ETI grows 2014 full year net profit by 178.7%

Ecobank has the largest banking network in sub-Saharan Africa
Ecobank has the largest banking network in sub-Saharan Africa

The management of Ecobank Transnational Incorporated (ETI) on Monday presented its 2014 financial report showing robust growth in profit before and after tax on the back of a marginal increase in earnings for the period.

Another highlight of the bank’s scorecard was that while there was no proposal for dividend payment, despite the earnings per share of N3.27 up by 152.1 per cent from N1.30 in 2013, the board recommended a bonus of one new share for every 15 held by shareholders. Closure date is June 25 and 29, 2015.

According to the results presented through the Nigerian Stock Exchange (NSE), gross earnings income rose by 19.0 per cent from N411.184 billion in 2013 to N489.253 billion.

Of this, operating income rose to N379.322 billion from N319.563 billion, while net interest income stood at N184.581 billion from N167.602 billion, even as operating expenses grew by 10.7 per cent from N224.1 billion to N248.092 billion.

This left profit before tax at N86.442 billion, which was a significant 144.4 per cent improvement over the N35.375 billion reported in the corresponding period of 2013.

With tax element jumping by an equally robust 93.6 per cent to N20.30 billion, net profit improved by 178.7 per cent to N65.681 billion in the period under review from N23.571 billion.

There was also an improvement on the balance sheet, with loans and advances at N2.635 trillion, 29.6 per cent better than the N2.034 trillion in 2013.

Total assets grew from N3.599 trillion to N4.501 trillion, representing an increase of about 25.1 per cent.

Deposit base of its various banking subsidiaries across Africa improved by a cumulative 24 per cent to N3.407 trillion, from N2.747 trillion.

Shareholders funds for the period increased to N493.023 billion, up by 44.6 per cent to N341.01 billion, which translates to Net Assets Per Share of N24.53, which is 30.8 per cent better than previous year’s N18.76 each.

The result, according to data provided by Lagos-based investment banking group – Dunn Loren Merrifield Limited, translated to net profit margin of 13.42 per cent, up from 5.73 per cent in the corresponding period of 2013.

It also showed cost-to-income ratio of 65.4 per cent, which improved from 70.13 per cent; while loans/deposit ratio grew to 77.35 per cent from 74.05 per cent.

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