Diversified business model, efficiency, others lift Ecobank Group’s PBT to $581m

Amid harsh operating environment, Ecobank Group has posted a Profit  Before Tax (PBT) of $581 million in its 2023 operations, representing 8 per cent or 34 per cent rise when compared to $540 million achieved in the corresponding period in 2022.

The bank’s audited for the period ended December 31, 2023 also showed  net revenue of $2.1 billion up from $1.86 billion recorded within the same period  in 2022 representing11 per cent or 31 per cent growth as net revenue exceeds $2.0 billion for the first time since 2015; demonstrating early proof of the Growth, Transformation and Returns strategy success.

It also attributed the improved performance to the resilience of Ecobank’s diversified business model, efficiency, and stability.

Its Return on Tangible Shareholders Equity (ROTE) stood at 24.9 per cent, compared to 21.1 per cent posted in the previous year while Cost-to-income stood at 53.9 per cent.

In addition, its Loans-to-deposits: 55.4 per cent with Total Capital Adequacy (CAR) of 15.0 per cent. The banks also achieved stable credit quality with Non-Performing Loans (NPL ratio) of 5.4 per cent and cost-of-risk settling at 128 basis points.

Reacting on the performance,  the Chief Executive Officer of Ecobank Group, Jeremy Awori said: “Our encouraging results reflect a re-energised commitment to putting our customers first and the work we have started on revenue diversification, growth, and low-cost deposit mobilisation.

For instance, our Consumer and Commercial banking businesses increased their share of group-wide revenues and profits.

“In addition, we continued our proactive approach to disciplined cost management, aimed at eliminating unproductive and wasteful costs and redirecting savings into investments in marketing and branding, sales capabilities, and technology that should drive returns in the future.

“Since finalising our GTR strategy, we have moved quickly to take the necessary steps toward winning with our customers. In January, we unveiled our new brand campaign, ‘A BETTER WAY| A BETTER AFRICA,’ at the TotalEnergies CAF Africa Cup of Nations in Côte d’Ivoire 2023, in which Ecobank was a key sponsor. The campaign underscored our commitment to empowering our customers and showcased our digital network and continent-wide connectivity to help them meet their financial goals,” Awori added.

“Further, to set us up for success, we made changes to our structure and executive management team to make us more effective. Martin Miruka joined us as Group Executive Transformation, Enablement and Customer Experience, a newly created role to help deliver the strategic imperatives of GTR.
 
“Anup Suri joined us as Group Executive for our newly combined Consumer & Commercial Banking businesses. Abena Osei-Poku joined us as Managing Director of Ecobank Ghana and Regional Executive of Anglophone West Africa, replacing Daniel Sackey upon retirement.

“Michael Larbie joined us as Group Executive Corporate and Investment Banking, replacing Eric Odhiambo, retiring at the end of April. Thierry Mbimi joined us as GE Internal Audit and Management Services, replacing Moustapha Fall, who left in late 2022. These hires are critical to our future and will complement the talent here at Ecobank. They all bring a wealth of global and Africa experience in the financial services sector.

Awori added: “I want to thank the Board for its guidance and support and all Ecobankers for their dedication to our customers and our pan-African purpose. We are confident in the steps we take under our GTR strategy to win with our customers and deliver the returns our shareholders expect of us.”