Ecobank Transnational Incorporated (ETI) reported a profit before tax of N584.02 billion for the first half of 2026, representing a decline from the N620.23 billion posted in the corresponding period of 2025, as rising credit impairment charges offset stronger interest income and improved operating performance.
The pan-African banking group, in its unaudited financial results for the six months ended June 30, 2026, nevertheless delivered a stronger second quarter, suggesting that its core banking operations remained resilient despite mounting credit risks.
Profit before tax for the second quarter rose 16.1 per cent to N313.79 billion, compared with N270.24 billion recorded in the first quarter.
The bank’s net interest income grew 6.6 per cent to N1.04 trillion, supported by higher yields on earning assets. Total interest income climbed to N1.52 trillion, with loans and advances contributing N747.04 billion, the largest component of interest earnings.
Income from treasury bills and other eligible bills increased 18.1 per cent to N323.07 billion, although income from investment securities declined by 5.1 per cent to N350.29 billion.
On the funding side, interest expenses fell 5.8 per cent to N486.78 billion, helped by lower borrowing costs and reduced interest paid on deposits from banks. However, interest expense on customer deposits rose modestly to N320.37 billion, remaining the group’s largest funding cost.
Non-interest income slipped 4.3 per cent to N732.90 billion, despite higher fee and commission income of N490.33 billion. Cash management services generated N232.47 billion, while credit-related fees contributed N132.58 billion.
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The improvement in fee income was overshadowed by weaker trading activities, as trading income and foreign exchange gains declined 10.4 per cent to N263.43 billion. Foreign exchange trading gains dropped sharply by 48.2 per cent to N154.57 billion, although a N55.12 billion foreign exchange translation gain partly cushioned the decline.
Operating expenses remained largely flat at N856.51 billion, with staff costs rising 2.9 per cent to N380.72 billion. Depreciation and amortisation expenses fell 6.7 per cent, while other operating expenses also edged lower.
The biggest drag on earnings came from credit impairment charges, which increased by 24.5 per cent to N328.66 billion, despite recoveries rising to N160.98 billion.
The increase in impairment provisions outweighed the bank’s stronger operating performance, leading to declines in both pre-tax and post-tax profit.
Loans and advances to customers fell 6.2 per cent to N15.90 trillion, while investment securities stood at N10.91 trillion. Cash and balances with central banks increased by 27.2 per cent to N10.77 trillion, reflecting stronger liquidity.
Financial analysts said the results reflected a bank facing higher credit risk while maintaining solid underlying earnings momentum.
A Lagos-based banking analyst said the decline in profit should be viewed in the context of prudent risk management rather than deteriorating operations.
“The key takeaway is that Ecobank’s core income remains healthy. Net interest income continued to grow, operating costs were largely contained, and the second quarter was stronger than the first. The increase in impairment charges reflects a cautious provisioning strategy amid macroeconomic uncertainties rather than weakness in the franchise.”