Ecobank Posts Record Profit in 2024 Despite Nigeria Setback
TLDR
- Ecobank Group (BRVM: ETIT) reported a pre-tax profit of $658 million in FY2024, up 13% year-on-year, driven by growth in fee-based services and tighter cost control
- Net profit attributable to ETI shareholders rose 16% to $333 million, while earnings per share reached 1.36 US cents
- The Corporate and Investment Banking (CIB) segment accounted for nearly half of group revenue and $498 million in pre-tax profit
Ecobank Group (BRVM: ETIT) reported a pre-tax profit of $658 million in FY2024, up 13% year-on-year, driven by growth in fee-based services and tighter cost control. Net profit attributable to ETI shareholders rose 16% to $333 million, while earnings per share reached 1.36 US cents. Return on tangible equity (ROTE) jumped to 32.7%, one of the highest among African banks.
Revenue totaled $2.1 billion, with net interest income making up 56% and non-interest income 44%. The Corporate and Investment Banking (CIB) segment accounted for nearly half of group revenue and $498 million in pre-tax profit.
The group increased deposits by 17% and held cost-to-income ratio at 53%. Gross loans declined 5%, while Stage 1 loans fell 9%, reflecting a cautious lending strategy. However, the cost of risk rose to 1.79%, and foreign currency translation caused a $439 million loss, offsetting much of the net profit. No dividend was announced.
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Key Takeaways
Ecobank’s performance highlights diverging regional outcomes. The Nigerian subsidiary contributed just $3 million in net profit, down 87%, due to exchange rate volatility, high reserve requirements, and regulatory burdens. Cost-to-income rose above 79%, with a return on equity of only 1.1%. In contrast, Anglophone West Africa (AWA) and Central, Eastern, and Southern Africa (CESA) outperformed. AWA posted a 59% jump in net profit with 37.4% ROE, while CESA contributed strongly to consolidated performance, benefiting from improved loan portfolio quality. WAEMU remains the group’s profitability anchor, delivering $306 million in net profit on $705 million of net banking income. From a capital perspective, the group maintained solid ratios: CET1 at 11.4%, CAR at 15.8%, and a loan-to-deposit ratio of 51.4%. Ecobank’s shift toward digital services and fee-generating products is gaining traction, with active customers up 9% and banking card revenues rising 14%. Looking ahead, the group plans selective repositioning to reduce exposure to currency and sovereign risks.
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