Ecobank posts second-biggest quarterly revenue in Q1 2025, pushed by core and non-interest earnings

Ecobank Transnational Integrated (ETI) has launched its unaudited Q1 2025 outcomes, reporting a pre-tax revenue of N267.305 billion ($174.9 million), reflecting a 32.68% year-on-year enhance.

Along with sturdy profitability, the group’s gross earnings rose by 16.59% YoY to N1.054 trillion, pushed by sturdy development in each curiosity and non-interest earnings.

Commenting on the outcomes, Jeremy Awori, CEO of Ecobank Group, acknowledged:
“Turning to our outcomes, we achieved a return on tangible shareholders’ fairness (ROTE) of 30.5%. Our revenue after tax attributable to shareholders was $84 million, marking a 22% enhance, or 39% in fixed foreign money.

Moreover, we delivered web income of $516 million, up 4% or 13% in fixed foreign money. Our income streams proceed to diversify, with core price and fee earnings now contributing 25.2%.”

What drove the outcomes:

On the coronary heart of Ecobank’s sturdy Q1 exhibiting was a strong rise in its core working earnings; the bread and butter of banking.

Each curiosity and non-interest earnings pulled their weight, however the bank’s capability to handle its lending and fee-generating actions made the true distinction.
Curiosity earnings remained the star performer, contributing almost 66% of complete earnings. Whereas its share dipped barely from final yr, the bank leaned extra on investments in authorities securities and treasury payments, a safer, extra secure guess, which grew 10% year-on-year.

In the meantime, earnings from loans to clients and different banks fell 7%, reflecting a strategic shift within the mortgage ebook. Loans to banks surged by over N555 billion, whereas customer lending shrank barely, suggesting a cautious stance on credit score danger.

On the flip aspect, curiosity bills grew at a slower tempo than earnings, which is a wholesome signal. At the same time as customer deposits surged by N1.5 trillion (with curiosity funds on these deposits rising by 21%), the general price of funds dropped marginally, bettering margins.

The bank additionally aligned with this technique. Commenting additional on the outcomes, the CEO acknowledged:

“Our margins remained secure, supported by a acutely aware discount in the price of customer deposits, pushed by our profitable technique to generate low-cost customer deposits. In consequence, customer deposit development elevated within the first quarter, with deposits rising by $1.1 billion. Enhancements in our credit score portfolio are evident throughout our price of danger, non-performing mortgage (NPL) ratio, and protection ratios.”

Crucially, mortgage impairments losses from unhealthy loans fell by 32%, cushioning the underside line and serving to elevate working revenue by a 3rd.

Past conventional banking, ETI flexed its muscle in non-interest earnings. Charges and commissions soared, led by sturdy performances in money administration and credit-related providers.

Money administration charges jumped to N108.9 billion, whereas credit-related commissions reached N61.7 billion forward of Q1 2024.
Add in a N125.7 billion overseas trade acquire, and also you get a diversified earnings engine firing on all cylinders.

The stability sheet

Ecobank’s stability sheet remained sturdy, increasing by N1.23 trillion in Q1 2025 to succeed in N44.54 trillion, reflecting a 2.86% development in comparison with Q1 2024.

Buyer deposits, which account for over 74% of the group’s complete belongings, rose 4.97% YoY to N33.208 trillion, reinforcing the bank’s sturdy funding base.
Regardless of the sturdy top-line and revenue development, Ecobank’s technique seems to be tilting towards liquidity and interbank positioning somewhat than aggressive retail lending.
Whereas loans and advances to clients declined barely by 0.23% to N15.310 trillion, lending to banks surged—signaling a choice for lower-risk, short-term credit score publicity. Money and money equivalents additionally noticed a slight decline of 1.15% to N7.803 trillion, suggesting some reallocation of liquidity.

Shareholders’ funds grew 7.91% YoY to N2.99 trillion however nonetheless accounted for simply 6.74% of the stability sheet dimension, underscoring the bank’s heavy reliance on deposits and leverage to drive development.

Key highlights (Q1 2025 v. Q1 2024):

Gross earnings: N1.054 trillion +16.59% YoY
Curiosity Earnings: N694.520 billion +14.17% YoY
Curiosity Expense: N243.191 billion +10.56% YoY
Web curiosity earnings; N451.329 billion +16.22% YoY
Non-interest earnings: N337.345 billion, +21.75% YoY
Working earnings: N788.674 billion+18.52% YoY
Revenue after tax: N187.113 billion +32.80% YoY
Primary EPS: N5.2 +38.67% YoY