(Ecofin Agency) - Pan-African bank group Ecobank reported an 8% rise in net profit for Q3 2024, reaching $340.5 million. This growth was largely driven by an 18% drop in the cost of risk, a key factor for the bank as it navigates Africa’s volatile currency environment. Ecobank’s net banking income, adjusted to counter currency fluctuations, totaled nearly $1.5 billion, remaining stable compared to last year.

According to CEO Jeremy Awori, without the impact of African currency devaluations on operations, Ecobank’s revenue would have increased by 17%, with pre-tax profit up 26%, totaling $491 million. Group net income would also have risen 28%, reaching $232 million. Awori emphasized that Ecobank’s growth expectations are supported by its focus on customer-driven services, allowing the bank to provide clients with needed products and solutions.

On the operational side, expenses fell slightly by 1%, reflecting the bank’s ongoing focus on efficiency. This cost control helped boost operating profit by 9%, reaching $490 million. Thanks to these gains, Ecobank achieved a 32.9% return on tangible equity and a 4% increase in earnings per share, which rose to $0.94. Ecobank, publicly traded on the BRVM, Ghana Stock Exchange (GSE), and Nigerian Stock Exchange, also raised $400 million in Q3.

However, Ecobank had to inject $10 million—$5 million in equity and additional Tier 1 capital—into its Nigerian subsidiary to meet the Central Bank of Nigeria’s (CBN) new minimum capital requirements. CEO Awori noted that Ecobank is actively developing broader capital plans for the Nigerian branch, which he sees as a key challenge for the group.