Ecobank Transnational Incorporated, a Pan-African bank with operations in 33 African nations, reported a pre-tax profit of N352.92 billion in its unaudited Q2 2025 financial results for the quarter that concluded on June 30, 2025.
The bank’s consistent momentum and enhanced performance across its diverse markets are reflected in this 32 percent growth from the first quarter of 2025 and a 45.86 percent year-over-year increase.
Due to this performance, the bank’s profit for the first half of 2024 reached N620.23 billion, which is already more than 60 percent of its total profit for the full year and represents a 39.86 percent year-over-year growth.
As anticipated, interest income, which accounted for more than 63 percent of gross earnings, continued to propel the bank’s topline performance.
Additionally, it expanded more quickly than interest expense, which enhanced net interest income coverage.
Furthermore, the bank’s non-interest income increased by more than 34 percent on an annual basis.
All of these factors combined to produce a healthy operating income of N949.2 billion, which was up 37 percent year over year and ultimately significantly improved the bottom line.
Cursory examination of Ecobank’s financial performance
A cursory examination of the bank’s financial performance reveals broad-based growth across key lines, both quarterly and annually, improving its H1 2025 results significantly.
Interest income increased by 14 percent in Q2 alone compared to Q1, reaching N1.49 trillion for the half-year, already more than 53 percent of the total amount for 2024.
Although interest income from investments in securities and treasury bills increased, income from loans and advances was the main driver.
The bank added N3.07 trillion to its securities and treasury bill holdings. Additionally, during H1 2025, it increased loans and advances to banks and customers by N2.4 trillion.
In addition to interest income, fees and commissions, foreign exchange, and trading income all helped to support non-interest revenue, which was another significant contributor.
Cash management services and credit-related charges were the main drivers of the spike in fees and commissions.
In H1, foreign exchange and trading gains accounted for about N298.3 billion of gross earnings.
The impact of a higher interest rate environment and a N5 trillion increase in customer deposits during the first half of the year was reflected in interest expenses, even though they grew more slowly than interest income (+11.73% YoY).
Impairment charges at the bank increased significantly, mostly as a result of provisioning on customer loans.
A more cautious credit stance or a decline in asset quality in certain markets is indicated by the N273 billion total loan impairment in H1.
Ecobank’s H1 2025 balance sheet
Ecobank’s H1 2025 balance sheet shows a solid and broad financial position, underscoring its relevance and dominance in the pan-African banking market.
Its 33-country network’s operational scale and financial depth are indicated by the growth in assets, deposits, and equity.
Nevertheless, investors may now focus on whether regular dividend payments from this growing capital base can result in higher shareholder returns.
In terms of market performance, Ecobank’s share price was N34 at the end of trading on July 28, 2025, which represented a 21 percent gain so far this year.
Key highlights (Q2 2025 vs Q2 2024):
- Interest Income: N794.027 billion +28.07% YoY
- Interest Expense; N273.631 billion +11.73% YoY
- Net interest income; N520.396 billion +38.73% YoY
- Non-interest revenue: N428.796 billion, +34% YoY
- Operating income: N949.192 billion, +37% YoY
- Operating expense: N446.493 billion, +20% YoY
- Operating income before impairment: N502.598 billion, +55%
- Impairment charge for losses: N149.672 billion +83%YoY
- Profit after tax: N246.766 billion +45% YoY.
- Loans and advances to customers N16.861 trillion +9.88%.
- Total Assets N49.091 trillion +13.37%.
- Customers’ deposits N36.56 trillion +15.56%.
- Share capital and premium: N351.340 billion
- Total equity: N3.618 trillion +30.17%