 60.6 per cent, driven by our continued cost reduction initiatives across the network.”
He further said: “We are also happy with the progress we are making on the digital front; particularly on our strategy to enable millions of unbanked Africans have access to financial solutions using our revolutionary Ecobank App and other digital channels. We have also recently announced the appointment of Eric Odhiambo as Chief Risk Officer, to help drive our risk management objectives and improve our risk culture.”
Said Adeyemi:“Our revenues increased 5percent in constant currency, and highlighted encouraging growth in our Trade and FICC, businesses, thanks to encouraging client activity and improving foreign-exchange markets.
“Profit before tax, however, fell 20 per cent in constant currency, due to continued provision building and elevated cost-of-risks as we had earlier communicated.
“Overall, we are making good progress on our strategy and continue to serve our customers diligently. We look forward to the second half of the year with excitement.”