Record Profit For Ecobank Group

Ecobank Group, one of Africa's leading pan-African banking institutions, has unveiled its audited financial results for the full year 2024, showcasing a banner year marked by a record profit before tax of 658m. The results, announced on 31 st March, reflect a potent combination of strategic execution, operational efficiency and resilience amid a challenging economic landscape across the continent. With net revenue reaching 2.1bn and earnings per share climbing to 1.36 US cents, Ecobank has solidified its position as a powerhouse in African banking, delivering a remarkable return on tangible equity ROTE of 32.7, up from 24.9 in 2023.

The 2024 performance indicates the success of Ecobank's growth, transformation and returns GTR strategy, a multi-year roadmap designed to harness the bank's sprawling geographic footprint, enhance its profitability and drive innovation. From a 16 surge in attributable profit after tax to shareholders of Ecobank Transnational Incorporated ETI, reaching 333m, to a tangible book value per share increase of 4 to 4.20 US cents, the numbers tell a story of a bank hitting its stride.

Ecobank's financial success in 2024 was propelled by an 18 increase in net revenue at constant currency, reaching 2.1bn. This growth was underpinned by a stable and recurring stream of fee and commission income, which rose to 25.1 of total revenues from 23.5 the previous year. This shift highlights Ecobank's ability to diversify its income streams beyond traditional interest-based revenue, a critical factor in navigating the volatility of African markets.

Equally notable was the bank's disciplined approach to cost management. Operating expenses declined by 0.4 year-on-year a feat achieved through strategic cost-containment programmes rolled out across its operations. This reduction contributed to a record-low cost-to-income ratio CIR of 53, down from higher levels in prior years and signalling operational efficiency that rivals some of the best-performing banks globally.

The shift in deposit mix further bolstered Ecobank's financial stability. By prioritising low-cost current and savings accounts CASA, the bank improved its CASA ratio to 86.4 from 83.4 in 2023. This strategic pivot not only reduced the cost of funds but also deepened customer relationships, illustrated by a 17 increase in customer deposits at constant currency, reaching 20.4bn. The growth in deposits reflects rising trust in Ecobank's brand, an expanding customer base, and higher balances in current accounts, a testament to the bank's focus on customer-centric banking.