Home Business Ecobank Group Reports 64% Drop In Profit

Ecobank Group Reports 64% Drop In Profit

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Ecobank Transnational Incorporated (ETI) Plc has reported 64per cent drop in profit, according to unaudited results for full year ended December 31, 2020 to Nigeria Stock Exchange (NSE) on Friday.

ETI reported profit of N35.88billon reported unaudited results of 2020 as against N99.46 billon reported audited results of 2019.

The pan-African bank recorded a revenue of over N630 billion for the year ended December 31, 2020. This represents a seven per cent growth when compared to N586.9 posted in the corresponding period of 2019.

In its unaudited report submitted to the NSE, the pan-African bank stated that value of its total assets now stands at N10.2 trillion after a 19 per cent rise.

The bank also recorded superlative performance in other key financial indices despite the harsh operating environment. Summary of the report showed that Deposits from customers went up 23 per cent to N7.3 trillion; Total equity up 17 per cent to N805.1 billion; while Loans and advances to customers grew by 9 per cent to N3.7 trillion.

However, despite the bank’s good showing in deposits from customers and revenue, profits was impacted by the provisioning for goodwill for the acquisition of Oceanic Bank in 2011. Consequently, the bank ended with profit after tax of N35.9 billion, while profit before tax and goodwill impairment closed at N126.4 billion.

The Ecobank Group had stated that it is optimistic that with clean book aftermath of the full provisioning for Oceanic Bank, it will improve on its profitability in 2021 and other years ahead.

 

 

 

 

 

 

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