Ecobank Group Plc, a financial institution in financial services sector announced 27.6% gross earnings growth in Q1 2023 Results.
Gross Earnings grew by 27.6% from N245.41bn to N313.18bn. Profit before tax stood at N57.69bn Profit after tax stood at N40.41bn Share Price Currently Stands at N11:00k
Ecobank Reports First Quarter 2023 Profit Before Tax Of $125 Million, Diluted Eps Of 0.26 US Cents on Net Revenue of $483 Million
Strong underlying 1Q results reflect the resilience of Ecobank’s diversified business model, efficiency, and stability. ROTE: 19.5%, Cost-to-income: 57.3%, Loans-to-deposits: 57%, and CET1 ratio: 9.6% Pre-provision, pre-tax operating profit up 13% to $207m Declining NPL ratio: 5.2%; Cost-of-risk: 62 basis points
Jeremy Awori, CEO of Ecobank Group, said:
“Our results for the first quarter of 2023 showed progress despite the challenging global and regional macroeconomic environment. Once again, we have demonstrated the resilience of our pan-African diversified business model, efficiency, balance sheet stability, deep customer relationships and the hard work of our 14,000+ Ecobankers. Net revenues grew 11%, or 34% if you strip out the effects of translating the performances of our affiliates in their local currencies into US dollars, with revenue momentum robust across all our businesses. As a result, we generated a return on tangible shareholders’ equity of 19.5%. Furthermore, continued efficiency gains catalysed the growth in pre-provision, pre-tax operating profits by 13%, a key metric for assessing the Company’s earnings power. However, profits before tax at $125 million were flat due to currency movements but up 31% at constant currency.
“Our balance sheet is stable, liquid and resilient. After a strong fourth quarter, average deposits were up across businesses, albeit modestly, with about 82% of deposits within more stable current and savings accounts. In addition, the non-performing loans ratio at 5.2% continues to improve, and our total capital adequacy ratio of 14.2% should provide stability in the current challenging macroeconomic environment,” Awori added.
We are advancing with formulating our strategic roadmap for the future, which we plan to communicate to all in the second half of the year. At the same time, we are executing important short-term initiatives to drive growth and returns as we perfect our strategies for harnessing identified mature opportunities across our markets. We will continue to drive with earnest actions, including group-wide expense discipline, continued generation of low-cost deposits to reduce funding costs further, enhanced alignment of resource allocation and returns, precision in execution, and continued balance sheet and returns optimisation. “Awori concluded.