By Dipo Olowookere
The decision of Ecobank Group to invest heavily in technology to make financial transactions seamless for customers is already yielding positive results.
This is because the financial institution has witnessed a significant increase in the value of transactions carried out through its array of digital channels due to the confidence customers have in the products.
In the first nine months of 2022, according to the audited financial statements of the company for the period ended September 30, transactions valued at $59.1 billion were done across its digital channels, higher than the $40.4 per cent recorded in the same period last year by 44 per cent.
A closer look at the various digital channels of the company shows that the Ecobank Omni Plus recorded the largest transaction value within the period at $37.8 billion. Through its mobile app and Unstructured Supplementary Service Data (USSD), Ecobank recorded $4.2 billion within the period.
Its Omni Lite channel recorded transactions valued at $4.1 billion, while Ecobank Online and Xpress Points (Agency Network) recorded $755 million and $3.7 billion transactions, respectively. The company also posted transactions valued at $8.1 billion through other indirect digital channels.
A look at the results of the lender showed that in the period under review, revenue improved by 7 per cent to $1.35 billion from $1.26 billion in the same period of 2021.
Its operating profit expanded by 12 per cent to $593 million from $528 million filed in the corresponding period of 2021, while the profit before tax rose by 14 per cent to $401 million from $352 million in 2021, with profit paid to shareholders growing by 7 per cent to $196 million from $182 million.
Commenting on the results, the group chief executive of Ecobank, Mr Ade Ayeyemi, said, “We continued to deliver on our strategic priorities and are on track to meet full-year targets despite the complex operating environment.
“Group-wide return on tangible equity reached a record 21 per cent, and profit before tax increased by 14 per cent or 48 per cent at constant currency (i.e., excluding currency movements). These results reflect the resilience, strong brand and diversification of our pan-African franchise.”
“We saw decent client activity in consumer and wholesale payments, trade finance and foreign currency markets.
“Additionally, despite inflationary pressures, we maintained a tight lid on costs, thereby improving our cost-to-income ratio to 56.3 per cent from 58.3 per cent in the previous year.
“The dampened economic outlook necessitated maintaining a sound balance sheet with adequate levels of liquidity and capital. As a result, our total capital adequacy ratio at 14.4% is well above our internal and minimum regulatory limits,” he added.
