Ecobank Transnational Incorporated recorded higher revenue and profit in the first half of 2026, supported by strong growth in net interest income and improved performance across several of its African markets.

The pan-African banking group reported profit after tax of $296.1 million for the six months ended June 30, 2026, representing a 6% increase from the $278.8 million recorded during the same period in 2025.

Profit before tax also increased by 6% from $398.5 million to $423.0 million, while operating income, which the bank describes as revenue, rose by 15% to $1.28 billion from $1.12 billion.

However, when translated into Ghana cedis, revenue declined by 9% to GH¢14.19 billion, while profit after tax fell by 16% to GH¢3.28 billion. The difference between the dollar and cedi results reflects movements in exchange rates used to translate the group’s operations across different African markets.

Net interest income drives revenue growth

Interest income increased by 15% to $1.10 billion, compared with $956.4 million in the first half of 2025.

Interest expenses rose at a slower rate of 6% to $352.6 million, helping net interest income grow by 20% to $750.5 million.

Fee and commission income also increased by 14% to $355.1 million, while trading income and foreign exchange gains edged up by 1% to $190.8 million.

Overall, non-interest revenue increased by 8% to $530.8 million, supported by fees, commissions and trading activities.

Operating profit before impairment charges and taxation consequently rose by 16% to $661.0 million, compared with $568.1 million during the same period last year.

Higher impairment charges limit profit growth

Despite the strong revenue performance, Ecobank recorded a significant increase in impairment charges on financial assets.

Impairment charges rose by 40% from $169.6 million to $238.0 million. These charges represent provisions made by the bank to cover potential losses on loans and other financial assets.

Operating expenses also increased by 13% to $620.3 million. Staff expenses rose by 16% to $275.7 million, while other operating expenses increased by 12% to $304.5 million.

The sharp rise in impairment charges and operating costs meant that profit growth was slower than revenue growth.

Profit attributable to ordinary shareholders increased by 2% to $198.0 million, while non-controlling interests accounted for $94.5 million of the group’s profit.

Basic and diluted earnings per share increased by 2% to 0.805 US cents, compared with 0.788 US cents in the first half of 2025.

Second-quarter profit declines slightly

For the three months ended June 30, 2026, Ecobank’s operating income increased by 7% to $645.1 million.

Net interest income rose by 10% to $360.5 million, while non-interest revenue increased by 5% to $284.6 million.

However, second-quarter profit after tax declined by 2% to $153.5 million, from $156.3 million in the corresponding quarter of 2025.

Profit attributable to ordinary shareholders fell by 4% to $105.3 million, partly due to a 15% increase in impairment charges and an 11% rise in taxation.

Customer deposits rise to $27 billion

Ecobank’s balance sheet expanded during the first six months of the year, with total assets increasing by 3% from $34.49 billion at the end of December 2025 to $35.64 billion at the end of June 2026.

In Ghana cedi terms, total assets increased by 12% to GH¢404.54 billion.

Customer deposits rose by 7% to $26.99 billion, from $25.30 billion. This was one of the major drivers of the increase in the group’s operating cash flow.

Loans and advances to customers, however, declined by 2% to $11.52 billion. In Ghana cedi terms, customer loans increased by 6% to GH¢130.72 billion.

Cash and balances held with central banks increased sharply to $7.80 billion, from $5.88 billion, while loans and advances to banks rose to $3.33 billion.

Investment securities declined from $8.83 billion to $7.90 billion, while Treasury bills and other eligible bills increased to $2.36 billion.

Equity declines in dollar terms

Ecobank’s total liabilities increased to $32.90 billion, mainly due to higher customer deposits and borrowed funds.

Borrowed funds rose from $1.80 billion to $2.00 billion, while other liabilities increased to $1.76 billion.

Total equity declined by 4% from $2.86 billion to $2.74 billion in dollar terms. However, it increased by 4% to GH¢31.11 billion when translated into Ghana cedis.

Equity attributable to ordinary shareholders stood at $1.87 billion, while non-controlling interests amounted to $798.8 million.

The group also recognised a foreign currency translation loss of $239.1 million and a $21.2 million reduction in the fair value of some financial assets. As a result, total comprehensive income fell sharply from $670.2 million to $35.7 million.

Corporate and Investment Banking remains the largest contributor

Ecobank’s Corporate and Investment Banking division remained the group’s largest business segment during the period.

The division generated operating income of $709.2 million and profit before tax of $339.2 million.

Commercial Banking recorded operating income of $322.7 million and profit before tax of $115.9 million, while the Consumer Banking division generated operating income of $286.3 million and profit before tax of $83.8 million.

Geographically, the Central, Eastern and Southern Africa region generated the highest operating income at $469.8 million and profit before tax of $250.9 million.

The Anglophone West Africa region, which includes Ghana, recorded operating income of $371.7 million and profit before tax of $220.4 million.

The UEMOA region generated profit before tax of $178.1 million, while Nigeria recorded profit before tax of $5.9 million, down from $9.4 million in the first half of 2025.

Strong operating cash flow

Net cash generated from operating activities increased substantially to $1.83 billion, from $567.1 million in the first half of 2025.

The improvement was supported mainly by a $2.23 billion increase in customer deposits.

Ecobank also generated net investing cash flow of $170.5 million and net financing cash flow of $189.9 million.

Cash and cash equivalents consequently increased to $8.29 billion at the end of June 2026, compared with $5.38 billion at the end of the corresponding period in 2025.

Overall, Ecobank delivered strong revenue and operating profit growth during the first half of 2026. However, the rise in impairment charges, operating expenses and foreign currency translation losses limited the growth in profits available to shareholders.