In FY'23, ETI's earnings defied notable currency weaknesses in Zimbabwe (- 89.0%), Nigeria (-50.0%), and Ghana (-29.0%), expanding by 11.0% to $406.9 million. The performance highlighted the more profound impact of sustained net-interest margin expansion in key operating regions, which drove net interest income (NII) higher, and a robust trading income. Elsewhere, in USD terms, the bank reported a balance sheet contraction, with total assets declining by c.6.0% in FY’23 due to the mentioned currency weaknesses.
For FY'24, we adjusted our expectations for NIM and interest-earning assets (IEA) to 5.7% and $20.5 billion, respectively (vs 5.4% and $21.4 billion in FY’23) - leading us to a 2.1% YoY growth in FY'24 estimated NII. The modest uptick in NIM reflects the impact of elevated yield environment, while the expected contraction in IEA is consistent with the negative impact of currency weaknesses in major operating regions. Elsewhere, we project non-interest revenue (NIR) to grow slightly by 3.0% (vs. 5.3% in FY’23), given observed weaknesses in trading income in the first quarter (-9.0% YoY). Consequently, we now expect FY'24 earnings to grow by a mild c.8.0% to $439.6 million.
