Ecobank Transnational’s Profit Declines by as much as 64% in FY 2020

Ecobank Transnational Incorporated (ETI) has released its unaudited consolidated financial statements for the year ended December 31st, 2020. The report showed that both gross earnings and profit after tax declined by -2% and -64%, respectively.

See the Key Highlights below

• Gross earnings declined by 2% to N829.0 billion, down from N842,490,081 which was reported in FY 2019.
• Revenue for the period went up by 7% to N630.3 billion, compared to N586.9 billion which was reported in 2019.
• Operating income before impairment losses went up by 17% to N231.6 billion.
• Profit before tax and goodwill impairment went down by 14% to N126.4 billion.
• Profit before tax declined by 55% to N65.5 billion.
• Profit after tax also declined by 64% to N35.9 billion, as against N99.5 billion reported in 2019.
• In 2020, the company’s total assets went up 19% to N10,270.1 billion.
• Loans and advances to customers increased by 9% to N3,699.6 billion.
• Deposits from customers during the period under review went up by 23% to N 7,301.3 billion.
• Total equity also went up by 17% to N 805.1 billion.

You may download Ecobank Transnational’s unaudited consolidated financial statements for the 2020 financial year by clicking here.

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In a related development, ETI released a press statement this morning informing stakeholders that the global rating agency, Fitch Rating, had given its Nigerian subsidiary (Ecobank Nigeria Ltd) “a Long-Term Issuer Default Rating (IDR) of ‘B-‘ with a Stable Outlook, Viability Rating (VR) of ‘b-‘ and National Long-Term Rating of ‘BBB (nga)’”.

Fitch’s report, which was released on Thursday January 28, noted that Ecobank Nigeria’s IDRs are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR).