Ecobank’s Profit Rises To N146 billion In FY 2021, A 334% Growth, It’s Highest Ever
The Oasis Reporters
March 30, 2022
…records highest ever annual growth in profit
…earns N603.37 billion from its lending business.
The 2021 full-year financial result of Ecobank Plc reveals that profit for the Nigerian lender with a West African footprint peaked at N146.33 billion in 2021, thus reflecting a 334% increase year-on-year.
Per share earnings are N1.49, a 47% decline from the N2.80 reported a year earlier in 2020. Ecobank Plc has been able to double its profits in 4 years since hitting N69 billion in 2017 with the profit now touching roughly N146 billion.
In a statement released by the bank revealed that in FY 2021, net interest income grew by 12% from N346.61 billion to N386.71 billion in the current period. The Bank’s profit performance for FY 2021 was on the back of all margin growth as income from interest, investment and fees and commission income all appreciated year on year.
Summary of its results for FY 2021 shows an earning of N603.37 billion from its lending business as Interest income grew by 14% from N531.22 billion.
Despite a 2.76% spike in loan losses, operating profit after impairments still appreciated by 35.57% to stand at N206.51 billion.
Ecobank Plc, however, grew its income from commission and fees rising 26.25% to N204.79 billion year on year while generating a total of N121.04 billion in net trading income on securities.
This represents a 9.00% decrease year on year.
Net gains from instrument securities grew by 19.73% to be recorded as N7.60 billion. Net Trading income, however, declined by 8.50% to N121.04 billion.
Ecobank’s credit-related fees and commission raked in N59.13 billion, representing a 21.77% rise from N48.56 billion in 2020. This suggests that the bank has improved in its utilization of its credit application channels and the overall delivery of financial services to its customers.
In addition, the group also grew its deposits from customers by 14.14% to N8.36 trillion while its total assets are now N11.69 trillion, almost twice the bank’s total assets in 2017. Net assets rose by 13.08% to N917.90 billion.
Ecobank Plc last traded at N11.80 per share and its market capitalization stands at N216.52 billion as of Tuesday, March 29, 2022. Year-to-date performance shows that the share price of the company has appreciated by 35.63%.
Additional reporting: Nairametrics
