Sunday, December 5, 2021

    In naira term, EcoBank profit dips 19% to N24.69 billion on impairs charges over financial assets

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    Pan-African lender Ecobank Transnational Incorporated (ETI), the Lome-based parent of Ecobank Nigeria Ltd has announced a profit after tax of $67.49 million in Q1 2020, 20% less than for the same period last year after a noticeable increase in an impairment charge on financial assets.

    In naira term, profit decline 19% to N24.69 billion, the bank said in its financial report to the Nigerian Stock Exchange (NSE) on Monday.

    The decline in profit was due to a 47% increase in impairment charges on financial assets to $42.23 million (N15.45 billion) although this was due to lower recoveries in the quarter while impairment losses on loans and advances and other financial assets declined.

    In dollar terms, Gross earnings for ETI down 3% to $532.5 million (in naira terms down 2% to NGN 194.9 billion) while Revenue rose 1% to $392.7 million (up 2% to NGN 143.7 billion).

    Net Interest Income of the lender rose 21% to $209.34 million after interest expenses dropped 13% and interest income grew by 5% in the period. On the other hand, Non-interest revenue suffered a 15% decline to $183.3 million following a 12% decline in fees and commission income, 16% decline in net trading income which offset a 21% decline in fees and commission expense and a 46% growth in other operating income.

    This resulted in a 1% growth of operating income to $392.66 million for the quarter while operating expense also rose 1% to $259.3 million.

    Operating profit before impairment losses and taxation in the quarter was 2% higher at $133.35 million.

    Profit before tax down 12% to $90.3 million (down 11% to NGN 33.0 billion) while Profit after tax down 20% to $67.5 million (down 19% to NGN 24.7 billion).

    Total assets down 2% to $23.2 billion (up 4% to NGN 8,973.7 billion) with Loans and advances to customers down 5% to $8.8 billion (up 0.4% to NGN 3,396.8 billion), meanwhile Deposits from customers down 1% to $16.1 billion (up 5% to NGN 6,223.9 billion) and Total equity down 4% to $1.8 billion (up 2% to NGN 702.7 billion)
    Shares of the lender declined 2.17% to N4.5 on the Lagos bourse on Monday according to Bloomberg data.

    Ecobank Transnational Inc. is a bank holding company. The Company, through its subsidiaries and branches, provides a full range of wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organizations, medium, small and micro businesses and individuals.

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