Ecobank Transnational Incorporated, Africa’s leading pan-regional banking group, posted a 21% rise in net profit to $493.6 million for 2024, driven by cost controls and improved operational efficiency.

Revenue edged up 1% to $2.09 billion, though currency fluctuations in key markets like Ghana amplified growth in local terms, with revenue surging 30% to GHC 28.6 billion.

Financial Resilience

The lender’s total assets grew 3% to $28 billion, while customer deposits rose 2% to $20.4 billion. However, loans to customers declined 6% to $9.9 billion, reflecting cautious lending amid macroeconomic uncertainties. Equity increased 3% to $1.8 billion, supported by retained earnings.

Auditors Deloitte and Grant Thornton issued an unmodified opinion, affirming the accuracy of the financials. Management highlighted “effective internal controls” under COSO frameworks, though flagged risks from Ghana’s sovereign debt restructuring, which required $323.8 million in impairment charges.

Regional and Sector Performance

Nigeria remained Ecobank’s largest market, contributing 35% of total assets. Francophone West Africa saw operating profit jump 15%, while Central, Eastern, and Southern Africa regions reported stable returns. The Corporate & Investment Banking division generated 51% of net revenue, with Commercial Banking and Consumer segments accounting for 29% and 20%, respectively.

Challenges and Risk Management

Loan impairments dominated audit discussions, with gross loans totaling $10.5 billion. Auditors scrutinized models for estimating credit losses, particularly in Ghana, where the government’s Eurobond exchange program necessitated $130 million in provisions. CEO Jeremy Awori acknowledged “heightened credit risk” but emphasized the bank’s liquidity buffers, including $5.1 billion in cash reserves.

Outlook

Ecobank faces pressure from inflation and currency volatility across its 33 African markets. CFO Ayo Adepoju noted plans to optimize digital services and expand low-cost deposits. The bank’s capital adequacy ratio of 14.2% remains above regulatory minimums, providing a cushion against further economic shocks.

As African economies navigate debt sustainability and growth challenges, Ecobank’s diversified footprint and cost discipline position it to weather near-term turbulence while capturing long-term opportunities in underbanked regions.