Ecobank Group Posts 22% Jump in Q1 Net Profit on Higher Revenue

AFRICAN STOCKS AND FINANCEMay 22, 2025 at 10:03 AM UTC

TLDR

Ecobank Transnational Inc. (BRVM: ETIT), West Africa's largest lender, reported a 22% increase in first-quarter net profit as revenue rose
Net profit attributable to shareholders climbed to $83.8 million from $68.7 million in Q1 2024. Consolidated net profit rose 17% to $122.5 million from $105.0 million.
Operating expenses remained flat at $266.5 million while gross operating profit jumped 9% to $249.8 million

Ecobank Transnational Inc. (BRVM: ETIT), West Africa's largest lender, reported a 22% increase in first-quarter net profit as revenue rose and the bank improved its cost-to-income ratio to a record low. Net profit attributable to shareholders climbed to $83.8 million from $68.7 million in Q1 2024. Consolidated net profit rose 17% to $122.5 million from $105.0 million.

Net banking income increased 4% to $516.3 million from $495.9 million, driven by higher commission income and trading revenues. Net interest income rose 2% to $295.4 million as funding costs declined. The bank achieved a record cost-to-income ratio of 51.6%, down from previous levels. Operating expenses remained flat at $266.5 million while gross operating profit jumped 9% to $249.8 million.

Credit provisions fell 5% to $74.8 million, reflecting improved asset quality. The loan portfolio grew 2% to $9.9 billion while customer deposits rose 12% to $21.5 billion. CEO Jeremy Awori said the bank achieved a 30.5% return on tangible equity. Commission and other core revenues now represent 25.2% of total income as the bank diversifies revenue sources.

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Key Takeaways

Ecobank operates in 33 African countries, making it the continent's most widespread banking network. The group serves over 32 million customers across corporate, commercial and retail segments. The bank continues executing its Growth, Transformation and Returns strategy launched in 2024. Key initiatives include digital payment integration through the Pan-African Payment and Settlement System and the new Smart Business Pack for small enterprises. West African banking faces headwinds from geopolitical tensions and trade wars affecting regional economies. However, Ecobank's diversified geographic footprint and focus on trade finance position it well for growth. The group has invested heavily in technology and staff training to improve customer experience. Its pan-African payment platform and cross-border capabilities give it competitive advantages as intra-African trade expands under continental free trade agreements.

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