ETI post-tax profit hits N735.9 billion in 2024, up 179%

Pre-tax profit more than doubled to N980.7 billion from N376.5 billion in 2023.

In reported currency, the Nigeria segment remained the dominant earnings driver, with post-tax profit soaring 179.3% YoY to N455.7 billion, accounting for 61.9% of the Group’s total profit.

However, in constant currency, Nigeria’s contribution to the Group’s $494 million post-tax profit was 0.63%, reflecting the impact of currency translation adjustments.

Beyond its strong profitability, ETI’s gross earnings surged 130.6% YoY to N4.22 trillion, driven by both interest and non-interest income.

Key highlights (2024 v. 2023):   

A deep dive into ETI’s financials reveals that core operating income was the key driver of its remarkable earnings growth, supported by both interest and non-interest revenue streams.

Interest income remained the largest revenue source, contributing over 65% of gross earnings. This was primarily driven by:

However, this aggressive expansion came at a cost impairment charges on loans surged, leading to a higher NPL ratio of 6.7% and a cost of risk of 1.8%, the second highest in five years.

Beyond interest income, non-interest revenue played a crucial role in driving profit growth. Fees and commissions saw an impressive jump, fueled by increased cash management services and credit-related fees.

Meanwhile, trading and foreign exchange gains more than doubled. This robust non-interest income stream helped cushion the impact of rising costs and bolstered overall earnings.

Overall, ETI’s strong profit growth was fueled by a combination of higher interest income, increased fee-based earnings, and better cost management. However, rising impairment charges and higher borrowing costs are key areas to watch moving forward.