By Ayomide Otitoju
Ecobank Transnational Incorporated (ETI) posted a 17% year-on-year increase in profit after tax to $122.5 million for Q1 2025, but financial analysts warn that rising liabilities and low share liquidity could pose future challenges.
Revenue grew 4% to $516.3 million, but the bank’s liabilities rose significantly to $26.9 billion, up from $26.1 billion at the end of 2024—outpacing asset growth and potentially straining long-term financial stability.
Share liquidity remains thin. ETI’s NGX-listed shares recorded only $12.63 million in total liquidity over the past year, averaging $1.05 million monthly, raising concerns about investor exit flexibility without affecting share prices.
Cash flow analysis shows net cash from operating activities at $101.1 million. However, investing activities led to an outflow of $226.5 million, primarily for securities purchases, while $48 million was used for financing—indicating a dependence on cash reserves.
Additional concerns include ongoing tax reviews in subsidiaries and unresolved legal cases, highlighting operational vulnerabilities. While ETI celebrates its Q1 performance, analysts caution investors to monitor the rising liabilities and limited liquidity, which may impact performance in coming quarters.
