Ecobank Transnational Incorporated : 2023 Ecobank Group Annual Report 2023

A BETTER BANK

FOR A BETTER AFRICA

Ecobank Group Annual Report 2023

A BETTER BANK

FOR A BETTER AFRICA

ECOBANK GROUP

ANNUAL REPORT

2023

Contents:

2	Ecobank Group Annual Report 2023

Section 1		Who we are
6	Our Vision and Mission
8	Our Performance
10	Who we are
12	We are a leading pan-African banking group
14	Our Strategy
16	Growth
18	Transformation
Section 2		Group Chairman and Management

1. A Letter from the Group Chairman

1. A Letter from Our Group CEO

38 A Letter from Group Executive, Consumer Banking

42 A Letter from Group Executive, Commercial Banking

46 A Letter from Group Executive, Corporate and Investment Banking

Section 3		Corporate Governance
54	Board of Directors
56	Directors' Biographies
64	Directors' Report
68	Group Executive Committee
70	Corporate Governance
82	Sustainability Report
90	Foundation Report
94	People Report

Section 4		Risk Management
106	Risk Management

Section 5		Business and Financial Review
132	Business and Finance Review
Section 6		Financial Statements

1. Statement of Directors' Responsibilities
2. Auditors' Report

164 Consolidated Financial Statements

169 Notes to Consolidated Financial Statements

1. Statement of Value Added
2. Five-yearSummary Financials
3. Parent Company's Financial Statements

Section 7		Corporate Information

1. Share Capital Overview
2. Share Capital History

1. Contact Information

3

01

Who We Are

4	Ecobank Group Annual Report 2023

Section 01 Who We Are

Pan-African.

Diversified.

Customer-centric.

A better way.

A better Africa.

5

Vision and mission driven

6	Ecobank Group Annual Report 2023

Section 01 Who We Are

Our vision:

To build a world class Pan-African bank and contribute to the economic development and financial

integration of Africa.

Our mission:

To provide all of our customers with convenient and reliable financial products and services.

7

Our performance

For the year ended 31 December
(in millions of US dollars, except per share and ratio data)	2023
Selected income statement data
Operating income (net revenue)	2,064
Operating expenses	1,113
Pre-provision,pre-tax operating profit	951
Impairment charges on financial assets	330
Non-conversion premium on bonds	0
Operating profit after impairment charges on financial assets	621
Profit before tax	581
Profit for the year	407
Profit after tax attributable to ETI shareholders	288
Profit attributable per share ($):
•	Basic	1.170
•	Diluted	1.170
Selected statement of financial position data
Net loans and advances to customers	10,543
Total assets	27,230
Risk-weighted assets	13,933
Deposits from customers	19,974
Equity attributable to ordinary shareholders	1,054
Total equity	1,734
Ordinary shares outstanding (in million)	24,730
Book value per ordinary share ($ cent)1	4.26
Tangible book value per ordinary share (TBVPS) ($ cent)	4.04
ETI share price ($ cent)2
•	High	2.84
•	Low	2.53
•	Period end	2.29
Market capitalisation ($ million)	567
Selected ratios
Profit for the year to average total assets (ROA)	1.4%
Profit for the year to total equity (ROE)3	23.5%
Profit for the year to tangible total equity (ROTE)	24.9%
Common equity Tier 1 capital ratio	10.4%
Tier 1 capital ratio	11.1%
Total capital adequacy ratio (CAR)	15.0%
Net interest margin	5.4%
Cost-to-income ratio	53.9%
Non-performing loans ratio	5.4%
Non-performing loans coverage ratio	86.5%

2022

1,862

1,050

811

198

40

573

540

367

286

1.165

1.165

11,003

29,004

15,356

20,813

1,395

2,027

24,730

5.64

5.30

3.15

2.05

2.30

569

1.3%

19.6%

21.1%

9.6%

10.2%

14.2%

4.9%

56.4%

5.2%

86.5%

1 The Book value per ordinary share (BVPS) is computed by dividing the Group's shareholders' equity at period-end with the number of ordinary shares outstanding at period-end.

2 ETI share price on the Nigerian Stock Exchange at period-end converted into US dollars using Bloomberg applicable rate at period-end.

3 ROE is computed using profit available to ETI (parent company) shareholders divided by the average end-of-period ETI shareholders' equity. ROTE is computed using profit available to ETI shareholders divided by the average end-of-period tangible shareholders' equity. Tangible shareholders' equity is ETI shareholders' equity less non-controllinginterests, goodwill and intangible assets.

8	Ecobank Group Annual Report 2023

Section 01 Who We Are

Return on tangible equity	Total CAR
24.9%	15.0%
improved from 21.1%	improved from 14.2%
in 2022	in 2022

Profit before tax	Net revenue
$581m	$2.1bn
up 8% from 2022	up 11% from 2022

Sustainability-linked	Women in management
financing	& executive positions
$500m	31%

Up from $350m in 2022

9