Ecobank reduces loans and advances 5%, makes 24% net profit
By Jeph Ajobaju, Chief Copy Editor
Ecobank Transnational Inc (ETI) posted N92 billion net profit in the first quarter ended March 2022 (Q1 2022), a rise of 25 per cent above N75 billion in Q1 2021, according to its financial results.
The results defied double-digit inflation buffeting businesses and households, on the back of rising economic activities – after surviving the pause forced by Covid in 2020 – which continued through 2021 and boosted banking services.
The profit was due to the ability of Ecobank to increase income as well as manage expenses in Q1 2022 compared with Q1 2021.
Net interest income was up 1 per cent to N239 billion from N237 billion in Q1 2021, despite a 25 per cent increase in interest expenses to N137 billion, which affected interest income.
Net trading income shot up 12 per cent to N71 billion and net investment income 88 per cent to N4 billion compared with Q1 2021.
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Further breakdown
The operating income of Ecobank slashed 8 per cent to N5.3 billion in Q1 2022, causing a 15 per cent rise in non-interest revenue to N197 billion, according to the financial results, per reporting by Nairametrics.
Total operating income amounted to N436 billion against N409 billion Q1 2021.
Operating expenses grew 4 per cent to N113 billion as a result of a slight change in staff expenses, and other operating expenses rose 6 per cent to N115 billion.
Total assets were down 4 per cent to close at N 11.3 billion
Loans and advances to customers declined 5 per cent to N3.9 billion
Ecobank traded at N12 as of 25 April 2022, with its market capitalisation worth N220 billion and earnings per share at N1.16.
