Ecobank Group has seen its Profits in 2024 rise by 16 per cent to 333 million dollars. Net revenue rose 18 per cent to 2.1 billion dollars at constant currency, driven by stable and recurring fee and commission income growth. Jeremy Awori, CEO of Ecobank Group says 2024 was a pivotal year as the bank implemented its Growth, Transformation, and Returns strategy. He joins CNBC Africa to unpack the results and growth plans for 2025.
Now, Ecobank Group has seen its Profits in the year 2024 rise by 16 per cent to 333 million dollars. Net revenue rose 18 per cent to 2.1 billion dollars at constant currency, driven by stable and recurring fee and commission income growth. Jeremy Awori, the Chief Executive Officer of Ecobank Group says 2024 was a pivotal year as the bank implemented its Growth, Transformation, and Returns strategy. He joins me now virtually to unpack the results and the growth plans for this year. Thank you so much for joining us on the show today, Mr Awori. Thank you, David. Now, one of the numbers we have here, but walk us through the highlights and drivers of the four-year 2024 performance and how the bank group was able to navigate the macroeconomic environment across your key markets last year. Yeah, 2024 was the first full year of the Growth, Transformation, and Returns strategy for the Ecobank Group. And we were really pleased with the earnings and the returns that we generated. As you indicated, we generated 658 million dollars of PBT and return on tangible equity of almost 33 per cent. So, this marks a shift from prior years. And I think what was very pleasing was that three of the four regions really demonstrated strong growth in the teens, some even growing as fast like our Anglophone West Africa region growing as much as 41 per cent at the PBT level and all of them growing ROTE by 30 per cent. And we're starting also to see the investments in our businesses like the consumer and commercial business. It was a foundation year, a lot of investments in products and propositions, launching new products in some of our markets and starting to grow those businesses. Our commercial business is also growing. But the call-out year was for the corporate and investment banking business, which grew the fastest. We also invested in our payments and remittance business, forming a number of strategic partners with Neum, Transfer2, X-Transfer. So, partnerships was a core part. And we believe that these partnerships with key global players will really deliver future growth for us as we focus on delivering customer value across the continent. Definitely. And we're also seeing as we take a look at some of the numbers here, we are still seeing the balance sheet robust at this moment. But focusing now a little more into Nigeria, which is one of your key markets, let's also have your take on some of the reforms you've had from the Central Bank of Nigeria with regards to FX, the recapitalisation momentum and also expectations around the monetary policy direction. And while we juxtapose this to how the Nigerian and African market is also responding as well to global developments, what's your assessment here and how comfortable with the terrain at this moment? No, definitely, there's been quite a number of regulatory changes as the new government and the Central Bank came into office. And I think these will position, I think, the economy and the country for greater stability. We've already seen that in terms of the FX rate over the last few months has been more stable than we've seen it in the past, even though in 2024, we obviously saw the correction to the 1,500 to 1,600 Naira level. We also saw the new capital requirements for banks. And we were pleased as ECO Bank to already meet the 2026 200 billion Naira with an injection of capital in September last year. So, we've already met that requirement. The other changes were around the cash reserve ratio, which increased to 50 percent. That put a little bit of pressure on liquidity in the market. And for us as a bank, we hold a lot of foreign currency deposits. It put pressure on us in terms of having to go into the market to fund the CRR, which affected our earnings somewhat. But fundamentally, I think where the government and the regulator is looking to drive that stability, build confidence within the country, which will attract more investment, that I think would be positive for the country as a whole. And I would also like your take on one of your quotes here from your paper at this moment now, where you're also talking about the transformation of the Nigerian business also underway as you continue to collaborate with key stakeholders. And also looking at how the bank group is also positioning on the back of cross-border payments and expectations of bigger trade volumes. I would like more details within this aspect. So, Ecobank, number one, is in 35 countries across Africa. So, we have the largest country network of any bank on the continent. We also have a single payment and technology platform, which allows us to do real-time payments across the continent. You can use your mobile phone, whether your online banking tool, and transfer money real-time in local currency. That positions us very well for trade and to support customers and clients who want to do trade finance and cross-border payments across the continent. So, for us, what we want to do is we're investing in