Nigeria: Ecobank’s Jan-to-Sept Profit Jumps 12% to N117 Billion On Growth Across Key Income Sources

Interest income and non-interest income respectively saw 9 per cent and 12 per cent surge.

Lome-based Ecobank Transnational Incorporated, which has Nigeria as its biggest operation of the 36 markets where it has footprints on the continent, had a moderate advance in bottomline for the year to September driven by growth in interest income as well as fees and commission income, its earnings report showed on Thursday.

Those two almost always contribute most to the income pool of Nigerian lenders.

At N761.3 billion, the group generated 11 per cent more in gross earnings compared to the same time last year, according to the financials posted on the Nigerian Exchange’s website.

Interest income and non-interest income respectively saw 9 per cent and 12 per cent surge.

Revenue drew partial strength from other operating income which, at N16.7 billion, accelerated by 44 per cent, while trading income was 9 per cent up, climbing to N93.2 billion.

Africa’s fifth biggest lender Nedbank Group, headquartered in Durban, South Africa, is ETI’s biggest shareholder, holding a 28.9 interest in the financial institution.

The amount the firm provisioned for loans whose chances of being repaid by borrowers have been impaired by persistent default slightly fell 6 per cent to N56.1 billion compared to a year ago.

Ecobank incurred a net monetary loss in the sum of N14.4 billion in consequence of the reverberations of hyperinflation in the markets of its operation just as non-conversion premium on bonds stood at N10.5 billion compared to last year when it incurred no such cost, both weighing on profit.

Last month, Ecobank announced it had repaid holders of its $400 million convertible debt as the bond came to maturity.

It paid investors 110 per cent of the principal sum to redeem the debt as none of them indicated interest to convert the security to ordinary shares.

Profit before tax quickened by 17 per cent to N168.7 billion, while net profit jumped to N117.4 billion, adding 12 per cent.

Ecobank announced it has appointed a new CEO, Jeremy Awori, to replace Ade Ayeyemi, who would be retiring on attaining the age of 60.

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