Ade Ayeyemi, Managing Director of groupe Ecobank
Le Groupe Ecobank announces strong results for fiscal 2021 with pre-tax profit up 174% and a record return on tangible equity of 19%.
Le Groupe Ecobank announced strong results for the 2021 financial year with pre-tax profit up 174% and a record return on tangible equity of 19%, despite the persistent negative economic impact of the Covid-19 pandemic.
Le Groupe Ecobank posted net income of US$1.8 billion, up 5% year-on-year, driven by higher balances in interest-earning assets, products including payments, cards and credit charges.
Customer deposits were US$19.7 billion, up 8%, largely driven by an increase in the number of Ecobank Group customers transacting digitally and transaction volumes on its various channels and platforms. Customer loans also rose 4% to US$9.6 billion, driven by business loans.
Finally, pre-tax income of US$478 million, up 174%, was driven by positive operating leverage from higher revenue generation and lower operating expenses, as well as reduction in credit losses, resulting in a record return on tangible equity of 19% and an efficiency ratio of 58.9%, a level not reached in more than ten years.
These results are very positive for the growth of the Ecobank Group and reflect the resilience of the Group despite the various economic challenges. They also demonstrate the effectiveness of the bank’s diversified operating model, which is having a positive impact on our customers, as we benefit from our strategic approach to “Centralized Design, Local Distribution».
Ade Ayeyemi, CEO of Ecobank Group, in analyzing the performance of the Group said: “ 2021 has proven to be a transformational year for Ecobank. The Bank made significant progress with its strategic priorities and delivered strong commercial and financial returns. Thus, we have increased our revenues, remained efficient, improved credit quality, strengthened the balance sheet and, for the first time since 2016, our board of directors has recommended the payment of dividends to shareholders”. Ade Ayeyemi also observed: “Our performance is driven by our diversified operating model and our determination to grow our market share in our Trade Finance, Payments, Fixed Income, Foreign Exchange and Commodities (FICC) businesses.»
While thanking all the Ecobanquiers for their unwavering commitment, he added in conclusion: “The investments made to make Ecobank a credible catalyst of economic activity for households, businesses and governments in Africa have reinforced our optimism for 2022 and beyond. However, in an uncertain international climate, marked both by the post-Covid global economic recovery and by the already perceptible consequences of the war in Ukraine, we remain very focused on continuing to conduct our business responsibly, and on our commitment to environmental, social and sustainability principles governance.»
With continued execution of our strategic levers, our Group is firmly positioned for continued success as we remain committed to continuing to deliver our innovative financial and non-financial solutions to help build back better African economies.