Ecobank Transnational Inc., Africa’s most geographically diverse lender, is operating with greater efficiency even amid a challenging macroeconomic environment and threat of a third wave of coronavirus infection as it delivers higher returns to shareholders.
As a result of an excellent execution of growth momentum by management and board of directors, the Pan African lender generated return on tangible equity of 16.10 percent in June 2021 from 15.20 percent a year ago
Diluted earnings per share (EPS) followed the same growth trajectory as it rose to $0.43 in June 2021 from $0.36 the previous year; In addition, profit before tax increased 23 percent to $210 million.
Notably, the lender’s pan-African business model continued to rise to the challenge as revenues grew 13 percent and 6 percent in its Commercial and Consumer businesses. It focuses on growing the trade business led to increased trade assets
Despite the negative impact of the pandemic on economic activities and the harsh regulatory environment, Ecobank, through excellent risk management strategy, saw an improvement in asset quality.
Non-performing Loans (NPLs) reduced to 7.40 percent in June 2021 from 9.80 percent as at June 2020.
The lender can thrive over the long haul, and it is profitable despite a low yield environment as net interest margin increased to 5.0 percent in the period under review from 5.10 percent the previous year.
As a result of cost discipline, cost to income ratio reduced to 58.70 percent in June 2021 from 64.10 percent the previous year, and achieving mid-50s CIR in the medium term.
Ecobank has successfully raised $350 million Tier 2 Sustainability Notes in June, the first-ever by a financial institution in sub-Saharan Africa and first to have a Basel III-compliant 10-year non-call 5 structure outside South Africa in 144A/RegS format.
The Bond was 3.6 times oversubscribed, demonstrating strong confidence in the Ecobank Group and our commitment to the sustainability of our communities and their social needs, according to Ade Ayeyemi, Ecobank Group CEO.
“I am deeply grateful to all stakeholders and must thank our clients for continuing to put their trust in Ecobank for their diverse banking needs.” Ayeyemi concluded,” said Ayeyemi.