Ecobank profit rises to N197bn on interest income growth

Ecobank Transnational Incorporated (ETI) reported a profit after tax of N197.5 billion for the quarter ended March 31, 2026, representing a 5.6 percent year-on-year increase from N187.1 billion in the corresponding period of 2025, supported by growth in interest income and non-interest income.

According to the unaudited financial results, profit before tax rose by 1.1 percent to N270.3 billion from N267.3 billion, while earnings per share grew by 0.28 percent to N5.22. The performance reflects expansion across key income lines, although margin pressure persisted as the group retained 24 percent of gross earnings compared to 25 percent in the prior period.

Gross earnings growth was driven by higher interest income and moderate expansion in non-interest income. However, non-interest income’s contribution to gross earnings declined to 30 percent from 32 percent a year earlier, despite a 1.1 percent increase in absolute terms.

Interest income from loans and advances to customers remained the largest contributor, generating N376 billion, up 5 percent year-on-year and accounting for over 48 percent of total interest income. Income from investment in securities and treasury bills rose more strongly to N355 billion, up 22 percent, contributing 46 percent of total interest income. This shifted the income mix, with the contribution from loans declining from 51 percent in Q1 2025, while treasury instruments increased from 42.2 percent.

On the cost side, interest expenses declined to N237 billion from N243 billion in the prior period, supported by a more than 23 percent reduction in interest expense on borrowed funds to N54 billion. This outweighed an 8 percent increase in interest expense on customer deposits to N158 billion, which represented just 0.43 percent of total deposits of N36.81 trillion.

The combination of rising interest income and lower funding costs lifted net interest income by 20 percent to N540 billion.

Non-interest revenue streams, including cash management and related fees of N118 billion, contributed to a 12 percent increase in total operating income to N882 billion.

Operating expenses, comprising staff costs, depreciation, and other overheads, rose by 6 percent and accounted for more than 49 percent of operating revenue during the period.

The group recorded a significant writeback on impairment of N86.41 billion compared to N24.87 billion in Q1 2025, reducing net impairment to N179.24 billion. However, gross impairment charges increased by 150 percent year-on-year to N241 billion, equivalent to 1.51 percent of total loans and advances.

On the balance sheet, total assets declined by 1.67 percent to N48.83 trillion, reflecting reductions across key asset classes. Loans and advances fell by 5.9 percent to N20.5 trillion, while investments in securities and treasury bills declined by 14 percent to N14.88 trillion.

Customer deposits increased by about N370 billion during the quarter to N36.81 trillion, accounting for more than 75 percent of total assets.

On the equities market, shares of the bank declined by 8.79 percent week-on-week to N72 from N78. Despite the short-term decline, the stock has gained 69.6 percent month-on-month and 86.2 percent year-to-date, exceeding its full-year 2025 gain of 50 percent.