Foremost Pan-African bank, Ecobank Transnational Incorporated, has released its first quarter (Q1) 2021 financial statements. Business Elites Africa obtained the report from the Nigerian Stock Exchange website and hereby brings you a quick summary of the key indicators. See below:
- The bank’s gross earnings for the period increased by 10% to N214.3 billion, up from N194.7 billion that was reported in Q1 2020.
- Revenue also went up by 15% to N164.6 billion, from N143.7 billion in Q1 2020.
- Operating income before impairment losses increased by 37% to N67.0 billion, up from N48.79 billion.
- Profit before tax for the period stood at N40.3 billion, indicating a 22% increase when compared to N33 billion that was reported in Q1 2020.
- Profit after tax also increased by 23% to N30.5 billion, up from N24.7 billion in Q1 2020.
- Total assets went up 1% to NGN10,442.3 billion.
- Loans and advances to customers in Q1 2021 was down by1% to N3,644.3 billion.
- Deposits from customers was slightly up by 1% to N7,378.9 billion.
- Total equity was down by 2% to N796.8 billion.
Meanwhile, the company’s Chief Executive Officer, Ade Ayeyemi, commented on the financial statement stating that “the firm’s performance in the first quarter was strong, despite the continuing challenging operating environment. Revenues increased 4% to $409 million, and we earned $100 million in profit before tax, an increase of 11% year-on-year. Earnings per share grew by 8%, and return on tangible equity was 15.7%. These results reflect the benefits of our diversification and the sustained focus on our strategic priorities.
“We were also pleased with the underlying performance of our businesses. Our Corporate and Investment Bank delivered a 4% increase in revenues, driven by efficient balance sheet utilisation and support for clients with structured financial solutions. Revenues grew 13% in Commercial Bank, buoyed by increased cash management fees as pandemic-induced restrictions were eased and client activity increased. However, the consumer continues to be disproportionately affected, which contributed to revenues in Consumer Bank declining by 3%. But we are encouraged by the gradual pick-up we are seeing in consumer spending activity. We continued to be unrelenting in our efficiency goals and improved further our cost-toincome ratio from 62.7% in the fourth quarter of 2020 to 59.3% in the current quarter, the lowest in a decade. We continued to build our impairment reserves on nonperforming loans in line with our goal of achieving a reserve coverage close to 100% in the near term. Consequently, the coverage ratio improved to 81.5%, from 74.5% in the fourth quarter of 2020”
You may download and read the full financial statement by clicking right here.
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