Ecobank reports 174% increase in pre-tax profit in 2021

Banking

Thursday, 31 March 2022 16:23

Ecobank reports 174% increase in pre-tax profit in 2021

(Togo First) - Ecobank, the Lomé-based pan-African banking group, has announced a pre-tax profit of $478 million for 2021, an increase of $304 million, or 174%, compared to 2020. This is according to the financial results released by the group on Tuesday, March 29.

"The bank made significant progress in achieving its strategic priorities and delivered strong business and financial returns," said Ade Ayeyemi, Ecobank Group CEO, adding that 2021 was "a transformational year for Ecobank.”

As the world was recovering from Covid-19, the banking group present in 33 African countries, it appears, had a profitable year - the second marked by the pandemic. Its net income amounted to $1.8 billion, up 5% over the period. Ecobank’s efficiency ratio also rose to 58.9%, "the best in over a decade," Ayeyemi lauded.

However, there was a slight drop in the group's spending (partly due to a reduction in staff). They were down by $19 million, or 2% year-on-year, to $1 billion.

192 billion in profits in the UEMOA zone

In detail, Ecobank's Uemoa zone reported a pre-tax profit of $192 million for 2021 (CFAF 113 billion at current rates), up $41 million from 2020, 27% year-on-year.

Over the same period, net income in the region stood at $559 million, up $47 million, while spending was relatively unchanged year-on-year (at about $303 million).

The Ivorian subsidiary, a flagship of the Uemoa zone, for its part, crossed the FCFA 35 billion mark in pre-tax income in 2021, according to Agence Ecofin.

40 million in dividends for shareholders

In this context, Ecobank's board of directors last month recommended paying dividends to shareholders, which is also a first since 2016.

The group proposes to pay 0.16 cents USD ($0.0016) per ordinary share to shareholders, for a total dividend of about $40 million.

Ayi Renaud Dossavi

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