Ecobank Group reports Profit before tax of US$398 million on Net revenue of US$1.6 billion for the nine months ended - Revenue down 3% $1,598 million (up 17% to NGN 316 billion) - Profit before tax down 2% to $398 million (up 18 % to NGN 79 billion) - Profit after tax down 5% to $306 million (up 15% to NGN 60 billion) - Total assets down 0.2% to $23.4 billion (up 21% to NGN 4,650.6 billion) - Total equity up 10% to $2.7 billion (up 34% to NGN 528.2 billion) Financial Highlights Income Statement: US$'000 NGN'000 US$'000 NGN'000 US$ NGN Revenue 1,597,909 315,833,816 1,650,345 268,951,223-3% 17% Profit before tax 397,995 78,665,481 408,045 66,497,733-2% 18% Profit for the period 305,669 60,416,836 322,099 52,491,400-5% 15% Financial Highlights Statement of Financial Position: US$'000 NGN'000 US$'000 NGN'000 US$ NGN Total assets 23,369,804 4,650,590,996 23,422,042 3,837,701,582-0.2% 21% Loans and advances to customers 11,543,704 2,297,197,096 12,058,429 1,975,773,592-4% 16% Deposits from customers 16,085,912 3,201,096,488 16,837,695 2,758,856,326-4% 16% Total equity 2,654,161 528,178,039 2,406,376 394,284,772 10% 34% Ade Ayeyemi, Group CEO of the Ecobank Group commented on the financial results: The operating environment in Middle Africa was challenging during the period. While our financial results were impacted by various factors, the strength of our diversified pan-african business model ensured a balanced outcome. We reported US$398 million in pre-tax profits, down 2% from a year ago, largely due to adverse currency movements and operational and impairment losses in the third quarter. We see looming headwinds ahead and as a result expect reported 2015 profits to come in lower than expected, but relatively flat in constant dollars. We had decent loan growth in our Corporate Bank business. And despite a decrease in Domestic Bank deposits, we increased the share of stable deposits within the deposit mix. With revenue growth challenged in the current environment, we would focus more on cost efficiency and invest in key initiatives in our Transaction banking, Cards, and ebanking businesses. Also, we are simplifying our operating model to better serve our customers and position the company for long term success. Ayeyemi concluded: We closed the period with healthy capital levels with a Tier 1 Capital ratio of 20.6% and Total Capital Adequacy ratio of 22.8% under Basel I. Our 19,000 plus employees, whom I am proud of, have been supportive of our customers Ade Ayeyemi Laurence do Rego Group Chief Executive Officer Group Executive, Finance www.ecobank.com 1
Unaudited Consolidated Statement of Comprehensive Income Sep Sep dec 2015 2014 2014 Closing rate 199.0000 163.8500 185.6900 159.7500 Average rate 197.6544 162.9667 166.3783 Year ended 31 December 2014 US$'000 NGN'000 US$'000 NGN'000 US$ NGN US$'000 NGN'000 Gross Earnings 2,083,603 411,833,393 2,139,873 348,727,970-3% 18% 2,940,604 489,252,650 Interest Income 1,298,846 256,722,685 1,274,770 207,745,018 2% 24% 1,731,628 288,105,254 Interest Expense (461,017) (91,122,059) (463,938) (75,606,429) -1% 21% (622,221) (103,524,004) Net Interest Income 837,829 165,600,626 810,832 132,138,588 3% 25% 1,109,407 184,581,251 Other Operating Income 760,080 150,233,190 839,513 136,812,635-9% 10% 1,170,474 194,741,498 Operating Expenses (1,024,995) (202,594,817) (1,098,626) (179,039,417) -7% 13% (1,491,133) (248,092,278) Impairment losses on financial assets (175,427) (34,673,926) (143,660) (23,411,791) 22% 