Ecobank Group posts 68% drop in annual profit
Ecobank Group has said its profit after tax for the 2020 financial year dropped by 68 percent to $88.3 million (down 66 percent to N33.7 billion), compared to the previous year.
The pan-African financial institution said its profit before tax was down 57 percent to $174.3 million (down 55 percent to N66.6 billion).
Its total assets, however, rose by 10 percent to $25.9 billion (up 20 percent to N10.38 trillion), according to Ecobank Transnational Incorporated’s audited results released on Tuesday.
Ecobank said loans and advances to customers were stable at $9.2 billion (up nine percent to N3.69 trillion).
Deposits from customers were up 13 percent to $18.3 billion (up 24 percent to N7.32 trillion).
“The company’s capital and liquidity remain resilient despite unprecedented challenges from the COVID-19 pandemic,” Ecobank said, adding that it had continued to meet all its debt obligations.
It said, “Although some regulators temporarily suspended or limited dividend payments, reducing the dividend cash flows that the company obtains from its subsidiaries, the company has benefitted from its strong liquidity buffers in addition to a structure that ensures that liquidity is optimised across its network.
“Despite muted activity in capital markets during the year, the Group has successfully raised funding directly by affiliates and indirectly via the Holdco to support its objectives.”
The group said its liquidity had also been bolstered by steady customer deposit growth due to the accelerated pace of digital adoption during the pandemic.
