Ecobank Transnational Incorporated has reported a profit after tax of N735.9bn for the 2024 financial year, marking a 179 per cent increase from N263.5bn recorded in the previous year.

According to its financial statement released on the Nigeria Exchange Limited on Thursday, Ecobank’s gross earnings rose by 131 per cent to N4.22tn in 2024, up from N1.83tn recorded in the previous year. This increase was driven by higher interest and non-interest revenue, as well as improved loan recoveries. The group’s revenue also saw an impressive 133 per cent jump, reaching N3.11tn from N1.34tn in 2023.

Operating profit before impairment charges climbed by 138 per cent to N1.46tn from N615.9bn in the prior year. The group’s profit before tax increased by 160 per cent to N980.7bn, compared to N376.5bn in 2023, reflecting improved operational efficiency, cost management, and a solid growth strategy.

Ecobank reported an expansion in its financial position, with total assets rising by 67 per cent to N43.3tn in 2024, compared to N25.9tn in 2023. The increase was fuelled by higher customer deposits, loan growth, and a boost in investment securities.

Loans and advances to customers grew by 53 per cent to N15.3tn from N10tn recorded in the previous year, reflecting the bank’s continued lending activities to businesses and individuals across its operating regions. Customer deposits surged by 66 per cent to N31.6tn from N19tn, highlighting increased customer confidence in the bank’s services.

The group’s total equity advanced by 68 per cent to N2.78tn from N1.65tn, reflecting its improved financial strength and retained earnings from strong profitability.

Basic and diluted earnings per share rose sharply by 166 per cent to 2,019.684 kobo from 757.932 kobo in the previous year.

The bank’s interest income rose sharply by 128 per cent to N2.76tn in 2024 from N1.21tn recorded in the previous year. This was largely driven by an increase in income earned from loans and advances, as well as investment securities. Other interest income declined by 14 per cent to N749.9m from N876.2m.

Despite the strong revenue growth, the bank also faced rising costs associated with funding, as interest expenses jumped by 123 per cent to N1tn from N451.7bn in the previous year. However, the growth in net interest income remained robust, rising by 132 per cent to N1.75tn in 2024 from N756.8bn in 2023.

Non-interest revenue, which includes fees, commissions, and trading income, also recorded substantial growth. Fee and commission income surged by 152 per cent to N879.9bn from N349.4bn in the previous year, reflecting increased transaction volumes, improved digital banking adoption, and higher account maintenance fees. However, fee and commission expenses also grew by 136 per cent to N98bn from N41.5bn.

Trading income and foreign exchange gains increased by 130 per cent to N538.8bn in 2024 from N233.9bn in 2023. This was driven by higher foreign exchange transactions and gains from financial instruments. Investment activities recorded a loss of N2.5bn, reversing from a gain of N6.2bn in 2023, marking a 140 per cent decline due to fluctuations in market prices of investment securities.

With the substantial increase in revenue, Ecobank’s total operating income rose by 133 per cent to N3.11tn from N1.34tn in 2023.

On the cost side, operating expenses also rose sharply, driven by higher staff costs, depreciation, and other operational expenditures. Staff expenses increased by 124 per cent to N671.5bn from N299.7bn in the prior year, while depreciation and amortisation expenses grew by 102 per cent to N118.2bn from N58.4bn. Other operating expenses surged by 138 per cent to N861.7bn from N362.4bn, bringing total operating expenses to N1.65tn, representing a 129 per cent increase from N720.5bn recorded in 2023.

The bank did not record any net monetary loss from hyperinflationary economies in 2024, compared to a loss of N25.9bn in 2023. Meanwhile, the share of post-tax results from associates declined to N110.3m from N89.4m in 2023.

The PUNCH reported that Ecobank Nigeria and Design Week Lagos have expressed a desire to see Nigerian brands play competitively in the global furniture market valued at over $700bn.