Ecobank Digital Transactions up by 44%

The Ecobank Group’s commitment to make significant technological investments in order to provide consumers with frictionless financial transactions is already showing promising results.

This is owing to the fact that the financial institution has seen a marked growth in the value of transactions made through its variety of digital channels as a result of consumers’ faith in the goods.

According to the audited financial results of the corporation for the period ended September 30, transactions worth $59.1 billion were made through its digital channels in the first nine months of 2022, a rise of 44% over the $40.4% reported in the same time last year.

The Ecobank Omni Plus registered the greatest transaction value throughout the period with a value of $37.8 billion, according to a detailed examination of the company’s numerous digital channels. Ecobank recorded $4.2 billion throughout the time frame via its mobile app and Unstructured Supplementary Service Data (USSD).

Ecobank Online and Xpress Points (Agency Network) registered transactions totalling $755 million and $3.7 billion, respectively, while its Omni Lite channel recorded transactions worth $4.1 billion. The business also reported transactions through additional indirect digital channels worth $8.1 billion.

According to the lender’s financial statistics, revenue increased by 7% to $1.35 billion during the review period from $1.26 billion during the same period in 2021.

In comparison to the same time in 2021, its operating profit increased by 12% to $593 million from $528 million, while the profit before tax increased by 14% to $401 million from $352 million, and the profit distributed to shareholders increased by 7% to $196 million from $182 million.

Commenting on the results, the group chief executive of Ecobank, Mr Ade Ayeyemi, said, “We continued to deliver on our strategic priorities and are on track to meet full-year targets despite the complex operating environment.

Profit before tax rose by 14% or 48% at constant currency, while the group’s return on tangible equity hit a record of 21%. (i.e., excluding currency movements). These outcomes showcase the pan-African franchise’s tenacity, solid brand, and diversity.

In the consumer and wholesale payments, trade finance, and foreign exchange markets, the bank observed respectable client activity. Additionally, it kept expenditures under tight control despite inflationary pressures, improving the cost-to-income ratio from 58.3% the year before to 56.3% this year.

“The dampened economic outlook necessitated maintaining a sound balance sheet with adequate levels of liquidity and capital. As a result, our total capital adequacy ratio at 14.4% is well above our internal and minimum regulatory limits,” he added.