ECOBANK CELEBRATES REMARKABLE GROWTH ALIGNED WITH ECOBANK GROUP'S SUCCESS

Ecobank Tanzania Managing Director - Dr. Charles Asiedu as he goes into details of the remarkable financial results of the bank for 2023 and Q1 of 2024.

Dar es Salaam, June 2024 – Ecobank Tanzania proudly announces exceptional growth and significant achievements for Q1 2024 which was a continuation of robust performance of the financial year 2023. The bank attributes its success to the steadfast support of its customers, partners, and employees.

In the first three months of the year, revenues increased by 66% to almost TZS10 billion compared to Q1 2023 following increased lending to support the economy of Tanzania and growing business volumes underscored by customer acceptance of its products. Growing by nearly 5 times compared to Q1 2023, profit before tax was TZS3.5 billion, making the bank among the best performing banks on the market. The profit growth was supported by controlled cost and decreased impairment charge arising from Non-Performing Loans (NPL) ratio consistently being under 3% for the past two years. Operating efficiency continued to improve resulting from widening positive jaws between revenue and cost. Thus, cost to income ratio trended to less than 60% for the first time compared to 77% a year ago. We also returned better to shareholders as annualized return on equity improved to 44% from just 12% in 2023.

These impressive results reflect the increasing customer confidence in our business as deposit grew over the one-year period by 68% to TZS 313 billion influencing assets growth of 27% to TZS 415 billion. On the back of strong growth in deposits, we were able to support our client businesses as we grew our loan book by more than TZS 65 billion to TZS 157 billion from TZS 90 billion.

Ecobank Tanzania's financial performance in 2023 was remarkable. Revenue surged by 48%, reaching TZS 31.26 billion, up from TZS 21.11 billion in 2022. Profit before tax (PBT) increased tremendously by 496%, from TZS 1.61 billion in 2022 to TZS 9.59 billion in 2023. The bank's cost-to-income ratio improved significantly, decreasing from 90.56% in 2022 to 65.1% in 2023, reflecting effective cost management strategies. The loans and advances portfolio grew by 79%, from TZS 91.75 billion in 2022 to TZS 164.50 billion in 2023. Customer deposits rose by 48%, from TZS 185.97 billion in 2022 to TZS 274.59 billion in 2023, demonstrating strong customer relationships and trust in Ecobank's services. Total assets increased by 27%, reaching TZS 406.69 billion in 2023.

With these exceptional results, the bank holds a commanding market position, leading by substantial margins in key industry metrics in a 40+ banks market. Ecobank Tanzania ranks third highest in terms of YoY total assets growth at 26.76%. Additionally, with a YoY growth in customer deposit of 48.33% ranking third highest YoY growth in the market, Ecobank Tanzania demonstrates a significant share of customer funds, while also leading in loans and advances with a remarkable 79.30% share, the highest YoY growth in the market. Furthermore, Ecobank Tanzania's YoY revenue growth of 48.50% reflects its strong revenue generation compared to other banks. These figures underscore Ecobank Tanzania's competitiveness in the banking sector, solidifying its position as a key player in the market. The bank operates five branches across Dar es Salaam, Arusha, and Mwanza, with an extensive network of ATMs and over 700 agents nationwide, ensuring wide accessibility to its services.

These achievements align with the broader success of the Ecobank Group, the pan-African financial services conglomerate. Despite the challenging operating environment in 2023, the Ecobank Group reported a return on tangible shareholders’ equity of 24.9% and increased profit before tax by 8% (or 34% at constant currency), reaching $581 million. Net revenue surpassed the $2.0 billion mark for the first time since 2015, growing by 11% (or 31% at constant currency) to reach $2.1 billion. This performance highlights the early successes of the Group's 5-year Growth, Transformation, and Returns (GTR) strategy.

Looking ahead, Ecobank Tanzania is committed to enhancing its services, expanding its reach, and fostering partnerships that drive growth and development in Tanzania. The bank remains dedicated to supporting businesses and individuals in achieving their financial goals, further solidifying its position as a key player in the Tanzanian banking sector.