Compared to H1 2017, Ecobank’s profit rose by 37% last semester, however…
Friday, 24 August 2018 15:14 
(Togo First) - During H1 2018 which ended June 30, Ecobank Transnational Incorporated (ETI) recorded a net result of $168.5 million, up 37% compared to the same period in 2017.
According to the CEO of the Lomé-based Pan-African group, Ade Ayeyemi, pre-tax profit also rose by 41% last semester, standing at $213 million.
Similarly, the group’s treasury grew by about $341.03 million. This is good news, even if its pre-provision operating profit (PPOP) slumped 3% over the period reviewed; especially considering actual tensions between emerging markets, attributed mostly to the trade war going on between China and US. Actually, the treasury’s surge prevented Ecobank from issuing Eurobonds to fund its activities as it had planned.
Other improvements were recorded in services segments, distinct from corporate and investment banking. The group’s holding, eProcess, investment and assets management divisions, and its Paris subsidiary recorded a pre-tax profit of $112.3 million.
However, the group’s trading operations fared poorly, slumping 17% to $192.4 million (as compared to $232.6 million in H1 2017). This greatly affected operating profit, despite fee-commission income and interest income on customer loans rising 11% and 3% respectively.
Assessing these results, analysts from Ecofin Agency said they did not take into account some variables that will impact the group’s full year results. These include an exchange difference on translation of foreign operations of $74.4 million, and a potential loss of $31 million on investment securities. Taking these variables into account, Ecobank would end up with a consolidated profit of $63mln for the recent semester, down by 77% compared to $274.3 million during the same period in 2017
Fiacre E. Kakpo
