By Dipo Olowookere
No doubt, the year 2020 was very challenging for many companies because of the COVID-19 pandemic, but in the midst of this, Ecobank Group showed resilience.
The lender operating in 33 countries across Africa released its financial performance for the year to the Nigerian Stock Exchange (NSE) and from the brief analysis done by Business Post, the company proved beyond a reasonable doubt that it is a bank for the people.
This is because despite the headwinds, its deposit from customers increased and this can be attributed to the various digital products designed by Ecobank to make financial transactions easier for its customers.
In the year under review, Ecobank increased its customer deposits by 23.73 per cent to N7.3 trillion from N5.9 trillion a year earlier.
The deposits from customers formed a significant percentage of the bank’s liabilities in the period under consideration, N9.6 trillion versus N7.9 trillion in 2019.
It was observed that the good use of technology for banking operations helped Ecobank to grow its interest income in the year by 4 per cent to N531.2 billion from N510.8 billion.
Last year, after the federal government declared a lockdown to curtail the spread of coronavirus in the country, many residents could not go out and technology was the saving grace for most organisations, including banks.
With an interest expense of N184.6 billion versus N239.6 billion in 2019, Ecobank closed the year with a 28 per cent rise in its net interest income of N346.6 billion compared with N271.2 billion in the prior year.
Sadly, the gross earnings recorded in the year reduced by 0.02 per cent to N841.1 billion from N842.5 billion, while the operating income improved by 9.0 per cent to N641.8 billion from N586.9 billion.
A further look into the results by Business Post showed that the fee and commission income reduced to N162.2 billion from N166.4 billion as a result of the decline in the portfolio and other management fees as well as card maintenance fees.
According to the results, a 4 per cent increase in the operating expenses to N402.7 billion from N388.3 billion as well as others weakened the profit before tax of the company significantly by 55 per cent to N66.6 billion from N146.5 billion.
The profit after tax closed in the year at 33.7 billion in contrast to N99.5 billion in 2019, signifying a decline by 66 per cent.
But the CEO of Ecobank Group, Mr Ade Ayeyemi, remains optimistic that the bank will fly higher.
He said the expansion of the balance sheet with the increase in the total assets of the bank to N10.4 trillion in the year from N8.6 trillion in the corresponding year of 2019 was “a reflection of the power of our pan-African diversified one-bank business model.”
“I am proud of Ecobankers’ hard work and continued service to our customers and the support we provide to the communities we serve,” he enthused.
The blockchain brings new financing options to the business market. For example, Bitcoin Cash casino has adapted to only using cryptocurrency. This way, it makes it easier for their customers to deposit and withdraw in a BCH casino. Entrepreneurs have taken note of this and are looking to invest more in crypto than in fiat markets.
Like Our Facebook Page
Latest News on Business Post
- Stock Investors Manage N2bn Gain as Results Dampen Spirits April 23, 2021
- Brent Climbs as Libyan Production Dips April 23, 2021
- Onne Customs Raises Revenue 69.4% to N38.9 billion in Q1 2021 April 22, 2021
- YouTube Launches Inaugural Africa Reading Challenge April 22, 2021
- Audiomack, MTN Develop Data Bundle for Music Streaming April 22, 2021
- FCTA to Reward High Impact Entrepreneurs April 22, 2021
- CSCS Assures Shareholders Sustainable Value, to Pay N1.17 Dividend April 22, 2021
- Fitbit Unveils Device to Track Users’ Fitness, Wellness April 22, 2021
- UK Expresses Willingness to Attract More Investments to Nigeria April 22, 2021
- How to Invest in Stocks in Nigeria: Guide for Beginners April 22, 2021
Economy5 years ago
Kwara Disburses N1.7b For Projects
Technology4 months ago
How To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
Economy3 years ago
FAAC: FG, States, LGs Share N655.18b in January
Feature/OPED1 year ago
Davos was Different this year
Feature/OPED1 month ago
COVID and the Growth of Technology in Nigeria
Economy1 month ago
MBA Forex Blames CBN for Inability to Return Investors’ Funds
General2 years ago
Ikeja Electric Explains How to Get Prepaid Metres via MAP
Banking3 years ago
Sort Codes of GTBank Branches in Nigeria