Nigeria: Ecobank Posts Record Profit in 2024 Despite Nigeria Setback

31 March 2025
Daba Finance (Abidjan)

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.

Daba is Africa's leading investment platform for private and public markets. Download here

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.

Read the original article on Daba Finance.

Tagged:
Copyright © 2025 Daba Finance. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 110 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.