ETI’s total assets drops by 4% in Q1

Ecobank Transnational Incorporated (ETI) Plc has announced four per cent drop in total assets to N11.27trillion as of first quarter ended March31, 2022 from N11.69trillion reported in full year ended December 31, 2021.

The group in its profit & loss figures announced 26 per cent increase in profit to N38.3billion in its first quarter ended March 31, 2022 results from N30.49billion reported in first quarter ended March 31, 2021.

The pan-African bank grew profit before tax by 29 per cent to N100.32billion in Q1 2022 from N40.34billion in Q1 2021.

CEO, Ecobank Group, Ade Ayeyemi, in a statement said: “We delivered strong 1Q 2022 results with profit before tax increasing by 25per cent to $125 million, diluted earnings per share up 29per cent to 0.27 US cents and net revenue growth of seven per cent to $436 million. Returns on tangible shareholders’ equity of 18.9per cent was a record compared to 15.7per cent a year ago.

“We achieved these results in a difficult operating environment characterised by the strengthening of the US dollar against our operating currencies, high inflation, high interest rates and tight labour markets across Africa as the Russia-Ukraine conflict continued to take its toll. Despite these challenges, we continued to support our customers effectively, which paid off as our businesses grew their revenues and profits.

“These were driven by trade, cash management, FICC and payments, while we also achieved modest loan growth with support from higher interest rates.

“As a result, pre-tax profits increased by 13 per cent, 26 per cent and 59 per cent in our Corporate and Investment Banking, Consumer Banking and Commercial Banking businesses respectively.

“It is important to note that it is the bold strategic decisions and our investments in people, systems and processes over time that have resulted in the record returns for our shareholders today. We are unrelenting in our focus on driving returns towards our medium-term goal of approximately 20 per cent.”

“We have continued to run the company with expense discipline, while growing earnings and investing in improvements to the customer experience.

“So, despite increased expenses – largely due to inflation – our cost-to-income ratio improved to 58 per cent, compared to 59.3 per cent a year ago.

“Our credit portfolio is in good shape, and we continue to drive down the non-performing loans ratio towards our near-term goal of under six per cent while we maintain adequate impairment reserves as a buffer for possible downside risks.

“We have ample liquidity on our balance sheet and continue to generate healthy levels of customer deposits while maintaining satisfactory levels of capital above internal and regulatory minimums. As a result, we are confident in the company’s positioning for growth, and will continue to invest in our digital offerings and payment capabilities while enhancing our core technology.

“In summary, we are pleased with our progress, and I would like to thank our customers for their trust, and all Ecobankers for their hard work towards realising our vision and remaining the bank that Africa and friends of Africa trust.”