From January to September this year, Ecobank has made a profit-after-tax of $229M from the total of $1.4 trillion of revenues. Even though the revenues of the Pan-African bank of the same period during 2016 were up to 4%, the profits were 19% down; a tremendous success of the Lome-based institution.
Such success is a result of various operations of the bank, mainly: the reduction of costs, the improvement of cost-to-income ratio to 61.7% from 65.5%, the management strategy to recover past due loans while reducing lending activity, and the increase of customer deposits by 1% except in Nigeria.
Ade Ayeyemi, the Group CEO said, “We expect further efficiency gains to come from on-going right-sizing of our Central, Eastern, and Southern Africa region and subsequently the rest of our West Africa regions.”
However, the non-performing loans of nine months to September 2017 were $934M in comparison to $930M September 2016 and the asset quality indicators are and will remain high during the next few quarters. The predominant regions with highest non-performing loans are Central, Eastern, and Southern Africa regions.
As part of the Bank’s strategy to reach long-term growth, the creation of a digital bank is to be expanded as the mobile app downloads, merchant acquisitions and merchant processing volumes increase.