Ecobank Ivorian Unit Reports 6% Growth in Nine-Month Profit
TLDR
- Ecobank Côte d'Ivoire (ECOC) sees a 6.1% rise in net profit, reaching 38.5 billion FCFA in the first nine months of 2024.
- Bank attributes performance boost to a 61.5% decrease in net cost of risk, with liquidity challenges partially offset by a 6.9 billion FCFA increase in net banking income.
- Despite a slight decrease in total assets and deposits, the bank achieved an 8.1% growth in pre-tax income and improved portfolio health by reducing bad debts by 18%.
Ecobank Côte d'Ivoire (ECOC) posted a 6.1% increase in net profit for the first nine months of 2024, reaching 38.5 billion FCFA, up from 36.3 billion FCFA the previous year. This performance is attributed to a 61.5% reduction in net cost of risk, now standing at 1.5 billion FCFA, reflecting enhanced asset quality and improved non-performing loan coverage.
Despite liquidity challenges, the bank's net banking income rose by 6.9 billion to 86.6 billion FCFA, driven by a 7.5% increase in net interest margin and a 10.8% boost in non-interest income. Pre-tax income also grew by 8.1% to 45.02 billion FCFA. Total assets increased slightly by 0.8%, reaching 1,754.77 billion FCFA.
Deposits contracted by 1.6% due to a 9.0% reduction in remunerated deposits, offset by a 3.1% rise in non-remunerated deposits. The bank also reduced its bad debts by 18%, enhancing its portfolio health.
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Key Takeaways
Ecobank Côte d'Ivoire’s financial results underscore prudent risk management and strategic focus on asset quality. The significant reduction in cost of risk highlights the bank’s success in maintaining a high-quality loan portfolio, which has bolstered profitability despite a tight liquidity environment. Ecobank CI shares have reflected this strong performance, rising 26.4% since the beginning of 2024, closing at 8,595 FCFA on October 30 after hitting a historic high. The share price trajectory indicates investor confidence in the bank's fundamentals and growth strategy, with market watchers closely monitoring its risk management approach as liquidity challenges continue.
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