48% (266,960) (44,416,351) Share of profit / (loss)of associates 508 100,408 (14) (2,282) -3729% -4500% (2,239) (372,521) Profit before tax 397,995 78,665,481 408,045 66,497,733-2% 18% 519,549 86,441,599 Taxation (91,235) (18,033,003) (83,589) (13,622,221) 9% 32% (122,024) (20,302,146) Profit for the period from continuing operations 306,760 60,632,478 324,456 52,875,512 397,525 66,139,453 Loss for the year from discontinued operations (1,091) (215,642) (2,357) (384,112) -54% -44% (2,755) (458,320) Profit for the period 305,669 60,416,836 322,099 52,491,400-5% 15% 394,770 65,681,133 Attributable to: Owners of the parent 265,150 52,408,076 277,429 45,211,679-4% 16% 337,863 56,213,128 - Continuing operations 265,739 52,524,522 278,702 45,419,100-5% 16% 339,351 56,460,621 - Discontinued operations (589) (116,446) (1,273) (207,421) -54% -44% (1,488) (247,493) Non-controlling interests 40,519 8,008,760 44,670 7,279,721-9% 10% 56,906 9,468,005 - Continuing operations 41,021 8,107,955 45,754 7,456,413-10% 9% 58,174 9,678,832 - Discontinued operations (502) (99,195) (1,084) (176,692) -54% -44% (1,267) (210,827) 305,669 60,416,836 322,099 52,491,400-5% 15% 394,770 65,681,133 Earnings per share for the profit from continuing operations attributable to owners of the parent during the year (expressed in United States cents per share): Basis (cents and kobo) 1.11 218.73 1.46 238-24% -8% 1.69 314.47 Diluted (cents and kobo) 1.06 209.14 1.28 208-17% 0% 1.60 266.17 Earnings per share for the profit from discontinued operations attributable to owners of the parent during the year (expressed in United States cents per share): Basis (cents and kobo) (0.00) (0.49) (0.01) (1.71) (0.01) (1.32) Diluted (cents and kobo) (0.00) (0.01) (0.01) (2.25) (0.01) (1.21) Total comprehensive income/(loss) for the period 33,978 6,715,950 224,627 36,606,347-85% -82% (5,700) (948,320) Total comprehensive income/(loss) attributable to: Owners of the parent 18,285 3,614,186 193,474 31,529,591-91% -89% (41,001) (6,821,605) - Continuing operations 18,875 3,730,632 194,747 31,737,010-90% -88% (39,513) (6,574,112) - Discontinued operations (589) (116,446) (1,273) (207,419) -54% -44% (1,488) (247,493) Non-controlling interests 15,693 3,101,763 31,153 5,076,756-50% -39% 35,301 5,873,285 - Continuing operations 16,195 3,200,958 32,237 5,253,447-50% -39% 36,568 6,084,112 - Discontinued operations (502) (99,195) (1,084) (176,691) -54% -44% (1,267) (210,827) 33,978 6,715,949 224,627 36,606,347-85% -82% (5,700) (948,320) Unaudited Consolidated Statement of Financial Position 31 December 2014 US$'000 NGN'000 US$'000 NGN'000 US$ NGN US$'000 NGN'000 Cash and balances with central banks 3,122,690 621,415,310 3,022,789 495,283,978 3% 25% 3,546,543 658,557,570 Financial assets held for trading 205,064 40,807,736 243,906 39,963,998-16% 2% 279,434 51,888,099 Derivative financial instruments 140,131 27,886,069 140,671 23,048,943-0.4% 21% 247,664 45,988,728 Loans & advances to banks 1,408,796 280,350,404 1,606,712 263,259,761-12% 6% 1,882,501 349,561,611 Loans & advances customers 11,543,704 2,297,197,096 12,058,429 1,975,773,592-4% 16% 12,311,642 2,286,148,803 Treasury bills and other eligible bills 1,171,755 233,179,245 951,624 155,923,592 23% 50% 1,276,120 236,962,723 Investment securities available for sale 2,179,306 433,681,894 2,023,884 331,613,393 8% 31% 1,435,580 266,572,850 Pledged assets 1,101,895 219,277,105 923,570 151,326,945 19% 45% 1,032,146 191,659,191 Other assets 837,365 166,635,635 