Ecobank Ghana PLC and its subsidiaries posted a 4% year-over-year increase in net profit for the first quarter ending March 31, 2025, according to unaudited financial statements.
The Group’s profit after tax rose to GHS 329.7 million, up from GHS 316.6 million in the same period last year, while the standalone bank’s profit grew 3.7% to GHS 324.1 million.
The financial institution reported a 13% surge in interest revenue to GHS 1.12 billion, driven by expanded lending activities. However, interest expenses nearly doubled to GHS 309.1 million, narrowing net interest income growth to a marginal 0.2%. Fee and commission income improved by 29%, offsetting a 16% decline in net trading income. Total operating income climbed 9% to GHS 1.19 billion, supported by reduced impairment charges on loans, which fell 38% to GHS 109.7 million.
Despite higher revenue, operating expenses surged 63% to GHS 360.8 million, contributing to a tighter pre-tax profit margin. Personnel costs remained stable, but depreciation, lease liabilities, and unspecified “other operating expenses” drove the increase.
Ecobank’s total assets expanded by 27% to GHS 46.3 billion, fueled by a 72% rise in cash reserves to GHS 20.5 billion and a 13% increase in customer loans to GHS 10.4 billion. Customer deposits grew 18% to GHS 33.3 billion, though borrowings also rose 61% to GHS 329 million. Shareholder equity strengthened to GHS 5.73 billion, bolstered by retained earnings, which jumped 77% to GHS 3.52 billion.
Cash flow from operations turned negative at GHS 99.7 million, compared to a GHS 1.93 billion inflow in 2024, attributed to higher loan disbursements and shifts in asset management. Investing activities saw GHS 477.2 million outflows, primarily for securities and infrastructure, while financing activities included GHS 68.1 million in debt repayments.
Regulatory metrics showed improved stability, with the Common Equity Tier I ratio rising to 88.22% from 64.52%, well above minimum requirements. However, the statutory liquidity default ratio increased to 8.08%, signaling potential regulatory scrutiny. Contingent liabilities, including loan commitments and guarantees, totaled GHS 4.58 billion, posing risks if economic conditions deteriorate.
Ecobank emphasized adherence to risk management frameworks addressing credit, market, liquidity, and operational risks. The results reflect cautious growth in Ghana’s competitive banking sector, balancing asset expansion with rising cost pressures. Analysts will monitor whether expense controls and liquidity management align with long-term stability goals amid evolving economic headwinds.
