Ade Ayeyemi, Ecobank Group CEO, said: “The firm’s performance in the first quarter was strong, despite the continuing challenging operating environment. Revenues increased 4% to $409 million, and we earned $100 million in profit before tax, an increase of 11% year-on-year. Earnings per share grew by 8%, and return on tangible equity was 15.7%. These results reflect the benefits of our diversification and the sustained focus on our strategic priorities.”
“We were also pleased with the underlying performance of our businesses. Our Corporate and Investment Bank delivered a 4% increase in revenues, driven by efficient balance sheet utilisation and support for clients with structured financial solutions. Revenues grew 13% in Commercial Bank, buoyed by increased cash management fees as pandemic-induced restrictions were eased and client activity increased. However, the consumer continues to be disproportionately affected, which contributed to revenues in Consumer Bank declining by 3%. But we are encouraged by the gradual pick-up we are seeing in consumer spending activity. We continued to be unrelenting in our efficiency goals and improved further our cost-toincome ratio from 62.7% in the fourth quarter of 2020 to 59.3% in the current quarter, the lowest in a decade. We continued to build our impairment reserves on nonperforming loans in line with our goal of achieving a reserve coverage close to 100% in the near term. Consequently, the coverage ratio improved to 81.5%, from 74.5% in the fourth quarter of 2020” Ayeyemi added.
“Our balance sheet continues to be liquid, robust, and healthy, providing us with the capabilities to be supportive of our client’s financial needs. The focus on driving digitalisation in all our client engagements contributed to sustained growth in customer deposits,” Ayeyemi continued.
“Finally, I am proud of my fellow Ecobankers who continue to serve our customers and communities. Though the economic outlook remains uncertain with virus resurgences across parts of the world creating fragility in economic recovery, whatever the outcome, we are focused on remaining resilient and creating shareholder value for the long term. We will drive momentum to ensure a sustainable revenue expansion path with our clear focus on our people, platforms, products and ultimately performance.” Ayeyemi concluded.
