Ecobank Transnational Incorporated recorded a 33.04 per cent rise in its profit before tax for the first half of the year ended June 30, 2021.
In its unaudited financial statement for the first half of the year 2021, Ecobank said its operating income improved by 15.35 per cent year-on-year from June 30, 2020.
It said its operating profit before impairment charges and taxation rose by 32.62 per cent to N138.26bn.
At the end of H1 2021, Ecobank’s total assets increased to N11.02tn from N10.38tn in December 2020.
The loans and advances to its customers fell from N3.70tn in H1 2020 to N3.63tn in H1 2021, while customer deposits in all its operating locations increased by 7.38 per cent from N7.32tn to N7.86tn.
Its total equity depreciated by 1.06 per cent as it reduced from N811.75m to N803.18bn.
Ecobank said due to increased spending on property, equipment and investment securities in H2 2021, its free cash flow plunge to –N20.00bn, from a high of N16.85bn the previous year.
From its statement of changes in cash flow, it was evident that the firm’s cash and cash equivalents rose to N1.66tn from N750.48bn due to a N194.96bn loan and accounting for exchange rate differences.
In the notes section, Ecobank said, “The Zimbabwe economy was designated as hyperinflationary from 1 July 2019. As a result, the application of IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ has been applied to Ecobank Zimbabwe.
“In addition, South Sudan is also a hyperinflationary economy. These factors resulted in a net monetary loss of $23.10m.”
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