681,097 111,597,743 23% 49% 486,318 90,304,389 Investment in associates 17,974 3,576,826 27,205 4,457,539-34% -20% 16,773 3,114,578 Intangible assets 387,213 77,055,387 481,549 78,901,804-20% -2% 410,257 76,180,622 Property, plant and equipment 881,801 175,478,399 866,263 141,937,193 2% 24% 920,690 170,962,926 Investment properties 166,545 33,142,455 167,338 27,418,331-0.5% 21% 168,167 31,226,930 Deferred income tax assets 107,237 21,340,163 107,324 17,585,037-0.1% 21% 113,110 21,003,396 23,271,476 4,631,023,724 23,302,361 3,818,091,849-0.1% 21% 24,126,945 4,480,132,416 Assets held for sale 98,328 19,567,272 119,681 19,609,733-18% 0% 116,617 21,654,611 Total Assets 23,369,804 4,650,590,996 23,422,042 3,837,701,582-0.2% 21% 24,243,562 4,501,787,027 Deposits from banks 1,139,593 226,779,007 894,665 146,590,860 27% 55% 912,841 169,505,445 Deposits from customers 16,085,912 3,201,096,488 16,837,695 2,758,856,326-4% 16% 17,436,970 3,237,870,959 Other deposits 402,242 80,046,158 484,216 79,338,792-17% 1% 573,300 106,456,077 Derivative financial instruments - - 6,162 1,009,644 n/a n/a 20,478 3,802,560 Borrowed funds 1,516,060 301,695,940 1,647,437 269,932,389-8% 12% 1,540,264 286,011,579 Other liabilities 1,262,316 251,200,884 855,677 140,202,611 48% 79% 801,573 148,843,949 Provisions 43,216 8,599,984 28,286 4,634,726 53% 86% 26,368 4,896,274 Current tax liabilities 70,439 14,017,361 66,653 10,921,094 6% 28% 69,061 12,823,937 Deferred income tax liabilities 56,913 11,325,687 42,042 6,888,631 35% 64% 65,405 12,145,054 Retirement benefit obligations 27,802 5,532,598 20,803 3,408,621 34% 62% 12,957 2,405,985 20,604,493 4,100,294,107 20,883,636 3,421,783,694-1% 20% 21,459,216 3,984,761,819 Liabilities held for sale 111,150 22,118,850 132,030 21,633,116-16% 2% 129,261 24,002,475 Total Liabilities 20,715,643 4,122,412,957 21,015,666 3,443,416,810-1% 20% 21,588,477 4,008,764,294 Net assets 2,654,161 528,178,039 2,406,376 394,284,772 10% 34% 2,655,085 493,022,733 Non controlling Interest 180,663 35,951,937 184,644 30,253,918-2% 19% 204,260 37,929,039 Attributable to owners of the company 2,473,498 492,226,102 2,221,732 364,030,854 11% 35% 2,450,825 455,093,694 Total Equity 2,654,161 528,178,039 2,406,376 394,284,772 10% 34% 2,655,085 493,022,733 - - - - (0) -
Unaudited Consolidated Statement of Cash Flows US$'000 NGN'000 US$'000 NGN'000 US$ NGN Cash flows from operating activities Profit before tax 397,995 78,665,481 408,045 66,497,734-2% 18% Net trading income - foreign exchange (33,891) (6,698,661) (29,757) (4,849,423) 14% 38% Net loss from investment securities 2,214 437,607 18 2,933 12200% 14820% Impairment losses on loans and advances 149,707 29,590,254 140,570 22,908,224 6% 29% Impairment losses on other financial assets 25,720 5,083,672 3,090 503,567 732% 910% Depreciation of property and equipment 64,346 12,718,273 77,113 12,566,849-17% 1% Net interest income (837,829) (165,600,626) (810,832) (132,138,588) 3% 25% Amortisation of software and other intangibles 17,477 3,454,407 21,151 3,446,908-17% 0.2% Profit on sale of property and equipment 804 158,934 (704) (114,750) -214% -239% Share of loss of associates (508) (100,408) 14 2,282-3729% -4500% Income taxes paid (98,450) (19,459,080) (93,442) (15,227,931) 5% 28% Changes in operating assets and liabilities Trading assets 74,370 14,799,630 (128,989) (21,020,907) -158% -170% Pledged assets (69,749) (13,880,051) 211,864 34,526,770-133% -140% Derivative financial assets 107,533 21,399,067 675 110,003 