Despite having a rough start in the year, ETI’s 2020FY financial scorecard was better than expected. Gross earnings dipped slightly (-0.16% YoY to NGN841.14bn), dragged by non-interest income (-6.50% YoY). Negative growth was posted across all non-interest revenue streams, including fees income (-2.49% YoY) and net trading income (-4.19% YoY). On the other hand, interest income increased by +3.99% YoY, as the stock of interest earning assets grew substantially by 23.24% YoY (to NGN8,722.43bn). The growth in interest income was driven by income on treasury bills (+20.07% YoY), investment securities (+13.82% YoY), and customer loans (+3.41% YoY), all of which constitute 96.14% of total interest income. Our 2021FY projection is a +14.56%YoY growth in gross earnings (to NGN963bn) supported by both interest income (+17.18% YoY) and non-interest income (+8.77% YoY).
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