ECOBANK TRANSNATIONAL INCORPORATED (ETI) HALF-YEAR EARNINGS REPORT
Earnings Overview:
- Half-Year Earnings: N311 billion, up 196% from N105 billion in H1 2023.
- Interest Income: Increased by 175% to N1.2 trillion from N445 billion in the previous year.
- Interest Expense: Rose by 160% to N464 billion from N178 billion due to the high-interest rate environment.
Interest Rate Context:
- The Monetary Policy Rate (MPR) has been increased by 800 basis points in 2024, with the latest adjustment in July raising it to 26.75%.
Financial Breakdown:
- Gross Earnings: Rose by 179% to N1.78 trillion from N667 billion.
- Trading Income: Increased by 125% to N230 billion.
- Net Interest Income: Declined by 142% to N941 million from N2.2 billion.
- Fee and Commission Income: Grew by 186% to N384 billion from N134 billion.
- Profit Before Tax: Increased by 195% to N443 billion from N150 billion.
Operating Expenses:
- Operating Expenses: Increased by 165% to N728 billion from N274 billion.
Balance Sheet Highlights:
- Total Assets: Increased by 92.5% to N38.5 trillion.
- Loans and Advances: Up by 75% to N14 trillion from N8 trillion.
- Deposits: Increased by 78% to N26.2 trillion.
Cash Flow:
- Net Cash Flow from Operating Activities: Rose to N509 billion from N21.9 billion.
- Net Cash Flow Used in Investing Activities: Dropped by 67% to N19 billion from N58 billion.
- Net Cash Flow from Financing Activities: Improved, though still negative, at N75.5 billion outflow compared to N34.3 billion.
Cash and Cash Equivalents:
- End-of-Period Cash and Cash Equivalents: Increased to N5.5 trillion from N2.2 trillion in the previous year.
This impressive financial performance highlights Ecobank's significant growth and robust operational adjustments in response to the high-interest rate environment.
Earnings Overview:
- Half-Year Earnings: N311 billion, up 196% from N105 billion in H1 2023.
- Interest Income: Increased by 175% to N1.2 trillion from N445 billion in the previous year.
- Interest Expense: Rose by 160% to N464 billion from N178 billion due to the high-interest rate environment.
Interest Rate Context:
- The Monetary Policy Rate (MPR) has been increased by 800 basis points in 2024, with the latest adjustment in July raising it to 26.75%.
Financial Breakdown:
- Gross Earnings: Rose by 179% to N1.78 trillion from N667 billion.
- Trading Income: Increased by 125% to N230 billion.
- Net Interest Income: Declined by 142% to N941 million from N2.2 billion.
- Fee and Commission Income: Grew by 186% to N384 billion from N134 billion.
- Profit Before Tax: Increased by 195% to N443 billion from N150 billion.
Operating Expenses:
- Operating Expenses: Increased by 165% to N728 billion from N274 billion.
Balance Sheet Highlights:
- Total Assets: Increased by 92.5% to N38.5 trillion.
- Loans and Advances: Up by 75% to N14 trillion from N8 trillion.
- Deposits: Increased by 78% to N26.2 trillion.
Cash Flow:
- Net Cash Flow from Operating Activities: Rose to N509 billion from N21.9 billion.
- Net Cash Flow Used in Investing Activities: Dropped by 67% to N19 billion from N58 billion.
- Net Cash Flow from Financing Activities: Improved, though still negative, at N75.5 billion outflow compared to N34.3 billion.
Cash and Cash Equivalents:
- End-of-Period Cash and Cash Equivalents: Increased to N5.5 trillion from N2.2 trillion in the previous year.
This impressive financial performance highlights Ecobank's significant growth and robust operational adjustments in response to the high-interest rate environment.