that. We're embedding even further partnerships to be able to support Africans and African businesses to trade further. And we believe this is important, especially in this geopolitical environment. And Nigeria, obviously, with the reforms, we have started to see more trade. We've started to see more outward remittances in addition to inward remittances. And we believe, as a bank, we're the best partner to assist you with that as we move forward. Yes, and talking about moving forward, I'm also interested quite keenly in the near-term plans, in the works, what's really on the table at this moment, and if there are timelines within this year. For us, the important focus area within the Nigerian business, in particular, is growing our consumer and commercial businesses. Even though the results might not necessarily show it, when you'd break down into those two businesses, we've seen our revenues grow almost 100% in both businesses. We've seen our profits grow in constant currency in the Naira by over 150% PBT. So, we're starting to see the shoots of the strategy taking root. We're growing the number of customers. We're seeing increased transactions from those customers, greater satisfaction, and we're still to really launch a series of products which will come this year after conversations with customers about what they want. And this is in line with our broader strategy to grow out our payments business, as I've just articulated, grow out the consumer and commercial business, while still investing in our core business, which is corporate and investment banking, where we continue to support our clients and governments with particularly unique transactions to serve their needs. So, we think this total package will be able to help us grow, but most importantly, make a difference in the countries and economies in which we operate by connecting them together in the future. Thank you so much for your time, Adesha, today, Mr. Awuori. We'll have to leave the conversation here for now. That was Jeremy Awuori, the Chief Executive Officer of EcoBank Group.
Theme: Economic Growth and Strategic Transformation in Ecobank Group
Ecobank Group, a leading financial institution in Africa, has reported a 16% rise in profit in the fiscal year 2024, reaching a substantial $333 million. The net revenue also saw a significant increase of 18% to $2.1 billion, driven by stable and recurring fee and commission income growth. Jeremy Awori, the Chief Executive Officer of Ecobank Group, expressed his satisfaction with the bank's performance in 2024, emphasizing that it was a pivotal year as the institution implemented its Growth, Transformation, and Returns strategy. Awori highlighted that 2024 marked the first full year of the new strategic approach for Ecobank Group. The bank generated $658 million of PBT and achieved a return on tangible equity of almost 33%. This shift in performance was particularly noticeable in the regional growth, with three out of the four regions demonstrating strong double-digit growth in profits before tax (PBT). One standout region was Anglophone West Africa, which experienced a remarkable 41% growth at the PBT level. He also noted the significant investments made in various business sectors such as consumer, commercial, corporate, and investment banking. The corporate and investment banking division experienced the fastest growth, while the bank also forged strategic partnerships with global players like Neum, Transfer2, and X-Transfer in the payments and remittance business, aiming to drive future growth and deliver enhanced customer value across the continent. In the context of the Nigerian market, Awori addressed the regulatory changes initiated by the Central Bank of Nigeria, including FX reforms and recapitalization requirements for banks. Despite these changes posing some challenges, he expressed optimism about the stability they could bring to the economy and the country, fostering confidence and attracting more investments. Ecobank's wide presence across 35 African countries positions it as a leading player in the market. The bank's single payment and technology platform enable real-time payments across the continent, facilitating trade finance and cross-border transactions for its customers. Awori emphasized the importance of supporting African businesses in expanding their trade activities, especially amid the evolving geopolitical landscape. Looking ahead, Ecobank Group aims to focus on growing its consumer and commercial businesses within Nigeria. Despite not fully reflecting in the current results, the bank has seen significant revenue and profit growth in these sectors. Awori outlined plans to introduce new products based on customer feedback and continue strengthening the core corporate and investment banking business to cater to unique client needs. In conclusion, Ecobank Group's robust performance in 2024 and strategic growth plans for 2025 underpin its commitment to driving financial inclusion, fostering economic development, and promoting cross-border trade in Africa.
"2024 was the first full year of the Growth, Transformation, and Returns strategy for the Ecobank Group. And we were really pleased with the earnings and the returns that we generated."
['Ecobank Group', 'Jeremy Awori', 'financial results', 'growth strategy', 'African market', 'Nigerian economy', 'cross-border payments', 'trade finance']