Ecobank Gets Shareholders’ Approval to Raise Additional $250m Tier-1 Capital

Kayode Tokede 

Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group, yesterday held its 37th Annual General Meeting (AGM) in Lomé, Togo, which was followed by an Extraordinary General Meeting (EGM).

The shareholders at the meeting authorised the board of directors to raise $250million additional Tier-1 capital (AT1) as the Pan-African financial institution undergoing major transformation.

The AT1, according to the financial institution, shall be available for subscription, with first-order priority to a maximum of 100 shareholders on a first-come, first-served basis and the second-order priority to any other interested investors.

Other key resolutions approved by shareholders include the approval of the 2024 accounts, the transfer of total annual profits to retained earnings, and the renewal of mandates of Mrs. Aichatou Agne Pouye and Dr. Aasim Qureshi. 

The shareholders also approved the appointment of Ms. Esther Chibesa as a new director, the appointment of an additional auditor, and a modification of the Articles of Association on the requirement of mandatory public offer to acquire shares.

The endorsement by shareholders came on the back of Ecobank’s record profits and strong earnings and returns in 2024. 

The Group achieved profit before tax of $658 million, up 13 per cent from $581 million in 2023. In Constant Currency – which excludes the adverse effects of

translating local currencies into ETI’s reporting currency the US dollar – the increase in profit before tax was an even more impressive 33 per cent. 

The Group also recorded a record return on tangible equity of 32.7 per cent (24.9 per cent in 2023) and its lowest ever cost-to-income ratio of 53.0 per

cent (2023: 53.9 per cent). 

This performance was delivered despite a challenging economic environment characterised by high inflation, rising interest rates, currency depreciation in many sub-Saharan African markets, and tightening regulation in Ghana, Nigeria and Zimbabwe. 

The Chairman of the Board of Directors, Ecobank Group, Papa Madiaw Ndiaye said: “Ecobank Transnational Incorporated is delivering on itsstrategic priorities even as the external environment poses real challenges. Since I became Chairman last June, I have seen first-hand how our strong  Board and leadership have worked together to drive the performance of this world-class pan- African institution. Ecobank is successfully leveraging technology, innovation and partnerships to  deliver on its purpose of contributing to the economic development and financial integration of the continent. I pay tribute to the 14,000+ Ecobankers whose hard work, dedication and intense focus on our customers are fundamental to the Bank’s success.”

The Chief Executive Officer, Ecobank Group, Jeremy Awori commented: “Ecobank’s strong performance in 2024 reflects positive results from our high-impact Growth, Transformation and Returns strategy, the competitive advantage and innate diversification provided by our footprint across 33 countries. We have succeeded in accelerating growth in Consumer and Commercial Banking, expanding the efficiency of our market-leading solutions across Payments, Remittances

and Banking as a Service, and in sharpening our focus on key country markets. Our progress in building a future-proofed financial services organisation will help us deliver greater value for our shareholders, support for our clients, and drive inclusive growth across Africa.”

The focus of Ecobank today is on strengthening the balance sheet. This will serve to protect the bank from any headwinds the Group may experience in the external environment and pave the way for accelerated growth. To achieve this, the Board of Directors made a difficult decision not to pay dividends this year.

Commenting about this decision, Group Chairman ETI explained: “We acknowledge that not paying dividends again is disappointing and that explaining our reasoning is crucial. As we continue to deliver against the GTR strategy, we needed to choose between complying with existing debt covenants or paying dividends. 

“We believe that reducing the debt burden is in the best interest of the company over the longer term and will serve our shareholders best as we build a resilient bank equipped to grow sustainably, deliver strong returns and add value for decades to come.”

Since year end, Ecobank has maintained its momentum with major enhancements to the benefits and availability of the multi-award winning ‘Ellevate’ gender financing solution for female entrepreneurs.