Ecobank Transnational Incorporated : 9M 2021 Earnings Results Presentation

Ecobank Group

9M 2021 Earnings Investor Presentation

7 December 2021

We Have Turned The Corner And Are Delivering On Our Strategic Priorities

1 Building Back Better

Ade Ayeyemi, Group Chief Executive Officer

Prevailing macro dynamics

The Great Vaccination Divide

Real GDP Growth Rate: Recovery continues but momentum has been

Inflation Trends

(% of population)

weakened by the pandemic

(3mth moving average; Ann.% chg)

2020

2021

2022

6.2%

6.0%

6.5%

4.8%

4.7%

4.6%

5.3%

3.7%

4.2%

3.6%

3.6%

4.1%

2.1%

2.5%

2.6%

2.7%

0.4%

2.0%

1.9%

SSA

Oil

Nigeria

MIC(2)

Ghana

Côte d'Ivoire

Cameroon

LIC(3)

-1.7%

-2.5%

-1.8%

-4.2%

-1.5%

Exporters(1)

• 10.6% and 7.0% of Africa's population

Inflation

have been partially and fully vaccinated,

•

Inflationary pressures persist

•

respectively as of 1 Dec 2021

•

Higher food and oil prices, especially for importers, means that price

The large disparities in vaccine access and

pressures are anticipated to stay elevated in 2020 in some EM and FM

in policy support are driving economic

•

economies

•

outlook divergencies

Underlying drivers of increases in headline inflation are - pickup in

Greater support to COVAX and removal of

economic activity, rapidly rising commodity prices, and supply chain

trade restrictions to accelerate flow of

bottlenecks

vaccines (only 19% of 850m doses

pledged to COVAX by the G7 has been

•

delivered)

Higher commodity prices

Omicron4, the new variant, is alleged to be

•

Rising commodity prices to benefit commodity exporters

spreading faster than the Delta strain, but

hospitalisations remain muted.

Sustained		Could push advanced
rise in inflation		economies to withdraw
		monetary accommodation
		and disrupt financial markets

Capital outflows and exchange rate depreciation likely to be impacted

Depreciation of our major operating currencies vs USD as of 9M21 vs 9M20 - $/XOF: 1.1%, $/NGN: 6.6%,$/GHS: 2.8%

Monetary policy tightening by Central Banks

1. Oil Exporters include Nigeria, Angola, Gabon, Chad, Equatorial Guinea
2. Middle-IncomeCountries include South Africa, Ghana Côte d'Ivoire, Cameroon, Zambia and Senegal, Botswana, Cabo Verde, Eswatini, Lesotho, Mauritius, Namibia, and Seychelles
3. Low-IncomeCountries include Ethopia, Kenya, Tanzania, Benin, Burundi, Central African Republic, Comoros, Eriteria, Gambia, Guinea, Guinea-Bissau, Liberia, Madagascar, Malawi, Mozambique, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Togo, and Zimbabwe
4. Source - Bloomberg

Source: IMF World Economic Outlook, October 2021

© Ecobank Group 2021| 9M 2021 Earnings Presentation | 7 December 2021	3

Strong progress on our strategic priorities

Revenue

generation

Expense

Discipline

Reset Credit

Portfolio

Strengthen Balance

Sheet

Customer Excellence

Program

Continued

Digitalisation

$1.3bn

9M21 net revenue

+4% YoY

Record cost-to-

income ratio (CIR)

58.3%

CoR2: 1.43%

NPL3 ratio: 6.9%

Coverage: 91.2%

LDR4: 50.2%

Total CAR5: 14.7%

Improved CX8 score

• reduced complaints

Customer

engagement &

Fintech partnerships

• Diversification across products, business, and geography benefiting revenues
• Increasing Trade Finance and FX volumes; growing share of LC1 market
• Net interest income benefited from volume growth and stable margins
• Payment's volume up 34% YoY to $140m; digital sales up on online & mobile platforms
• "Manufacture centrally, distribute locally" strategy is driving cost saves and efficiency across the Group
• Adherence to stringent expense discipline
• Expect CIR of ~55% in the medium-term
• Asset quality improvements reflective of prudent risk culture
• Cost of risk reducing
• Reduced concentration risk in the credit portfolio
• Expect 100% coverage in the near term
• Record customer deposit growth driven by online and mobile platforms, partnerships with Fintechs and MNOs6, and deepening client relationships
• Strong internal capital generation and recent Tier 2 Sustainability Note and AT17 issuances have boosted CAR
• Continuous monitoring of CX score through Quality of Experience and Advocacy via monthly and quarterly surveys
• Rolled out of Microsoft Dynamics 365 For Customer Service across the Group
• Empowerment of Contact Center front line to be able to deliver First Contact Resolution
• Using technology to drive customer engagement
• Using API9 sandbox to drive innovative digital products
• Reinforcing Cyber Security
• Intelligent operations (data analytics, machine learning, artificial intelligence)

1. Letters of credit (2) Cost-of-risk (3) Nonperforming loans (4) Loan-to-deposits (5) Capital Adequacy Ratio (6) Mobile Network Operators

1. Additional Tier 1 (8) Customer excellence (9) Application programming interface

© Ecobank Group 2021| 9M 2021 Earnings Presentation | 7 December 2021	4

3

Driving Earnings Growth Through Sustained Positive Operating Leverage

Generating returns above the cost of capital

Ayo Adepoju, Group Chief Financial Officer