Cameroonian banker Alain Nkontchou-led Ecobank reports $196-million profit in H1 2024

Oluwatosin Racheal Alabi -

Key Points:

  • Ecobank reported a 196-percent profit increase to N311 billion ($196 million) in H1 2024, driven by strong revenue growth.
  • Revenue rose by 186 percent to N1.36 trillion ($85 billion), fueled by higher interest income and non-interest revenue.
  • Despite growth, Ecobank faced challenges with a 20-percent decline in trading income and a 13-percent drop in total equity.

Ecobank Transnational Incorporated (ETI) has reported a staggering profit after tax of N311 billion ($196 million) for the first half of 2024, showcasing an impressive 196-percent increase compared to the N105 billion ($66 million) recorded in the same period last year.

This exceptional growth showcases Ecobank’s financial health and positioning within the African banking sector.

The bank’s revenue for the first half of 2024 surged by 186 percent to N1.36 trillion ($85 billion), up from N475.65 billion ($299 million) in H1 2023. This increase was fueled by higher interest income and a rise in non-interest revenue, reflecting the bank’s diversified income streams and effective risk management.

Ecobank’s operating profit before impairment charges saw a remarkable 215-percent jump, reaching N631.5 billion ($397 million) compared to N200.77 billion ($126 million) in the previous year.

This surge was driven by robust growth in both interest and non-interest income, resulting in a 175-percent rise in total income to N1.23 trillion ($817 billion).

Rising costs and equity fluctuations amid growth

Despite the overall performance, Ecobank faced a 20-percent decline in trading income and foreign exchange gains, which fell to N230.31 billion ($145 million) from N209.45 billion ($132 million) in the previous year.

The bank also reported a net investment income loss of N941.51 million ($592,144), a drop from the N2.27-billion ($1.5 million) gain recorded in H1 2023.

The bank’s operating expenses increased by 165 percent to N728.73 billion ($458 million), driven by higher staff costs and depreciation. Impairment charges on financial assets also rose sharply, increasing by 273 percent to N188 billion ($118 million) due to heightened credit risk and cautious provisioning.

Ecobank’s total assets grew by 49 percent to N38.6 trillion ($24 billion) as of June 2024, up from N25.92 trillion ($16 billion) in December 2023. This growth was supported by a 49-percent increase in customer deposits, which reached N28.26 trillion ($17 billion).

However, the bank’s total equity decreased by 13 percent to N2.25 trillion ($1.4 billion), primarily due to exchange rate fluctuations impacting retained earnings and reserves. Earnings per share for H1 2024 increased by 175 percent to 878 kobo ($0.55), up from 319 kobo ($0.20) in H1 2023.

In the broader context, ETI’s profit after tax grew by 11 percent year-on-year to $407 million in 2023, up from $367 million in 2022, reflecting the bank’s sustained growth and financial resilience.

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.