Ecobank Reports US$520 Million in Profits Before Tax on Net Revenue of US$2.3 Billion for the Year Ended 31 December 2014

24 April 2015
Content from a Premium Partner
Ecobank (Lome)
press release

Ecobank Transnational Inc. ("Ecobank" or "the Group"), parent company of independent pan-African banking group Ecobank, today reported its audited financial results for the year ended 31 December 2014.

Highlights are as follows:

Financial highlights:

  • Net revenue of US$2.3 billion, up 14% from 2013
  • Cost-income ratio of 65.4%, an improvement of 4.7 percentage points from 2013
  • Profit before tax of US$520 million, up 134% from the previous year
  • Profit after tax from continuing operations of US$398 million, up 155% from the previous year
  • Return on average equity of 16.5% compared to 6.9% in 2013
  • Basic earnings per share of 1.83 US$ cents compared to 0.60 US$ cents in 2013

Balance sheet growth:

  • Net customer loans of US$12.3 billion, up US$890 million, or 8% from the previous year
  • Customer deposits of US$17.4 billion, up US$947 million, or 6 % from the previous year
  • Tier 1 capital ratio under BaselI was 18.3% and total capital adequacy ratio of 20.4%

Business highlights:

Despite the macroeconomic headwinds, revenue growth benefited from the Group's diversified business model, as non-funded income increased US $218 million, or 23% year-on-year in 2014, accounting for 51% of net revenues

The Group's focus on driving efficiency is delivering results. Group-wide cost-income ratio improved consecutively in each quarter of 2014 and was 69.2%, 67.1%, 63.7%, and 62.3% in the 1Q'14, 2Q'14, 3Q'14, and 4Q'14, respectively Nigeria sustained its strong performance, delivering strong loan and revenue growth, a significant improvement in its cost-income ratio and a return on equity of 20.3% compared with 3.4% in 2013.

Commenting on these results, Group Chief Executive Officer Albert Essien said: "Our performance in 2014 underscored the benefits of our diversified business model. In what was a challenging operating environment, we remained focused on the importance of serving the financial needs of our customers across Middle Africa.

Revenues in 2014 increased 14% from 2013, and were in line with management's guidance. The focus on driving efficiencies in our various businesses paid off, with operating expenses up 6%, and cost-income ratio improving to 65.4% versus 70.1% in the previous year. Additionally, all our geographic clusters grew their revenues higher than operating expenses, and improved their cost-income ratios."

We grew customer loans by US $890 million, or 8%, and deposits by US $947 million, or 6 %, particularly in current account deposits, despite the adverse impact of the US dollar's appreciation against our key functional currencies.

Essien concluded: "We further strengthened our capital base with Group-wide Tier 1 capital increasing approximately US $981 million. Our Tier 1 capital ratio was 18.3% versus 13.0% in 2013, and total capital adequacy ratio was 20.4%. Going forward, we remain confident in the prospects for growth in Africa and share equal confidence in our dedicated staff. We are positioning our company for long-term success to achieve outstanding results for all our stakeholders."

Please cclick here to see the full report

Ecobank Group Earnings Presentation for the Year ended 31 December 2014

 

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