Ecobank declares pre-tax profit of N88.3 billion

Ecobank declares pre-tax profit of N88.3 billion

By Tunde Osho

Parent company of Ecobank group, Ecobank Transnational Incorporated (ETI) Plc witnessed a major come back in 2017 as it recovered from a loss of N33.7 billion in 2016 to close 2017 with a pre-tax profit of N88.3 billion.

Extracts of the audited report and accounts of ETI for the year ended December 31, 2017 showed improvements in the bottom-line performance of the company, in both Naira and Dollars terms. Nigeria accounts for the larger part of the operations of the Ecobank Group. ETI is listed on three West African stock exchanges including Bourse Régionale des Valeurs Mobilières (BRVM) in Abidjan, Ghana Stock Exchange in Accra and Nigerian Stock Exchange in Lagos.

The report showed that gross earnings rose by 15 per cent from N655 billion in 2016 to N763.6 billion in 2017. Profit before tax recovered to N88.3 billion in 2017 as against loss before tax of N33.7 billion in 2016. Net profit also stood at N70 billion in 2017 compared with a net loss of N52.6 billion. Earnings per share thus improved from a loss of N2.59 in 2016 to positive earnings of N2.22 in 2017.

Balance sheet analysis showed that total assets rose from N6.256 trillion in 2016 to N6.864 trillion in 2017. Loans to customers improved marginally from N2.82 trillion to N2.86 trillion. Customers’ deposits also increased by 13 per cent to N4.65 trillion in 2017 as against N4.12 trillion in 2016. Total equity grew by 24 per cent from N538 billion in 2016 to N665 billion in 2017.

Group Chief Executive Officer, Ecobank Transnational Incorporated (ETI) Plc, Mr. Ade Ayeyemi, said the 2017 financial performance was an encouraging improvement on 2016 as all actions to improve the company’s efficiency were productive.

According to him, customers also showed their confidence in the company’s value proposition by giving it more of their deposits, which grew by 13 per cent.

He noted that the progressive moves to right-size and simplify the company’s businesses were designed to allow it to serve its customers better and create more sustainable value generation.

According to Ayeyemi, “2017 also marked two years into our five-year ‘Roadmap to Leadership’ and digitisation strategy through which we have made real strides in fixing the foundations on which our businesses can grow. Among other things, we have reorganised our businesses, overhauled our risk management, improved our controls and systems, adopted technology to drive efficiency, and we are addressing capital allocation.”

“In 2018 and beyond our focus will be on one thing: relentless execution. We will use all our resources to support our mission to serve our customers better, run our businesses more efficiently, and generate returns that meet and exceed the cost of equity,” Ayeyemi said.