15831% 19353% Increase in other treasury bills 104,365 20,768,635 176,303 28,731,512-41% -28% Loans and advances to banks 188,973 37,605,556 (261,043) (42,541,295) -172% -188% Loans and advances to customers 715,537 142,391,796 (432,833) (70,537,407) -265% -302% Other assets (351,047) (69,858,353) 8,816 1,436,714-4082% -4962% Mandatory reserve deposits 367,180 73,068,766 (76,242) (12,424,829) -582% -688% Other deposits (171,058) (34,040,542) (193,744) (31,573,814) -12% 8% Due to customers (1,351,058) (268,860,542) 347,791 56,678,340-488% -574% Derivative liabilities (20,478) (4,075,122) 4,708 767,247-535% -631% Other liabilities 460,744 91,687,976 (70,421) (11,476,276) -754% -899% Other provisions 16,848 3,352,752 (225) (36,668) -7588% -9244% Interest received 1,298,846 256,722,685 1,274,770 207,745,083 2% 24% Interest paid (461,017) (91,122,059) (463,938) (75,606,429) -1% 21% Net cashflow from operating activities 597,573 118,210,047 112,758 18,375,849 430% 543% Cash flows from investing activities Acquisition of subsidiaries (2,723) (443,758) -100% -100% Purchase of software (19,325) (3,845,702) (5,606) (913,591) 245% 321% Purchase of property and equipment (101,594) (20,217,122) (93,254) (15,197,294) 9% 33% Proceeds from sale and redemption of securities (743,726) (148,001,474) (130,395) (21,250,034) 470% 596% Net cashflow used in investing activities (864,645) (172,064,298) (231,978) (37,804,677) 273% 355% Cash flows from financing activities Proceeds from/ (repayment) of borrowed funds (24,204) (4,816,550) 344,031 56,065,585-107% -109% Dividends paid to non-controlling (25,328) (5,040,272) (28,078) (4,575,778) -10% 10% Net cash (used in)/ from financing activities (49,532) (9,856,822) 315,953 51,489,807-116% -119% Net (decrease) / increase in cash and cash equivalents (316,604) (63,711,073) 196,733 32,060,979-261% -299% Cash and cash equivalents at start of year 2,373,090 440,659,156 1,641,749 262,269,478 45% 68% Effects of exchange differences on cash and cash equivalents (231,994) (13,874,045) (383,293) (57,183,170) -39% -76% Cash and cash equivalents at end of period 1,824,493 363,074,038 1,455,189 237,147,287 25% 53% CORPORATE ACTION Proposed Bonus - - Proposed Dividend - - Closure Date - - Date of Payment - - AGM Date - - AGM Venue - - Dividend per Share - -
2015 2014 Closing rate 199.0000 163.8500 Average rate 197.6544 162.9667 Unaudited Statement of Changes in Equity in US$'000 Share Capital PPE Revaluation Surplus Available for Sale Fin. Assets reserves Currency Translation Reserve Other Reserves Retained Earnings Total equity and reserves attributable Non-Controlling Interest Total Equity At 1 January 2014 1,409,001 65,601 (41,027) (412,781) 340,875 574,768 1,936,436 198,212 2,134,648 Changes in Equity for 2014: Currency translation differences (412,148) (412,148) (21,606) (433,754) Net changes in AFS investments, net of tax (39,405) (39,405) (39,405) Net gains on revaluation of property 71,998 71,998 71,998 Post-employment benefit obligations 691 691 691 Profit for the year 337,863 337,863 56,907 394,770 Total Comprehensive Income - 71,998 (39,405) (412,148) 691 337,863 (41,001) 35,301 (5,700) Dividend relating to 2013 - - (29,252) (29,252) Issued Share Capital 208,376 208,375 208,375 Treasury shares 1,932-1,932 1,932 Reclassification of share option reserve (1,066) 1,066 - - Share option exercised 34 34 34 Transfer and Reclassification 363,017 (363,017) - - Convertible loans - equity component 360,180 (15,132) 345,048 