- November 02, 2017
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Ecobank reports 2017 Q3 financial results
- Revenue increased 4% in constant currency, highlighting the successful rebalancing of the Group’s revenue streams
- Cost-to-income ratio improved to 61.7% (9M16: 65.5%).
- Continued group-wide optimisation - staff right-sizing, closure on non-strategic branches, improved procurement processes
- One-off restructuring costs of $9.3 million in Central, Eastern and Southern Africa
- Increased digitization to enhance the customer experience; expanding customer base to 13 million
- >1.2 million downloads of our pan-African mobile App in 12 months
- 53K merchants on-boarded on Masterpass QR and mVisa QR, merchants
- 2.7 million Xpress Accounts, which allows unbanked to open an account using a mobile phone
- Mobile App accepts non-Ecobank cards; generated e-token to allow for cash withdrawals at ATMs; ability to make cash deposits and withdrawals at agent locations using a generated e-token, an agent IDD, or merchant QR code
- Strong deposit generation in all regions except for Nigeria where the operating landscape is challenging
- Addressing aggressively residual credit quality challenges
- Focus on recoveries, collateral realisation while tightening credit origination standards
- Building partnerships to expand and accelerate distribution leadership
- The announced $400 million convertible debt issuance, completed
- Successful IPO of Ecobank Côte d’Ivoire raising XOF45 billion ($80 million) at 2.8x book value on offers of XOF108 billion
- Credit rating of ‘B’, Stable Outlook, affirmed by Fitch (10 August 2017)
- Profits negatively impacted by provision building and macroeconomic headwinds
- Revenue increased 4% in constant currency, highlighting the successful rebalancing of the Group’s revenue steams
- Pre-impairment income(2) up 17% in constant currency, benefitting from positive operating leverage
- Cost-to-income ratio improved to 61.7%, driven by continued cost efficiency gains
- Customer loans down 7% in constant currency driven by a subdued environment and reduction in lending
- Customer deposits up flat in constant dollars; however, up 7%, if Nigeria is excluded
- Francophone West Africa and Anglophone West Africa delivered strong ROEs of 23.6% and 24.4%, respectively, and accounted for ~44% of revenues
- Basel I Tier 1 capital ratio of 23.7% and CAR of 25.6%
- $400m convertible debt issuance completed
Re-disseminated by The Asian Banker