Ecobank Group reports 63% increase in pre-tax profit for Q2 2023

Ecobank Group released its 2023 second-quarter results showing a 63% increase in pre-tax profits to N92.52 billion. 

The increase in second-quarter profits helped its half-year profit before tax to rise by 38% to N150.31 billion compared to N108.96 billion same period last year. 

 Here are key highlights from the Q2 Earnings 

• Interest Income for the quarter was N238.67 billion compared to N161.09 billion in the corresponding quarter of 2022.

• Fees and Commission Income gained 25% to N71.01 billion from N56.73 billion recorded in the same period last year. 

• Other Operating Income increased significantly by 262% to N13.07 billion from N3.61 billion reported last year. 

• Pre-tax profit for the quarter increased to N92.52 billion from N56.89 billion profit in Q2 2022. 

• Impairment charges on loans and advances declined by 34% to N17.93 billion from N27.02 billion 

• Loans and advances to customers increased by 58% to N8.03 trillion. 

• Deposits from customers for the half year ended 30th June 2023 increased to N14.71 trillion as against N9.60 trillion recorded as at 31st December 2022 

• Earnings Per Share increased to N3.19 from N2.20  

What The Bank Is Saying 

Commenting on the half-year financial statement, the CEO of Ecobank Group, Jeremy Awori said: 

• “Our results for the first six months of 2023 demonstrate the benefits of our diversified business model, resilient balance sheet and our commitment to serving our customers.
• Profit before tax increased by 18% to $308 million and by 67% if you exclude foreign currency translation effects.  

• Net revenues were up 14% to $1,037 million, or 38% in constant currency, and we delivered a return on tangible equity of 27%.
• We achieved these results despite continued challenging macroeconomic conditions in the second quarter, with significant weaknesses in African currencies, high consumer prices and tepid economic growth.”  

• “We have made meaningful progress in formulating our strategic roadmap, which will provide the blueprint for our Growth, Transformation and Returns agenda.
• Over the last few months, as I engaged with our customers, colleague Ecobankers, and other stakeholders, my confidence in our growth opportunities has been reaffirmed.
• We see opportunities to build stronger and better customer relationships in our businesses, forge strategic partnerships and be the go-to Payments bank, leveraging our superior platforms.” 

• “In addition, we will take forward our transformation and growth agenda for our corporate, commercial and consumer banking businesses.
• Notably, achieving our goals will require even more discipline in execution, proactive risk management, and focus on delivering for our customers.
• Furthermore, the prudent management of our balance sheet and capital remains a priority. We will also continue investing in our best-in-class technology, retaining and attracting talent while reinforcing the right culture” 
• “Finally, I am proud of Ecobank’s contributions across the African communities in which we operate, and equally proud of the good work Ecobankers do for our customers daily,” Awori concluded.