Cameroonian banker Alain Nkontchou-led Ecobank reports $496 million in revenue in Q1 2024

Feyisayo Ajayi -

Key Points:

  • Pan-African banking leader Ecobank reports strong Q1 with revenue rising 5% year-on-year to N665.43 billion ($496 million).
  • Bank’s profit jumps 249% at constant currency, with chairman Alain Nkontchou holding a 2.18% stake.
  • Ecobank benefits from higher interest income but faces rising expenses in a high-rate environment.

Ecobank Transnational Incorporated (Ecobank), the leading pan-African banking group, led and partly owned by Cameroonian banker, Alain Nkontchou, delivered a robust first quarter of 2024, with revenue rising 5.02 percent year-on-year to N665.43 billion ($496 million). This strengthens ETI’s position as one of Africa’s top banking conglomerates.

Interest income up, expense rises in high-rate environment

Following a record-breaking 2023, where net revenue rose for the first time since 2015 to $2.1 billion (an 11 percent increase), ETI’s Q1 2024 revenue jumped 5.02 percent. At constant currency, the increase was a significant 205.5 percent.

The group’s report shows profit surging from N40.41 billion ($87.60 million) to N140.9 billion ($105.01 million), representing a substantial 249 percent increase at constant currency. Interest income calculated using the effective interest rate increased to N608.32 billion ($453.38 million) from N207.22 billion ($449.26 million).

However, the bank’s interest expense rose to N219.97 billion ($163.94 million) compared to N84.59 billion ($183.39 million) the prior year due to the high-interest-rate environment. Despite this, operating income remained healthy, standing at N665.4 billion ($495.95 million), from N217.8 billion ($472.25 million).

Leading regional banking group

Ecobank is the leading independent regional banking group in West and Central Africa, serving wholesale and retail customers in 36 African countries. The pan-African banking conglomerate is one of the largest in terms of countries served.

Cameroonian banker Alain Nkontchou, Chairman of Ecobank, maintains a 2.18 percent beneficial stake (equivalent to 400,916,488 ordinary shares) in the regional banking group.

Under Nkontchou’s leadership, total comprehensive income surged significantly, rising from N7.06 billion ($15.54 million) to N448.72 billion ($123.76 million). This follows a strong 2023 performance where total comprehensive income rose from $61.21 million to $226.99 million.

The Togo-based financial services conglomerate’s strong performance is reflected in a 33.39 percent expansion in total assets to N34.57 trillion ($26.53 billion). Retained earnings also surged 31.45 percent to N1.41 trillion ($1.02 billion).