Ecobank Ivory Coast Unit Reports 7% Net Profit Growth in Q1

AFRICAN STOCKS AND FINANCEApril 28, 2025 at 10:09 AM UTC

TLDR

Ecobank Cote d'Ivoire (BRVM: ECOC) posted a 6.9% increase in first-quarter net profit to 13.3 billion FCFA ($23 million), up from 12.4 billion FCFA ($21.5 million)
Net Banking Income grew 5.9% to 29.7 billion FCFA ($51.4 million), driven by a 9% improvement in net interest margin to 20.8 billion FCFA ($36 million)
Customer deposits grew 7.1% to 1.53 trillion FCFA ($2.65 billion), with non-interest-bearing deposits representing 69% of the mix

Ecobank Cote d'Ivoire (BRVM: ECOC) posted a 6.9% increase in first-quarter net profit to 13.3 billion FCFA ($23 million), up from 12.4 billion FCFA ($21.5 million) in the same period last year. Net Banking Income grew 5.9% to 29.7 billion FCFA ($51.4 million), driven by a 9% improvement in net interest margin to 20.8 billion FCFA ($36 million).

Risk costs fell 58.1% to 454 million FCFA ($786,000), reflecting improved loan portfolio quality. Non-performing loans decreased 16.9% to 35.2 billion FCFA ($61 million), reducing the impairment rate to 3.4%. Total assets reached 2.05 trillion FCFA ($3.55 billion), up 5.1% year-on-year. Customer deposits grew 7.1% to 1.53 trillion FCFA ($2.65 billion), with non-interest-bearing deposits representing 69% of the mix.

Net loans to customers contracted 3.3% to 985 billion FCFA ($1.7 billion), while the bank expanded its investment securities portfolio by 29.9% to 760 billion FCFA ($1.32 billion). Operating expenses increased 10.2% to 13.8 billion FCFA ($23.9 million), pushing the cost-to-income ratio to 46.5%. Return on equity stood at 25%, down slightly from 26.2% a year earlier.

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Key Takeaways

Ecobank's performance reflects the broader resilience in West Africa's banking sector amid regional economic challenges. The bank operates across multiple African countries within the West African Economic and Monetary Union (WAEMU), where the FCFA currency is pegged to the euro. The banking group's strategic shift toward higher investment securities and selective credit issuance follows regional trends of banks seeking safer assets amid uncertain economic conditions. The substantial portion of non-interest-bearing deposits (69%) provides Ecobank with a low-cost funding base, supporting profitability despite inflationary pressures affecting operational costs. The bank's reduced non-performing loan ratio contrasts with regional banking challenges, where credit quality concerns persist due to inflation and currency pressures in several African markets.

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