Ecobank Transnational Incorporated Plc released its Q3 2022 Unaudited results for the period ended September 30^th, 2022.

Key Highlights

• Gross Revenue grew by 10.8% from N686.77bn to N761.28bn.
• Profit before tax stood at N168.69bn
• Profit after tax stood at N117.41bn
• Share Price Currently Stands at N10.10k

Ecobank Group reports audited nine months to September profit before tax of $401m on net revenues of $1.4bn Record ROTE of 21.0%, TBVPS of 4.36 US cents and Diluted EPS of 0.80 US cents.

Ade Ayeyemi, CEO, Ecobank Group, said: 

"We continued to deliver on our strategic priorities and are on track to meet full-year targets despite the complex operating environment. Group-wide return on tangible equity reached a record 21%, and profit before tax increased by 14%, or 48% at constant currency (i.e., excluding currency movements). These results reflect the resilience, strong brand and diversification of our pan-African franchise. We saw decent client activity in consumer and wholesale payments, trade finance and foreign currency markets. Additionally, despite inflationary pressures, we maintained a tight lid on costs, thereby improving our cost-to-income ratio to 56.3% from 58.3% in the previous year. 

The dampened economic outlook necessitated maintaining a sound balance sheet with adequate levels of liquidity and capital. As a result, our total capital adequacy ratio at 14.4% is well above our internal and minimum regulatory limits. Also, we hold sufficient gross impairment reserves that fully cover our non-performing loans. Moreover, we have fully repaid the five-year $400 million convertible debt we issued in September and October of 2017.

Ecobankers have worked extremely hard to serve our customers' financial needs, and I am proud of them. As always, we will passionately work towards realising our vision and remaining the bank that Africa and friends of Africa trust."

Financial and Business Highlights: 

• Record ROTE of 21.0%, well above cost-of-equity 
• PBT of $401m, up 14% or 48% at constant currency (i.e. excluding currency movements), primarily driven by strong revenue growth and disciplined cost and credit loss management, partially offset by a one-off non-conversion premium of $25m resulting from the repayment of the $250m convertible loan facility representing the first tranche of the $400m convertible debt issued in September 2017. Additionally, PBT was adversely affected by net monetary losses due to hyperinflation in Zimbabwe and South Sudan 
• Net revenue up 7% or 24% at constant currency to $1.4bn, reflecting strong net interest income and non-interest revenue growth and the continued benefits of diversification 
• Revenues in our Payments business grew 17% or $24m to $178m (13% of Group revenues), driven by merchant acquiring, cards, and wholesale payments 
• Profit available to ETI shareholders of $196m, up 7% and diluted EPS of 0.80 US cents, up 8% 
• Record cost-to-income ratio of 56.3% benefited from higher revenue growth and stringent cost containment measures in an inflationary environment 
• Customer deposits (end-of-period, EOP) decreased 2% or at constant currency increased 17% to $18.4bn 
• Gross customer loans (EOP) increased 5% or 23% at constant currency to $9.9bn 
• The non-performing loans (NPL) ratio improved to 6.4% compared to 6.9% a year ago and NPL coverage ratio increased to 112.5% from 91.2% a year ago 
• Tangible book value per share (TBVPS) of 4.36 US cents decreased 21% from a year ago primarily reflecting the negative impact of foreign currency translation reserves 
• The volume of digital transactions rose by 44% to $59.1 billion for the nine months to September 2022 
• ETI has repaid upon maturity the 5-year $400 million convertible debt issued in September and October 2017. ETI redeemed the debt at 110% of the principal amount, in line with the terms of the convertible debt agreements. The repayment did not affect ETI’s regulatory capital since the debt had been fully amortised for capital in 2021