Ecobank CI Sees Net Profit Rise 6.2% in First-Half 2024

AFRICAN STOCKS AND FINANCESeptember 23, 2024 at 3:04 PM UTC

TLDR

Ecobank Côte d'Ivoire (ECOC) reports 6.2% increase in net profit to 25.39 billion FCFA ($43 million) in first half of 2024.
Growth driven by 24.1% reduction in net cost of risk, reflecting strong credit risk monitoring and improved recovery efforts.
Net banking income rises by 10.6%, reaching 58.79 billion FCFA in 2024, driven by increases in net interest margin and commissions.

BRVM-listed Ecobank Côte d'Ivoire (ECOC), the Ivorian subsidiary of the Ecobank Group, reported a net profit of 25.39 billion FCFA ($43 million) in the first half of 2024, marking a 6.2% increase from the 23.92 billion FCFA recorded at the end of June 2023.

This growth was largely driven by a 24.1% reduction in the net cost of risk, reflecting strong credit risk monitoring and improved recovery efforts. While customer receivables grew by 7.7% to 1,014.59 billion FCFA, deposits contracted by 2.7%, reaching 1,282.96 billion FCFA.

The bank’s net banking income increased by 10.6%, from 53.16 billion FCFA in the first half of 2023 to 58.79 billion FCFA in 2024, due to a 3.2 billion FCFA rise in net interest margin and a 2.4 billion FCFA increase in commissions.

Key Takeaways

Ecobank CI’s solid financial performance, marked by rising net profits and improved credit risk management, continues to drive investor confidence. Despite a 5.62% stock price correction, the stock has achieved a year-to-date performance of 23.53%. The bank is poised to benefit from Côte d'Ivoire’s projected 6.8% economic growth, which could stimulate demand for banking services, particularly credit. Investors remain optimistic about the bank’s future outlook given its continued financial resilience and market potential.

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