Ecobank Transnational Incorporated reported a 17% year-over-year increase in pretax profit to $175 million for the first quarter of 2025, driven by disciplined cost management and a surge in low-cost customer deposits.
The pan-African banking group’s net revenue grew 4% to $516 million, while earnings per share rose 22% to 0.34 US cents, according to unaudited results released Tuesday.
CEO Jeremy Awori credited the performance to the bank’s Growth, Transformation, and Returns (GTR) strategy, which prioritized operational efficiency and customer deposit optimization. The cost-to-income ratio improved to a record 51.6%, down from 53.8% a year earlier, as expenses held flat despite inflationary pressures. Customer deposits climbed 12% to $21.5 billion, with low-cost current and savings accounts now comprising 81.4% of the total, up from 80.1% in 2024.
“Our geographic diversification and focus on stable revenue streams, such as fees and commissions, continue to cushion against macroeconomic volatility,” Awori said. Fee-based income accounted for 25.2% of total revenue, supported by a 25% jump in corporate payment volumes and expanded digital transaction services. The bank also increased liquidity buffers, reducing its loan-to-deposit ratio to 49.0% from 53.7% in 2024.
Regionally, Francophone West Africa contributed $68 million in post-tax profit, while Nigeria’s earnings rose 18% despite central bank restrictions impacting margins. The Central, Eastern, and Southern Africa (CESA) region saw profits jump 26%, fueled by higher fee income and cost controls. Asset quality improved slightly, with non-performing loans declining to 6.6% of total loans, though impairment charges on non-loan assets spiked due to risk reassessments.
Ecobank’s capital adequacy ratio stood at 15.6%, well above regulatory minimums, with tangible book value per share up 34% to 4.67 US cents. The bank highlighted initiatives like its Ellevate program for women entrepreneurs and the Ecobank Smart Business Pack for small enterprises as drivers of customer engagement.
The results arrive amid uneven economic recoveries across Africa, where currency fluctuations and climate-related disruptions strain financial systems. Ecobank’s emphasis on liquidity and regional diversification positions it to navigate these challenges, though rising geopolitical tensions and commodity market shifts remain key risks.
As one of Africa’s largest cross-border lenders, Ecobank’s performance reflects both the resilience and fragility of the continent’s banking sector. Its ability to sustain growth while managing emerging credit risks will test the durability of its strategic reforms in the coming quarters.
