Ecobank Transnational Incorporated (ETI)’s third quarter, Q3 net income has increased by 31 percent on reduced costs as it continues to seek organic growth through business combinations.

For the first nine months through September, Ecobank’s Profit After Tax (PAT) appreciated by 31 percent to N52.49billion from N39.96billion in the same period of the corresponding year, 2013.

The bank grew gross earnings by 16 percent to N207.75billion while interest income were up by 10.70 percent N187.67billion in the period under review.

Market operators have attributed the growth at the top line level to the expertise management of resources by the boards of directors of the bank which led to a remarkable reduction in costs.

According to Group Chief Executive Officer, Albert Essien, “Our strong results for the first nine months of 2014 show solid revenue growth and a further reduction in our cost-income ratio,”   “The sustained improvement in our Nigeria business, the largest of our 36 countries in Africa, and another strong treasury performance, has helped deliver earnings per share up 26 percent.”

Breakdown of the result shows that, the bank’s cost to income ratio reduced to 66.56 percent in Q3 2014 from 71.20 percent the preceding year. Additionally, net margin moved to 19.51 percent in Q3 as against 17.23 percent the preceding year.

Ecobank is aggressive about lending as its loans to deposit ratio jumped to 71.63 percent in Q3 2014 from 66.80 percent as at Q3 2013. Loans and advances were up by 16.55 percent to N1.97trn in Q3 2014 from N1.69trillion as at Q3 2013. Deposit from customers also spiked by 8.69 percent to N2.75trillion in Q3 2014 from N2.53trillion as at Q3 2013.

Total assets were up by 10.69 percent to N3.83trn in Q3 2014 compared with N3.46trn the preceding year. Ecobank’s share price closed at N18.20 on the floor of the NSE while market capitalisation was N290.40billion.

Essien disclosed that the bank’s capital position was significantly enhanced recently, with the conversion of $75 million of loans by IFC funds in the third quarter and Nedbank’s subsequent investment of $493 million to reach a 20% shareholding in Ecobank.