by Alex C
Ecobank Transnational Inc, the parent company of the Pan-African banking Group present in 35 African countries, announced pre-tax profit of $222 million on revenue of $2.0 billion for the twelve months ended 31 December 2013. Breakdowns of the audited financial results reveal net revenue of $2.0 billion, up 16 percent from the prior year.
Profit after tax from continuing operations for the year ended 31 December 2013 was put at $156 million, down 45% from the prior year.The Bank showed strong balance sheet growth during the fourth quarter of 2013, including an increase of 9% in net customer loans and 5% in customer deposits, led by Nigeria and Francophone West Africa respectively.
While customer deposits rose to $16.5 billion (13% higher from the prior year), Tier 1 capital under Basel 1 increased by $55 million to $2.1 billion, for a Tier 1 capital ratio of 13.0%.
Commenting on these results, Albert Essien, Group CEO said that revenues for the full year surpassed $2.0 billion, showing strong organic growth of 16% despite a tough operating environment.
Essien noted that the focus on efficiency across the Bank’s diversified platform paid off, with the cost-to-income ratio improving in each of its six geographical clusters.
“Balance sheet growth was also strong, with a double digit increase in customer deposits and over 20% growth in net customer loans. Our profitability for 2013 has been impacted by increased impairment provisions. A significant proportion of these relate to certain legacy assets in Nigeria which the company took a conservative decision to fully address. As a result, we are reporting profit after tax down by nearly half” Essien explained.