345,048 At 31 December 2014 / 1 January 2015 1,979,523 137,599 (80,432) (824,929) 688,385 550,680 2,450,825 204,260 2,655,085 Changes in Equity for 2015 : Currency translation differences (254,452) (254,452) (25,328) (279,780) Net changes in AFS investments, net of tax 8,089 8,089 8,089 Net gains on revaluation of property - - Post-employment benefit obligations - - Profit for the period 265,150 265,150 40,519 305,669 Total Comprehensive Income - - 8,089 (254,452) - 265,150 18,787 15,191 33,978 Issued Share Capital 41,541 (37,656) 3,885 3,885 Share option reserve exercised 185 (185) - - Dividend relating to 2014 - (38,788) (38,788) At 2,021,249 137,599 (72,343) (1,079,381) 688,200 778,174 2,473,498 180,663 2,654,161
2015 2014 199.0000 Closing rate 163.8500 197.6544 Average rate 162.9667 Unaudited Statement of Changes in Equity in LCY'000 Share Capital PPE Revaluation Surplus Available for Sale Fin. Assets reserves Currency Translation Reserve Other Reserves Retained Earnings Total equity and reserves attributable Non-Controlling Interest Total Equity At 1 January 2014 216,042,905 9,981,861 (6,736,769) (49,291,525) 50,556,298 88,792,881 309,345,651 31,664,367 341,010,018 Changes in Equity for 2014: Currency translation differences (19,133,178) (19,133,178) 2,228,442 (16,904,736) Net changes in AFS investments, net of tax (6,556,137) (6,556,137) (6,556,137) Net gains on revaluation of property 11,978,916 11,978,916 11,978,916 Post-employment benefit obligations 114,999 114,999 114,999 Profit for the year 56,213,062 56,213,062 9,468,090 65,681,152 Total Comprehensive Income - 11,978,916 (6,556,137) (19,133,178) 114,999 56,213,062 42,617,662 11,696,532 54,314,194 Dividend relating to 2013 - (5,431,860) (5,431,860) Issued Share Capital 38,693,280 38,693,280-38,693,280 Treasury shares 358,825-358,825-358,825 Reclassification of share option reserve (197,946) 197,946 - - Share option exercised 6,313-6,313 6,313 Transfer and Reclassification 67,408,710 (67,408,710) - - Convertible loans - equity component 66,881,824 (2,809,861) 64,071,963 64,071,963 At 31 December 2014 / 1 January 2015 321,983,148 21,960,777 (13,292,906) (68,424,703) 115,072,199 77,795,179 455,093,694 37,929,039 493,022,733 Changes in Equity for 2015 : Currency translation differences (17,647,657) (17,647,657) (2,267,025) (19,914,682) Net changes in AFS investments, net of tax 1,598,874 1,598,874 1,598,874 Profit for the period 52,408,076 52,408,076 8,008,760 60,416,836 Total Comprehensive Income - - 1,598,874 (17,647,657) - 52,408,076 36,359,293 5,741,735 42,101,028 Issued Share Capital 8,266,659 (7,493,544) 773,115 773,115 Share option reserve exercised 36,815 (36,815) - - Dividend relating to 2014 - (7,718,837) (7,718,837) At 330,286,622 21,960,777 (11,694,032) (86,072,360) 115,035,384 122,709,711 492,226,102 35,951,937 528,178,039
DISCLOSURES 1. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). 2. The accounting policies applied in the preparation of these financial statements were consistent with those applied in the preparation of the annual consolidated financial statements of 31 December 2014. 3. Contingent liabilities in respect of bankers acceptance, guarantees, letters of credits and commitments to extend credit not provided for in the financial statements were US$ 4.9 billion (NGN 979.7 billion) (: US$ 5.1 billion (NGN 843.8 billion)) 4. The financial statements do not contain untrue statements, misleading facts or omit material facts to the best of our knowledge.