Ecobank Transnational Incorporated (ETI) has reported a 179% year-on-year (YoY) increase in post-tax profit, reaching N735.9 billion ($494 million) in its 2024 consolidated financial statement.

The impressive earnings growth was fueled by a surge in both interest and non-interest income, alongside improved cost efficiency. The bank’s pre-tax profit also more than doubled, rising from N376.5 billion in 2023 to N980.7 billion in 2024, highlighting the impact of higher lending activity and increased investments in securities.

Nigeria remained the dominant earnings driver in reported currency, with post-tax profit soaring by 179.3% to N455.7 billion, accounting for 61.9% of ETI’s total profit. However, in constant currency terms, Nigeria’s contribution to the $494 million post-tax profit was just 0.63%, underlining the impact of currency translation adjustments.

The bank’s gross earnings surged by 130.6% to N4.22 trillion, demonstrating the strength of its diversified revenue streams. Interest income rose by 128.3% to N2.76 trillion, while interest expenses climbed by 122.9% to N1.01 trillion. Net interest income stood at N1.75 trillion, representing a 131.5% growth compared to the previous year. Fees and commission income increased significantly, jumping by 151.8% to N879.9 billion, while expenses on commissions also grew to N98 billion, reflecting a 136.4% rise.

Trading and foreign exchange gains more than doubled, reaching N538.8 billion, contributing significantly to the bank’s overall profitability. Non-interest revenue expanded by 135% to N1.36 trillion, reinforcing the strength of ETI’s diversified income streams. Operating income grew by 133% to N3.11 trillion, while operating expenses rose by 129.2% to N1.65 trillion. The bank’s profit after tax stood at N735.9 billion, marking an increase of 179.3% year-on-year. Basic earnings per share rose to N20.19, up by 166.4% from the previous year.

In terms of assets, ETI reported a total asset base of N43.3 trillion, reflecting a 67.1% increase. Customer deposits grew significantly to N31.64 trillion, up by 66.4% from the previous year, while shareholders’ funds rose by 68.4% to N2.78 trillion.

A deep dive into ETI’s financials shows that core operating income was the key driver behind its remarkable earnings growth. The bank benefitted from both interest and non-interest revenue streams, reinforcing its strong financial position. Interest income remained the largest revenue source, contributing over 65% of total earnings. This was primarily driven by higher lending activity, as ETI expanded loans and advances to customers. The bank also increased its investments in securities, which grew from N6.3 trillion to N10.68 trillion, providing a steady revenue stream despite market fluctuations.

However, this aggressive expansion came at a cost. Impairment charges on loans surged, pushing the bank’s non-performing loan (NPL) ratio to 6.7%. The cost of risk increased to 1.8%, marking the second-highest level in five years. Interest expenses also climbed sharply due to the rising cost of deposits and borrowings in a high-interest-rate environment. The expansion in customer deposits led to higher interest expenses, which rose from N257.2 billion to N559.4 billion. Borrowings nearly tripled to N306 billion, further increasing financing costs.

However, ETI managed to maintain strong net interest income, reflecting its ability to manage lending spreads effectively. Beyond interest income, non-interest revenue also played a crucial role in driving profit growth. The bank saw a significant rise in fees and commissions, driven by increased cash management services and credit-related fees.

Foreign exchange and trading gains also contributed significantly, more than doubling in value. These robust non-interest revenue streams helped cushion the impact of rising costs and bolstered the bank’s overall earnings.

ETI’s ability to contain costs was another major factor in its strong financial performance. The bank reduced its cost-to-income ratio to 53%, marking its best efficiency level in five years despite inflationary pressures and rising operational expenses. This improvement underscores the bank’s efforts to optimize its cost structure while maintaining revenue growth.

In reported currency, Nigeria remained the largest earnings contributor, reinforcing the country’s significance to ETI’s overall financial performance. However, in constant currency terms, its contribution was significantly lower due to the impact of foreign exchange translation.

While ETI’s 2024 financial performance was exceptionally strong, financial analysts have pointed out key challenges to watch moving forward. The bank’s rising impairment charges pose a potential risk, as its aggressive lending strategy has led to higher provisions for bad loans. Managing credit risk will be critical to sustaining profitability in the long run.

Another challenge is the high borrowing cost, as ETI’s borrowings nearly tripled. The bank must strategically manage its funding expenses to maintain profitability in a high-interest-rate environment. Additionally, currency translation risks remain a concern. While Nigeria is the dominant earnings contributor in reported currency, its impact diminishes when adjusted for exchange rate fluctuations.

Luxury automaker Ferrari announced a 10% price increase on several of its models following President Donald Trump’s decision to impose a 25% tariff on imported cars. The move, which takes effect after April 1, could add as much as $50,000 to the price of a typical Ferrari, with the most exclusive models seeing increases of over $350,000.

Trump’s latest tariff escalation has drawn sharp criticism from financial analysts, with Gary Black, investment adviser and managing partner at The Future Fund, warning that the move could worsen economic conditions.

“Trump (aka Tariff Man) found further ways to push the economy into recession today (Thursday), signing a proclamation to implement a 25% tariff on auto imports, expanding a trade war designed to bring more manufacturing jobs to the U.S. and setting the stage for an even broader push on levies next week,” Black said.

