Ecobank posts N267.3bn pre-tax profit in Q1 2025
Agency Report
Ecobank Transnational Incorporated (ETI) has recorded a pre-tax profit of N267.305 billion (approximately $174.9 million), representing a robust 32.68 per cent year-on-year (YoY) increase in its first quarter report.
Gross earnings for the pan-African banking group surged by 16.59 per cent YoY to N1.054 trillion, signaling continued momentum across its diversified revenue base.
The bank’s net revenue climbed to $516 million, up 4 per cent, or 13 per cent in constant currency.
Commenting on the group’s performance, Jeremy Awori, Chief Executive Officer of Ecobank Group, noted: “We achieved a return on tangible shareholders’ equity (ROTE) of 30.5 per cent.
“Our profit after tax attributable to shareholders rose to $84 million, an increase of 22 per cent — or 39 per cent in constant currency. Our revenue streams continue to diversify, with core fee and commission income now contributing 25.2 per cent.”
At the heart of Ecobank’s strong showing was a significant rise in core operating income, largely driven by the strength of its interest-generating and fee-based activities.
Interest income remained a major contributor, accounting for 66 per cent of total earnings despite a slight dip in its proportion.
Notably, investments in government securities and treasury bills grew by 10 per cent YoY, providing stable income amid cautious lending trends.
On the funding side, customer deposits increased by N1.5 trillion, yet interest expenses rose only 10.56 per cent YoY, helping to improve the bank’s net interest margin. The overall cost of funds dropped marginally, a healthy indicator of balance sheet efficiency.
“Our margins remained stable,” Awori added, “supported by a conscious reduction in the cost of customer deposits, driven by our successful strategy to generate low-cost funding. Deposits rose by $1.1 billion in the first quarter, and improvements in our credit portfolio were evident across our cost of risk, NPL ratio, and coverage ratios.”
Ecobank’s efforts in credit risk management also paid off, as loan impairment losses fell by 32 per cent, significantly supporting the bottom line and contributing to a one-third rise in operating profit.
Shareholders’ funds rose by 7.91 per cent YoY to N2.99 trillion but still accounted for just 6.74 per cent of total assets — underscoring ETI’s reliance on leverage and deposits for growth.
Despite the strong operational and financial performance, ETI’s share price stood at N28.00 as of May 2, 2025, reflecting a 7.14 per cent year-to-date decline. This suggests investor caution amid broader market conditions or sector-specific headwinds.
Ecobank’s first-quarter performance underscores its disciplined approach to growth — balancing profitability with liquidity and risk control, while leaning into fee-based income and low-cost funding strategies.
