ETI announces a 5% drop in loans and advances to customers

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Kayode Tokede

Ecobank Transnational Incorporated (ETI) Plc reported a 5% drop in loans and advances to N3.87 trillion in the first quarter ended March 31, 2022 from N4.06 trillion reported for the full year ended March 31 December 2021.

The group also reported a 2% drop in customer deposits to 8.19 trillion naira in the first quarter of 2022, compared to 8.36 trillion naira in the full year 2021 results.

Lower loans and advances and customer deposits impacted total assets which fell 4% to 11.27 trillion naira in the first quarter of 2022 from 11.69 trillion naira in 2021.

The group in its profit and loss figures announced a 26% increase in profits to N38.3 billion in its first quarter ended March 31, 2022, a result of figures published in the first quarter ended March 31, 2021 .

The pan-African bank increased its pre-tax profit by 29% to N100.32 billion in the first quarter of 2022 from N40.34 billion in the first quarter of 2021.

Ecobank Group CEO Ade Ayeyemi said in a statement: “We delivered strong results in the first quarter of 2022 with pre-tax profit up 25% to $125 million, diluted earnings per share up 29% to 0.27 cents and net revenue growth of seven percent to $436 million Return on tangible equity of 18.9% is a record compared to 15.7% a year ago a year.

Ayeyemi continued, “We achieved these results in a challenging operating environment characterized by the strengthening US dollar against our operating currencies, high inflation, high interest rates and tight labor markets across Africa. as the Russian-Ukrainian conflict continued to wreak havoc. Despite these challenges, we have continued to effectively support our customers, which has paid off as our businesses have increased revenues and profits.

“These were driven by trading, cash management, FICC and payments, while we also achieved modest loan growth with the support of higher interest rates. As a result, earnings before taxes increased by 13%, 26% and 59% respectively in our corporate and investment banking, consumer banking and commercial banking activities.

“Importantly, it is the bold strategic decisions and our investments in people, systems and processes over time that have resulted in the record returns for our shareholders today. We are constantly striving to generate returns towards our mid-term objective of around 20%. »

“We have continued to run the business with expense discipline, while growing profits and investing in improving the customer experience. So despite increased expenses – largely due to inflation – our cost/income ratio improved to 58%, compared to 59.3% a year ago.

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