Ecobank released its financials for the full year ended December 2021 which showed a massive 334 percent increase in profit, the highest in its six year financials after recovery from the COVID pandemic.
Profit
Ecobank’s financial books showed profitability surged to N146.3 billion in December 2021, a massive 334 percent increase compared to N33.7 billion in December 2020.
Net cash flow from operating activities
The net cash flow from operating activities, the cash flow which depicts the cash generating abilities of a company’s core business activities dropped to N354.5 billion in December 2021 from N1.06 trillion in the preceding year.
Trading income on securities dipped to N11 billion in December 2021 from N30.87 billion in December 2020.
Net cash flow from financing activities
Cash flow from financing activities, a section of a company’s cash flow statement, which shows the net flows of cash that are used to fund the company stood at N135.6 billion in December 2021 compared to a loss of N52.84 billion in the year ago period.
Gross earnings
Ecobank grew its gross earnings to N956.4 billion in the year ended 2021 compared to N841 billion in the year ended 2020.
Net Interest Income
The bank net interest income increased to N386.7 billion from N346.6 billion in the period under review.
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Net interest income is a financial performance measure that reflects the difference between the revenue generated from a bank’s interest-bearing assets and the expenses associated with paying on its interest-bearing liabilities.
Also, Interest expense jumped to N216.6 billion compared to N184.61 billion in the comparable periods. Interest income increased to N603.3 billion in December 2021 from N531.2 billion in December 2020.
Taxation
Taxation increased to N50 billion from N34.13 billion in the period under review while Current income tax increased to N64.7 billion from N53.7 billion in the comparable period.
Deferred income tax declined to N14.63 billion in December 2021 compared to N19.6 billion in December 2020.
Fee and commission income
Fee and commission income surged to N204.8 billion from N162.2 billion in the period under review, it is the revenue taken in from account-related charges.
The bank said in a statement “fees and commissions are generally recognised on an accrual basis when the service has been provided and considering the stage of completion, fees charged for servicing a loan are recognised in revenue as the service is provided, which in most instances occurs monthly when the fees are levied.”
Total assets
Eco bank’s total assets jumped 12.6 percent to N11.69 trillion compared to N10.38 trillion.
Other operating income
Eco bank’s other operating income increased to N19 billion from N8 billion. Other operating income includes revenue from all other operating activities which are not related to the principal activities of the bank.
Net trading income
The net trading income dipped to N121 billion in December 2021 compared to N132.3 billion in December 2020.
