Ecobank Transnational Incorporated (ETI) has posted its 2021 half year unaudited results, recording a profit before tax which grew to $210 million.
This translates to an increase of by $40 million, or 23 per cent, or in constant currency, by 28 per cent, driven by positive operating leverage, efficiency gains, and improving credit quality.
In its unaudited financial statement for the first half of the year ended June 30, 2021, Ecobank said its operating income improved by 15.35 per cent year-on-year from June 30, 2020, as operating profit before impairment charges and taxation rose by 32.62 per cent to N138.26 billion.
At the end of H1 2021, Ecobank’s total assets increased to N11.02 trillion from N10.38 trillion in December 2020. The loans and advances to its customers fell from N3.70 trillion in H1 2020 to N3.63 trillion in H1 2021, while customer deposits in all its operating locations increased by 7.38 per cent from N7.32 trillion to N7.86 trillion. Total equity depreciated by 1.06 per cent as it reduced from N811.75 billion to N803.18 billion.
Commenting on the financials, chief executive of the Ecobank Group, Ade Ayeyemi, said: “We saw continued and sustained resilience in our performance, which is indicative of the success of our ‘execution momentum’ drive.
“As a result, we generated a return on tangible equity of 16.1 per cent versus 15.2 per cent a year ago and increased diluted earnings per share and tangible book value per share by 19 per cent and six per cent, respectively.”
In addition, he stressed that profit before tax increased 23 per cent to $210 million, as the Group revenues rose seven per cent to $825 million, despite the challenging operating environment with the third wave of coronavirus infections threatening economic recovery.
“Revenues grew 13 per cent and six per cent in our Commercial and Consumer businesses, while our focus on growing the trade business led to increased trade assets.”