Ecobank Group records $2.1 billion net revenue, $581 million profit before tax

Ecobank Group, the pan-African financial services Group, has published its full year audited results for 2023, indicating an impressive net revenue of US$2.1 billion, with $581 million profit before tax, despite the challenging operating environment that year.

Per the report, net revenue grew by 11% or 31% at constant currency to cross the $2 billion mark, whole profit before tax also increased by 8% or 34% at constant currency to reach the impressive $581 million.

A statement from Ecobank said the reported net revenue and profit before tax are the highest the bank has recorded since 2015.

Meanwhile, Ecobank generated a return on tangible shareholders’ equity of 24.9% over the period.

Commenting on the numbers, Ecobank Group CEO, 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 , 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 concluded: “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.”

Here are a few key highlights from the report:

• Net revenue exceeds $2.0B for the first time since 2015; demonstrating early proof of the Growth, Transformation and Returns strategy success.
• Strong ratios – Return on Tangible Shareholders Equity (ROTE): 24.9%, Cost-to-income: 53.9%, Loans-to-deposits: 55.4%, and Total Capital Adequacy (CAR): 15.0%
• Stable credit quality with Non-Performing Loans (NPL ratio) at 5.4% and cost-of-risk at 128 basis points
• Results reflect the resilience of Ecobank’s diversified business model, efficiency, and stability.

The full Ecobank Group 2023 audited results can be found here.

Source: Techfocus24