Business
By Anayo Ezugwu
ECOBANK has recorded significant increase in customers’ adoption of digital and online channels in its first quarter 2020 financial report. The bank has also reported profit before tax of $90 million on net revenues of $393 million.
The bank in its report made available to Realnews said operating income (net revenue) of $393 million, up by one percent on a reported basis and 14 percent in constant currency. It also noted that operating expenses of $259 million, up by one percent on a reported basis and six percent in constant currency.
According to the report, the bank recorded pre-impairment profit of $133 million, up by two percent on a reported basis and 34 percent in constant currency, on positive operating leverage. It also stated that the bank recorded customer deposits of $16,103 million, up by six percent on a reported basis and 11 percent in constant currency.
While the bank reported loans and advances to customers (net) of $8,788 million, up two percent on a reported basis and seven percent in constant currency. Ade Ayeyemi, group chief executive officer, CEO, Ecobank, said: “Quarter 1, 2020 was the beginning of an unprecedented, uncharted and disturbing period for businesses, governments and individuals globally, owing to the rapid spread of the coronavirus pandemic. For us, as a bank, our focus is on making sure that we can meet the needs of our customers despite the pandemic, while also ensuring their wellbeing and safety as well as those of our employees.
“All our countries have successfully activated our business continuity plan in line with the needs of each local environment. Through our investment in technology over the years, working from home has been seamless and indeed a pretext to a possible new normal post COVID-19.
“As the leading pan-African bank, Ecobank embraced the call to duty with a sense of urgency. With our knowledge of Africa and its intricacies in the fight against the spread of COVID-19, we have contributed about $3 million in the form of cash, healthcare equipment and supplies, in addition to mounting sustained and robust awareness campaigns, while we are also using our digital banking platforms to provide money to some of the most vulnerable members in our communities.”
In recognition of the effects of the pandemic on a significant sector of African businesses, MSMEs, Ayeyemi noted that the bank is co-leading with the African Union-NEPAD. He said the bank was actively committed to an initiative to support MSMEs with technical knowledge, mentoring, knowledge sharing and financial support, thus playing a vital role in helping their businesses survive the pandemic.
“For the safety of our customers, we continue to adhere strictly to guidance from the WHO, governments, and health agencies in operating our physical locations, where they have to remain open. We have made it safer to visit our physical locations by providing temperature checks, crowd control, hand sanitisers and social distancing, among other measures.
“Our ATMs and call centres remain open 24/7, and the full ranges of our banking services are available via our digital platforms. Ecobank Mobile and Ecobank Online are available to our consumer customers, and Ecobank Omni Lite and Ecobank Omni meet the needs of SMEs and large businesses. To further help alleviate the adverse impact of the pandemic on our customers, we have waived some of the fees on our digital channels and we are closely monitoring events to anticipate situations that may require our support to customers as circumstances evolve.
“That said, our quarterly performance was resilient, again reflecting the strength of our diversified business model. We delivered $90 million in pre-tax profits, an increase of 27 percent if adjusted for currency translation effects, and a return on tangible shareholders’ equity of 17.1 percent. We are managing impairment losses prudently, and as a result, our cost-of-risk increased to 1.5 percent, versus 0.5 percent in the prior-year quarter,” Ayeyemi said.
– May 1, 2020 @ 14:55 GMT |
Tags: Ecobank records $90m profit before tax in Q1 2020
