Ecobank hits tripled profit in FY2021

BY EMEKA EJERE

Pan-African lender, Ecobank Plc has posted highest annual growth in profit, recording a Profit After Tax (PAT) of N146.33 billion in 2021, a 334% increase year-on-year.

Profit Before Tax (PBT) stood at N195.7 billion, 194 per cent higher than that of 2020.

According to its audited financial statement submitted to Nigeria Exchange Ltd (NGX) on Tuesday, the bank also saw gross earnings climb 14 per cent to N956.4 billion within the period.

By this development, 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.

The lender’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.

Operating expenses grew moderately by 5 per cent to N423.7 billion, helping to keep the pressure of costs on earnings low in turn quickening the pace of profit growth.

The statement also revealed earnings per share of N1.49, a 47% decline from the N2.80 reported a year earlier in 2020.

However, Ecobank Plc last traded at N11.80 per share, with its market capitalization standing 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%.

“At 31 December 2021, gross loans and advances to customers was US$10,228 million (31 December 2020: US$9,798 million) against which total loan impairment amount of US$652 million (31 December 2020: US$558 million) were recorded, thus leaving a net loan balance of US9,576 million (31 December 2020: $9,240 million),” independent auditor Deloitte noted in its report.