Ecobank announce 334% increase in profit to N146.3bn in 2021

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Ecobank Transnational Incorporated (ETI) yesterday announced 334 per cent increase in its profit for the audited financial year ended December 31, 2021 to N146.3billion as against N33.7billion profit reported in the financial year ended December 31, 2020. 

The audited results showed profit before tax gaining 174 per cent to N195.72billion in 2021 from N66.6billion reported in 2020.

Key factors that contributed to the group’s profits for 2021 financial year was 14 per cent increase in gross earnings to N956.39billion in 2021 from N841.14billion in 2020, while Other operating income rose significantly by 142 per cent to close 2021 at N19.1billion from N7.91billion in 2020.

As Total assets grew by 13 per cent to N11.7trillion in 2021, Loans and advances to customers up by 10 per cent to N4/06trillion in 2021.

In addition to balance sheet, Deposits from customers grew by 14 per cent to N917.9 billion in 2021 financial year.

The CEO, Ecobank Group. Ade Ayeyemi in a statement said: “The Bank made significant progress with its strategic priorities and delivered strong business and financial returns. We grew revenues, remained efficient, improved credit quality, strengthened the balance sheet and, for the first time since 2016, our Board has recommended the payment of dividends to shareholders. 

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“We increased profit before tax by $140 million to $478 million, after adjusting for the $164 million goodwill charge in 2020 and generated a record return on tangible shareholders’ equity of 19%. Net revenues were $1.8 billion, up 5%, benefiting from our diversified operating model and the continued focus on growing our trade finance, payments, fixed income, currencies, and commodities businesses. Furthermore, the efficiency ratio of 58.9per cent was the best in over a decade,” 

Ayeyemi said. “Credit quality continues to be particularly strong, with non-performing loans at a historic low of 6.2per cent of total loans and a reduction in the concentration risk of the credit portfolio. Moreover, we proactively built provision reserves to above 100% of non-performing loans. In addition, deposit growth was robust, increasing by $1.4 billion, or eight per cent, which significantly boosted liquidity and supported our modest loan growth. The investments in pivoting Ecobank as a credible enabler of economic activity for households, businesses and governments in Africa strengthened our optimism for 2022 and beyond, while complementing the expectation of a strong global economic recovery following the easing of Covid-19 restrictions.

“However, a word of caution following two critical global setbacks: IMF’s plan to cut global growth forecast, in a high inflation environment with about 60% of low-income countries in or at risk of ‘debt distress’; and Russia’s recent invasion of Ukraine. In this mix, African economies hang in the balance as contagion risks spread, US Fed and other developed-world central banks hike interest rates, energy prices soar, and geopolitical tensions exacerbate inflation and supply chain bottlenecks. 

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“Already the reverberations from these developments have forced some central banks in Africa to hike rates, as prices of goods and services soar and currencies are under pressure, all with security implications. In all this turmoil, we at Ecobank remain highly focused on conducting our business responsibly, committed to ESG principles, and discharging our investment in the Ecobank Foundation. 

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“We will continue to be aggressive in driving our strategic priorities, leading with technology, and serving our clients and communities. “ “Finally, I want to thank all Ecobankers for their unwavering commitment to realising our vision and remaining the bank that Africa and friends of Africa trust.” 


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