Ecobank Group, one of Africa's leading pan-African banking institutions, has released its full-year audited financial results for 2024. The results, released on March 31, reflect a strong combination of strategic execution, operational efficiency and resilience amid a challenging economic situation across the continent. With net revenues reaching $2.1 billion and earnings per share rising to 1.36 US cents, Ecobank has solidified its position as a banking powerhouse in Africa, offering a prominent profit margin (Rote) of 32.7% from 24.9% in 2023.
Performance in 2024 demonstrates the success of Ecobank's growth, transformation and return (GTR) strategy, a multi-year roadmap designed to leverage the bank's vast geographic footprint, increase profitability and drive innovation. It reached $333 million from a surge in 16% post-tax profits to shareholders of Ecobank Transnational Incorporated (ETI) and the concrete carrying value per share increases by 4% to US cents.
Navigate volatility
Ecobank's economic success in 2024 saw a 18% increase in net revenue in certain currencies to $2.1 billion. This growth was supported by stable, repetitive fees and fee revenue streams. This increased from 23.5% in the previous year to 25.1% of total revenue. This shift highlights Ecobank's ability to diversify revenue streams beyond traditional profit-based revenue, a key factor in navigating volatility in the African market.
Equally notable was the disciplined approach to banks' cost management. Operating expenses fell 0.4% year-on-year. The feat achieved through a strategic cost continuity programme was deployed throughout its operations. This reduction contributed to a record 53% cost-to-revenue ratio (CIR). This shows operational efficiency comparable to some of the world's most performant banks, down from higher levels in the past few years.
The sediment changes further strengthened Ecobank's financial stability. By prioritizing low-cost current and savings accounts (CASAs), the bank has improved its CASA ratio to 86.4% from 83.4% in 2023. This strategic pivot not only reduced the cost of funds, but also deepened customer relationships and was shown by a 17% increase in customer deposits in certain currencies, reaching 20.4bn. Deposit growth reflects increased trust in Ecobank's brand, a growing customer base, and higher balances in current accounts. This is evidence that banks are focused on customer-centric banks.
The 2024 Africa's economic environment was not friendly, and Ecobank showed foresight and resilience due to high inflation, currency depreciation and rising interest rates testing financial institutions across the continent. The bank has aggressively increased its expected credit loss (ECL) reserves, a move aimed at ease the balance sheet against potential defaults in key markets such as Ghana, Nigeria and Zimbabwe.
A conservative approach
This conservative approach to risk management paid off. The loan-to-deposit ratio has improved from 53.9% to 53%, while the loan-to-asset ratio has dropped from 40.6% to 37.6%, reflecting the strength of liquidity. Meanwhile, the capital adequacy ratio rose to 15.8% at 80 basis points, well above regulatory thresholds, and Ecobank remains fully capitalized to survive future shocks. These metrics highlight banks that look not only to grow, but also to sustainability and stability.
Ecobank's consumer and commercial banking segment emerged as a key driver of growth in 2024. Banks have increased active customers by 9%, driven by a stronger customer activity ratio and increased product penetration per client. The revenues of the digital adoption barometer, Cards, increased 14% to $910 million, supported by the deployment of Premium Infinite cards in eight markets. This high-end card caters to wealthy customers, reflecting Ecobank's intention to gain a larger share of the premium banking segment.
Innovation also took the central stage in the launch of a new line of business in payments as a service, remittances and banking. The initiative aims to position Ecobank as a leader in seamless financial connections across Africa. Strategic partnerships with platforms such as Xtransfer, Transferto and Nium have expanded the bank's ability to pay and transfer cross-border trade.
Ecobank's Corporate and Investment Banking (CIB) division also achieved great results. Wholesale payments spiked, with Omni Plus transactions rising 25% to $73 billion, while RapidCollect volumes increasing 24% to $7.8 billion. These figures highlight the role of Ecobank as a trusted partner for businesses navigating Africa's complex trade ecosystems. Bank letters of credit sharing – a key instrument in international trade – has increased by 40 basis points to 5.2%, solidifying its dominance in this sector.
The CIB expansion was not limited to payments. The segment has deployed four new investment products to the Economic and Currency Union in Ghana and West Africa, signed assets under a power of attorney in Kenya, and introduced bond sales in five new markets. These moves reflect Ecobank's ambitions to deepen investment banking offerings and meet the evolving needs of corporate clients across the continent.
Important Year
Jeremy Awori, CEO of Ecobank Group, described 2024 as a “pivotal year” for the GTR strategy. “We have established a solid foundation for our company to grow now and in the future,” Awori said in a statement with the results. “We have produced strong revenues and revenue despite the challenging macroeconomic environment characterized by high inflation rates in major countries such as Ghana, Nigeria and Zimbabwe, currency depreciation across the African market, rising interest rates and stricter regulatory conditions.”
Awori pointed to a record memorization of 32.7% as a highlight of the year. “This underscores the strength of our pan-African franchise and disciplined executions,” he noted. “Excluding the negative impact of the foreign exchange rate, pre-tax profits rose 33% to $658 million, while net revenues rose 18% to $2.1 billion.” The CEO also highlighted the bank's operational efficiency, with CIR stable at 53%, and its robust balance sheet strengthened by an increase of $3 billion in deposits in certain currencies.
Risk management was another focus of AWORI. “We adopted a more conservative and careful lending approach, which strengthened our liquidity position and increased our expected credit loss reserves,” he explained. “Our capital adequacy ratio has risen to 15.8%, ensuring that it is comfortable above regulatory requirements and is suitable for future growth.”
The vast presence of ecobanks across 33 African markets is the basis of its success. “In 2024, we experienced a strong momentum in fees and fees, especially from cross-border payments and trade,” Awori says. “While card revenue has increased by 14% and supported by investments in digital banking platforms, the active consumer base has increased by 9%, with improved product penetration per customer.”
The GTR strategy added by Awori is about redefineing banks in Africa. “We sharpen the market focus across countries, drive growth in consumer and commercial banks, and expand payment, remittance and fintech capabilities,” he said. “We connect our customers to opportunities across borders, platforms and financial ecosystems.”
Nigeria, one of Ecobank's turnaround markets, is also featured in Awori's commentary. “Transforming Nigeria operations is ongoing and we continue to work with key stakeholders to improve performance and realize future possibilities,” he notes, showing optimism about the region despite its economic challenges.
Awori expressed her gratitude to the group's workforce and praised the dedication to success this year. “Together, we are building an institution that is ready for the future to unlock further value from our shareholders, support our clients and promote inclusive growth across the continent,” he concluded.
