Ecobank Transnational Incorporated (ETI) recorded a 28% increase in impairment charges to N613.3 billion in its 2025 financial year, highlighting mounting credit risk across its African markets despite robust profit growth.
The pan-African banking group’s profit after tax (PAT) rose 29% to N950.0 billion from N735.9 billion in 2024, while profit before tax (PBT) increased 30% to N1.28 trillion. According to the company’s unaudited financial statements filed with the Nigerian Exchange Limited (NGX), the higher impairment provisions largely stemmed from growing pressures on borrowers amid high interest rates, currency volatility, and weaker macroeconomic conditions across several African economies.
Key financial highlights include:
- Gross earnings: Up 14% to N4.82 trillion
- Operating income: Increased 18% to N3.67 trillion, driven by higher interest income and fee-based earnings
- Net interest income: Rose 22% to N2.14 trillion
- Fee and commission income: Grew 17% to N1.03 trillion
- Operating profit before impairment and tax: Up 29% to N1.89 trillion
On the balance sheet, Ecobank expanded its asset base by 14% to N49.44 trillion, with loans and advances rising 11% to N17.09 trillion, partly explaining the higher impairment charges. Customer deposits grew 15% to N36.45 trillion, while total equity surged 50% to N4.17 trillion, fueled largely by retained earnings.
Despite strong revenue growth, rising operating expenses, up 8% to N1.77 trillion (driven by a 16% increase in staff costs), combined with higher impairment charges, tempered the overall bottom-line impact.
In the fourth quarter of 2025, impairment charges rose slightly by 3% year-on-year, while PBT fell 4%, signaling continued pressure on asset quality toward year-end.
