…In Nigeria, Ecobank reported a more subdued performance, with profit before tax flat at $4 million and down 9 per cent in constant currency as higher impairment charges offset stronger revenue growth
TUE APRIL 28 2026-theGBJournal| Ecobank Transnational Incorporated (ETI) opened 2026 on a strong note, posting a 21% year-on-year rise in profit before tax to $195 million, as stronger revenues, improved efficiency and accelerating digital payments underscored the resilience of its pan-African banking model.
The group’s first-quarter performance was marked by a 19.5% return on tangible equity, a sharper cost profile and stronger capital buffers, reinforcing management’s confidence in Ecobank’s Growth, Transformation and Returns strategy despite persistent geopolitical and market volatility.
Profit attributable to shareholders rose 11 per cent to $93 million, translating to earnings per share of $0.0038.
Tangible book value per share climbed 65 per cent to $0.077, reflecting stronger shareholder value creation and balance sheet resilience.
Group net revenue rose 23 per cent to $636 million, supported by broad-based growth across business lines and a rising contribution from stable non-interest income, which accounted for 38.7 per cent of total revenues.
Payment revenue increased 18 per cent to $78 million, driven by stronger wholesale payment flows, higher card-related fees and a sharp rise in merchant solutions income.
Ecobank’s digital banking momentum remained strong, with the value of digital transactions surging 54 per cent to $25.7 billion, even as transaction volumes edged up 2 per cent to 57 million.
The performance highlights the bank’s continued push to deepen transaction-led banking and strengthen recurring fee income across its African franchise.
Operational efficiency also improved, with the cost-to-income ratio declining to 49.0 per cent from 51.6 per cent in the corresponding period of 2025, reflecting tighter cost discipline and the gains from ongoing transformation initiatives.
Return on average assets stood at 1.6 per cent, while return on average tangible equity came in at 19.5 per cent.
Ecobank ended the quarter with a stronger capital position, as estimated Group Common Equity Tier 1 and Total Capital Adequacy ratios improved to 13.4 per cent and 16.8 per cent respectively as of March 31, 2026.
These levels remain comfortably above regulatory thresholds, with capital buffers of 486 basis points above the minimum for CET1 and 429 basis points above the total capital requirement.
Customer deposits grew by $5 billion year-on-year to $26.5 billion, driven by a strong increase in low-cost current and savings account balances, which now account for 88.3 per cent of total deposits.
Gross loans and advances rose by $2 billion to $12.5 billion, while liquidity remained robust, with a loan-to-deposit ratio of 47.2 per cent, underscoring ample room for credit expansion.
Asset quality, however, remained a pressure point. Non-performing loans rose to $1.2 billion, representing 9.5 per cent of gross loans, largely due to higher impaired exposures in Nigeria linked to Ecobank’s prudent exit from the Central Bank of Nigeria’s forbearance regime.
Expected credit loss reserves increased 64 per cent to $1.0 billion, while gross impairment charges on loans surged to $174 million as the group strengthened buffers against emerging credit risks.
Still, Ecobank’s aggressive loan recovery efforts helped cushion the impact, with recoveries rising sharply to $62 million from $16 million in the prior-year period.
In Nigeria, Ecobank reported a more subdued performance, with profit before tax flat at $4 million and down 9 per cent in constant currency as higher impairment charges offset stronger revenue growth.
Net revenue rose 46 per cent to $50 million, driven by improved treasury management solutions and stronger cash management income, while tighter cost control helped cut the cost-to-income ratio sharply to 56.0 per cent from 74.6 per cent.
Commenting on the results, Group Chief Executive Officer, Jeremy Awori, said Ecobank delivered a strong start to the year, supported by robust deposit growth, improved net interest margins, stronger business momentum and disciplined execution, despite a challenging operating backdrop shaped by Middle East tensions and volatility across energy and global financial markets.
”The results reflect the resilience of Ecobank’s diversified pan-African platform, the strength of its customer-led strategy and the disciplined execution of its transformation agenda.”
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