Many car brands with factories in the US, including Tesla, are expected to be impacted by the tariff, due to the import of raw materials from targeted countries.

Ferrari’s Price Hikes: What Buyers Should Expect

In a statement released Thursday, Ferrari confirmed that prices will remain unchanged for all vehicles imported before April 2. However, for cars arriving afterward, the Ferrari 296, SF90, and Roma will maintain their current pricing, while other models will see substantial hikes.

The Purosangue SUV, which starts at $430,000, will now cost an additional $43,000, while the limited-edition F80, priced at over $3.5 million, will see a $350,000+ increase due to tariff-related adjustments.

Will Tariffs Affect Ferrari Sales?

While Trump argues that the tariffs will encourage automakers to build cars in the U.S., Ferrari—like many other foreign luxury car manufacturers—produces all its vehicles in Maranello, Italy, and has no U.S.-based production. Despite the added costs, Ferrari’s business model, which relies on exclusivity and high demand, is unlikely to see an immediate drop in sales.

With a one-year waiting list for most Ferrari models, the company remains in a strong market position, even with rising prices. However, the tariff policy could have broader implications for the luxury auto sector and global trade relations.

Ferrari CEO Benedetto Vigna, in a recent interview with CNBC, acknowledged the wealth of Ferrari customers but insisted the company must be cautious about passing on too much of the tariff burden.

“When we look at the client, we consider that these people, to buy a Ferrari, they have to work,” Vigna said. “We have to respect them. Because for us, the most important thing is the client. So we need to make sure that we treat them in the right way.”

Ferrari reaffirmed its financial targets for 2025 but warned that the tariffs pose a potential risk of 50 basis points on its profit margins. Following the announcement, Ferrari’s stock saw slight gains, while shares of the U.S. “Big Three” automakers—General Motors, Ford, and Stellantis—trended lower.

Trump’s tariff decision is expected to have ripple effects across the global auto industry, particularly as speculation grows that further trade restrictions could be introduced in the coming weeks. Meanwhile, Ferrari is preparing to launch its first all-electric model in October, a milestone that could shift its pricing strategy amid increasing regulatory pressures.

Wyoming is planning to launch its own stablecoin, called the Wyoming Stable Token (WYST). Governor Mark Gordon has indicated that the state aims to introduce this cryptocurrency as early as July 2025, following a testing phase. The WYST will be a U.S. dollar-pegged stablecoin, fully backed by reserves such as cash, U.S. Treasuries, and repurchase agreements, with a requirement to maintain at least 102% collateralization for stability. This initiative, supported by the Wyoming Stable Token Commission, is being developed in partnership with LayerZero, a blockchain interoperability protocol, allowing the token to operate across multiple blockchains like Ethereum, Solana, Avalanche, and others.

The move is part of Wyoming’s broader effort to lead in blockchain innovation, with potential profits from the stablecoin earmarked to support the state’s school system. This would mark the first state-issued stablecoin in the U.S., though it has sparked some debate, with critics like Rep. Tom Emmer labeling it a state-issued central bank digital currency (CBDC) by another name. Testing is currently underway, and if successful, the launch could set a precedent for other states.

Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins are pegged to a stable asset, typically the U.S. dollar, at a 1:1 ratio. This minimizes price fluctuations, making them practical for everyday transactions, savings, or as a reliable store of value in the crypto ecosystem. Stablecoins enable fast, low-cost transfers on blockchain networks, bypassing traditional banking delays and fees. For example, cross-border payments that might take days and incur high costs through banks can be near-instant and cheaper with stablecoins, benefiting businesses and individuals alike.

They provide a digital dollar alternative that’s accessible to anyone with an internet connection and a compatible wallet. This is especially valuable in regions with limited banking infrastructure or for unbanked populations, democratizing access to financial tools. Built on blockchain platforms like Ethereum or Solana (as with WYST), stablecoins can integrate with smart contracts. This enables automated, transparent financial applications—think lending, insurance, or escrow—without intermediaries, cutting costs and boosting efficiency.

Stablecoins act as a gateway, allowing users to easily move between traditional currencies and the crypto world. Traders use them to park funds during market volatility without cashing out to fiat, while businesses can accept them as payment without worrying about crypto’s wild price swings. Some stablecoin systems, like Wyoming’s, aim to generate profits from reserve investments (e.g., U.S. Treasuries). Wyoming plans to funnel excess returns into its school system, showing how stablecoins can fund public goods while maintaining their peg through over-collateralization (102% in WYST’s case).

When issued by a state like Wyoming, with its pro-blockchain laws, stablecoins can offer more legal certainty compared to private issuers. Wyoming’s framework, requiring full backing and audits, aims to build trust and reduce risks like those seen in past stablecoin failures (e.g., TerraUSD). In Wyoming, the WYST could streamline state financial operations, attract blockchain businesses, and position the state as a crypto hub—all while offering residents and users a stable, practical digital currency. That said, benefits depend on execution, maintaining the peg, managing reserves, and ensuring security are critical to delivering on these promises.