Ecobank Ghana Posts 3.7% Profit Growth Amid Sharp Rise in Costs and Loan Losses
Ecobank Ghana PLC reported a 3.7% year-on-year rise in net profit for the first quarter of 2025, with earnings reaching GHS 324.1 million compared to GHS 312.6 million in the same period last year, as the lender navigated heightened impairment charges and a spike in operating expenses.
Net interest income came in marginally higher at GHS 794.9 million (Q1 2024: GHS 792.6 million), buoyed by a 11.3% increase in interest revenue to GHS 1.07 billion, despite a 63.9% jump in interest expenses to GHS 272.3 million. Fee and commission income also advanced to GHS 168.3 million, up from GHS 133.1 million the previous year, while trading income dropped to GHS 161.2 million from GHS 199.4 million — a 19.1% decline, reflecting subdued market activity.
Total operating income for the Bank stood at GHS 1.17 billion, an improvement from GHS 1.07 billion in Q1 2024. However, a steep 63.5% increase in other operating expenses to GHS 355.4 million and persistently high impairment charges of GHS 109.2 million weighed on earnings.
Profit before tax edged up 3.7% to GHS 498.7 million (Q1 2024: GHS 480.9 million). After accounting for a tax charge of GHS 174.5 million, net income settled at GHS 324.1 million.
Earnings per share for the period stood at GHS 0.0402, up from GHS 0.0388 in Q1 2024.
Ecobank Ghana’s balance sheet expanded significantly, with total assets rising 29.7% to GHS 45.84 billion as at end-March, driven by a 77.1% increase in cash and cash equivalents to GHS 20.49 billion. Loans and advances to customers also rose by 13.3% year-on-year to GHS 10.32 billion.
Customer deposits saw strong growth, rising 20.2% to GHS 32.52 billion, while borrowings increased to GHS 325.1 million from GHS 204.7 million.
On capital and risk metrics, the Bank reported a Capital Adequacy Ratio of 16.8% (Q1 2024: 13.8%), a Tier 1 ratio of 14.0%, and a leverage ratio of 8.1%. Its liquidity position significantly strengthened with a liquid ratio of 88.2%, compared to 64.5% a year earlier. However, asset quality pressures persisted, with the non-performing loan ratio remaining elevated at 24.0%.
Ecobank Ghana’s retained earnings stood at GHS 3.45 billion, contributing to a total equity base of GHS 5.66 billion, up from GHS 3.95 billion in Q1 2024.
