Ecobank’s digital transactions rise 44% to $59.1bn in 9 months

By Rosemary Iwuala

Ecobank Group has recorded transactions valued at $59.1 billion across its digital channels in the first nine months of 2022, a 44 per cent increase year-on-year increase against the $40.4 billion recorded in the corresponding period of 2021.

The company disclosed this in its audited financial report for the 9-month ended September 2022.

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. The company also generated $4.2 billion within the period through its mobile app and Unstructured Supplementary Service Data (USSD).

The report indicated that 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.

According to the company’s result, Ecobank in the 9-month financial result reported a 7 per cent increase in revenue from $1.26 billion in the same period of 2021 to $1.35 billion in the period under review.

Also, the bank’s operating profit expanded by 12 per cent  to $593 million, up from $528 million filed in the corresponding period of 2021.  Profit before tax jumped to $401 million, a 14 per cent increase from $352 million achieved in 2021, while Profit paid to shareholders grew by 7 per cent from $182 million to $196 million.

Commenting further on the result, Ade Ayeyemi, Ecobank Group’s chief executive officer,disclosed that 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, excluding currency movements.

“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% from 58.3% 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 said.

Ayeyemi noted that the results reflect the resilience, strong brand and diversification of our pan-African franchise. He added that the company is committed  to delivering on its strategic priorities and on track to meet full-year targets despite the complex operating environment.