Ecobank posts second-biggest quarterly profit in Q1 2025, driven by core and non-interest income 

In addition to strong profitability, the group’s gross earnings rose by 16.59% YoY to N1.054 trillion, driven by robust growth in both interest and non-interest income.

Commenting on the results, Jeremy Awori, CEO of Ecobank Group, stated:
“Turning to our results, we achieved a return on tangible shareholders’ equity (ROTE) of 30.5%. Our profit after tax attributable to shareholders was $84 million, marking a 22% increase, or 39% in constant currency. 

Additionally, we delivered net revenue of $516 million, up 4% or 13% in constant currency. Our revenue streams continue to diversify, with core fee and commission income now contributing 25.2%.” 

At the heart of Ecobank’s strong Q1 showing was a solid rise in its core operating income; the bread and butter of banking.

Meanwhile, income from loans to customers and other banks fell 7%, reflecting a strategic shift in the loan book. Loans to banks surged by over N555 billion, while customer lending shrank slightly, suggesting a cautious stance on credit risk.

The bank also aligned with this strategy. Commenting further on the results, the CEO stated:

“Our margins remained stable, supported by a conscious reduction in the cost of customer deposits, driven by our successful strategy to generate low-cost customer deposits. As a result, customer deposit growth increased in the first quarter, with deposits rising by $1.1 billion. Improvements in our credit portfolio are evident across our cost of risk, non-performing loan (NPL) ratio, and coverage ratios.” 

Crucially, loan impairments losses from bad loans fell by 32%, cushioning the bottom line and helping lift operating profit by a third.

Beyond traditional banking, ETI flexed its muscle in non-interest income. Fees and commissions soared, led by strong performances in cash management and credit-related services.

Ecobank’s balance sheet remained robust, expanding by N1.23 trillion in Q1 2025 to reach N44.54 trillion, reflecting a 2.86% growth compared to Q1 2024.

Shareholders’ funds grew 7.91% YoY to N2.99 trillion but still accounted for just 6.74% of the balance sheet size, underscoring the bank’s heavy reliance on deposits and leverage to drive growth.

As of the close of trading on May 2, 2025, the share price stood at N28.00, reflecting a year-to-date (YtD) loss of 7.14%.