Ecobank delivered a strong financial performance in 2025, crossing the N1 trillion profit mark as rising treasury income increasingly complements its traditional lending business.
Gross earnings rose by 16 per cent year-on-year to N4.88 trillion, while profit after tax climbed 23 per cent to N904.7 billion, driven by improved margins and diversified income streams.
A key driver of the performance was a strategic shift in asset allocation. With customer deposits growing faster than loans, up about 15 per cent to N36.4 trillion compared to 10 per cent loan growth, the bank deployed excess liquidity into high-yield government securities.
Income from treasury bills and investment securities expanded significantly, generating over N1.4 trillion and contributing about 29 per cent to gross earnings, narrowing the gap with loans, which accounted for roughly 33 per cent.
The bank increased its treasury bills holdings by 28 per cent to N3.3 trillion and investment securities by 19 per cent to N12.7 trillion, boosting returns in a high-interest-rate environment. This, alongside a low cost of funds and a strong current and savings account mix of over 87 per cent, helped lift net interest margin to 6.2 per cent.
Non-interest income also strengthened, now accounting for over 40 per cent of total revenue. Growth was supported by higher fees from cash management, credit-related services, card transactions, and gains from trading and foreign exchange activities.
Improved cost discipline further enhanced performance, with the cost-to-income ratio declining to a five-year low of 48.3 per cent, reflecting efficiency gains under the group’s transformation strategy.
Segmental performance showed that Corporate and Investment Banking remained the dominant earnings engine, contributing N2.518 trillion in interest income and N1.1 trillion in profit before tax. However, this also highlights increasing reliance on treasury-driven income and sensitivity to interest rate movements.
Regional performance was mixed. While Central, Eastern and Southern Africa and Anglophone West Africa posted strong growth, the Nigerian business recorded a pre-tax loss, largely due to asset quality pressures following the end of regulatory forbearance.
This led to a spike in impairment charges, which rose to N707.5 billion, with Nigeria accounting for a significant portion due to reclassified legacy exposures and higher non-performing loans.
Looking ahead, Jeremy Awori, CEO, said the bank expects improved asset quality as stricter risk controls take effect, though global uncertainties and geopolitical tensions remain key risks.
Despite these challenges, Ecobank’s diversified earnings base, strong margins, and disciplined execution position it well. The bank has resumed dividend payments, declaring 0.16 cents per share, up from 0.11 cents, signalling confidence in sustained profitability.
With a year-to-date stock gain of over 60 per cent and relatively low valuation multiples, analysts say the bank remains attractively priced, even as it navigates evolving macroeconomic conditions.
