Ecobank’s tenacious focus on efficiency has paid off as cost-to-income ratio was down, further driving profit by 27 percent, analysis of the financial statement shows.
For the first six months of the year, Ecobank’s gross earnings rose by N175.05 billion from N153.60 billion the same period of the prior year (HY) 2013.
The most diverse lender in Nigeria is unrelenting in using expansion strategy to spur growth as it has started banking operations in Mozambique, an important addition to its South Africa cluster.
The improved efficiency stoked the translation of top-line performance to bottom-line growth, as profit before tax surged by 28 percent to N41.66 billion in HY 2014, compared with N32.67 billion as of HY 2013.
Profit after tax also followed the same trajectory as it spiked by 15 percent to N31.63 billion, compared with N27.52 billion as of HY 2013.
The focal point of the lender’s ability to record impressive results is the reduction of cost-to-income ratio to 68.10 percent in 2014, from 70.97 percent in 2013.
Loan-to-deposits ratio increased to 70.90 percent in HY 2014, from 66 percent in HY 2013, signifying the aggressiveness of the lender to increasing lending.
The creation of risk assets was also stellar as loans and advances surged by 28 percent to N2 trillion in HY 2014, compared with N1.57 as of HY 2013.
Total customer deposit was up by 18 percent to N2.82 billion in HY 2014, compared with N2.38 billion as of HY 2013.
In order to boost the net worth of customers, the bank launched premier banking service, which it says will suit individual lifestyle of customers in a collaborative way that provides additional value beyond everyday banking.
Ecobank has operations in 32 African countries, more than any other lender.
Total assets grew by 17 percent to N3.81 billion in the review period from N3.26 billion as of HY 2013.
Its share price closed at N16.50 on the floor of the Nigerian Stock Exchange, while market capitalisation was N283.8 billion.
Founded in 1985, Ecobank operates in France and 34 African countries, more than any other lender. It also has representative offices in Beijing, Dubai, and London. The bank’s share holding was N364.26 billion as of June 2014.
BALA AUGIE
