Ecobank Transnational Incorporated (ETI) banking group ended the first quarter of 2020 on a
net income from common operations of $48.3 million, a 22% decrease compared to the performance of
the same period in 2019. It is also its worst performance of the period since 2017, according to a
compilation of the group's results by ecofin.
This is the fourth consecutive year since 2017 that the net profit shares of the group which has its headquarters in Lomé,
in Togo, is declining. The company was indeed betrayed by its commission revenues which fell by
15% to just $183.3 million compared to $215.8 million in the first quarter of 2019. There is also a
67% decrease in the value of recoveries from $68.3 million to only $22.7 million $.
In this context, and despite a 21% increase in net interest income to $209.3 million, ETI has
achieved consolidated pre-tax income of $91.12 million for the period, down 11%. The Bank
is quite pessimistic about its performance in 2020. "Depending on how long the disturbance will take
caused by the coronavirus, our results for the rest of the year could be affected by the increase
Expected Credit Loss, lower revenues and volatility of our
results," reads the group's financial release.
If we add to this performance ordinary activities, extraordinary items such as earnings or
losses on foreign exchange transactions, ETI is left with a net loss share of $ 80.3 million and a
consolidated loss taking into account minority interests in its subsidiaries of $66 million. Alone
Good news of the period for the banking group, its cash flow has improved and now peaks at
$2.5 billion, after a major effort to reduce its debt.