Home Business Ecobank reports 52% growth in H1 profit

Ecobank reports 52% growth in H1 profit


Ecobank Transnational Incorporated (Ecobank) has reported a 52 per cent growth in profit after tax for the first six months ended June 30, 2015.

The pan African bank profit moved from N31.6 billion in June 30, 2014 to N48 billion while its profit before stood at N61 billion, 47 per cent above the N41.7 billion posted in the prior first months performance.
Key contributors to the financial institution impressive profits performance include 21 per cent growth in gross earnings from N225.3 billion in H1 2014 to N273.99 billion in H1 2015.
Interest income also recorded 25 per cent growth to N169.7 billion as against N135.4 billion.
Commenting on these results, Group Chief Executive Officer of Ecobank, Albert Essien, said: “Our results for the six months ended June 2015 reflected the strength of our balanced business model and pan-African strategy.
We increased profit after tax by 26per cent to N48 billion and generated a return on average equity of 18.5per cent for our shareholders.
Despite a difficult operating environment, we stayed committed to our customers – households and businesses alike – by focusing on providing them with the financial solutions they need. In the second quarter, loans and deposits grew gradually, following tepid growth in the first. We continued to drive cost efficiencies in our businesses and our cost-income ratio improved to 62.5per cent compared to 68.1per cent in the previous year.
“Our balance sheet remained healthy, as evidenced by a capital adequacy ratio of 22per cent. Ecobank is well positioned to gain from resumption in economic activity in Africa and I am confident in the ability of our 19,000 plus employees to serve our clients with pride and excellence.”
From the financial structure, Ecobank total assets rose by 21 per cent from N3.8 trillion as at December 31, 2014 to N4.6 trillion in June 30, 2015.
Loans & advances to customers was the primary contributor to the bank’s total assets after gaining 15 per cent from N2 trillion it opened the year to N2.3 trillion recorded in the first six months of 2015.
Deposit from customers’ however gained 13 per cent to N3.2 trillion from N2.8 trillion to leverage 19 per cent growth in total liabilities from N3.45 trillion to N4.07 trillion.
Other parameter from the balance sheet position is the 39 per cent increase in total assets that moved from N371.9 billion to N517 billion as at June 30, 2015.