Ecobank Nigeria Posts $25m as Profit

Ecobank Nigeria Posts $25m as Profit

Ecobank Nigeria Limited posted $25 million as profit in the first nine months of the financial year 2023, according to a regulatory filing by the Pan African lender, Ecobank Transnational Incorporation Plc.

Detail on its regional business performance showed that its banking subsidiary in Nigeria achieved a pre-tax of $25 million in the first nine months of 2023. This translated to 11% decline when compared with $28 million in the first nine months of 2022.

 The bank said its annualised return on equity (ROE) for the first nine months was 5.5%, which is an improvement from 4.6% in the prior-year period.  Ecobank reported a net revenue increase of 3% to $190 million, benefiting primarily from the net impact of higher market rates and loan growth.

The local lender also reported that its net interest income increased by 22% to $107 million, benefiting primarily from higher market rates and loan growth, partially offset by an increase in funding costs partly due to the impact on the cost of funds from high deposit cash reserve requirements (CRR).

Non-interest revenues came at $83 million in the period, representing a 14% year-on-year decline or an increase of 21% at constant currency, with increased market liquidity and volatility driving client-driven FC and fixed-income sales, partially offset by a decrease in merchant acquiring fees.

Detail showed that non-interest revenue in the second quarter included approximately $20 million in one-off non-cash adjustment on loans that Ecobank Nigeria previously sold to Nigeria’s Asset Management Corporation of Nigeria (AMCON). 

“Helping also to boost non-interest revenues was a $20 million one-off non-cash adjustment on loans that Ecobank Nigeria previously sold to Nigeria’s Asset Management Corporation of Nigeria”, it said in the note to the account.

In the period, the bank’s operating expenses were $140 million, representing a 3% decline or an increase of 28% at constant currency, predominantly driven by continued increases in the general prices of goods and services.

Ecobank Nigeria’s cost-to-income ratio improved to 73.6% from 77.9% a year ago. The period’s net impairment charge on loans was $25 million compared with $13 million a year ago, reflecting additional impairment charges on specific loans. 

#Ecobank Nigeria Posts $25m as Profit Naira Devaluation Deepens Economic Crisis in Nigeria