ETI Gets Shareholders’ Approval to Raise $600m Capital, Ndiaye Emerges Chairman

Kayode Tokede

The shareholders of Ecobank Transnational Incorporated,  have approved the management’s decision to raise $600million fresh capital, among other key resolutions at its 36th Annual General Meeting (AGM) which was followed by Extraordinary General Meeting (EGM) held in Togo.

The shareholders during the AGM also approved the Appropriation of the profits, the renewal of mandates of Directors, and the election of Directors.

The AGM also approved the appointments of Papa Madiaw Ndiaye, Louis Adande and Terence G. Sibiya as Non-Executive Directors succeeding the retiring Directors. Alain Nkontchou, Mfundo Nkuhlu and Hervé Assah stepped down from the Board after completing their terms of office.

The shareholders commended the Group’s strong performance in 2023 financial year with its net revenues exceeding the $2 billion mark for the first time in nearly 10 years.

They also noted that this performance was achieved in the face of significant macroeconomic headwinds such as high inflationary and interest rate environment, local currency depreciation, and geopolitical tensions.

The Group achieved profit before tax of $581 million, up 8 per cent from $540 million in 2022. In constant currency (i.e. excluding the adverse effects of translating local currencies into ETI’s reporting currency the US dollar), the increase in profit before tax is 34 per cent. The Group recorded a record low cost-to-income ratio of 54.9 per cent.

Speaking to shareholders, the outgoing Chairman, Ecobank Group, Alain Nkontchou said: “2023 was an encouraging year for our Group. Our organisation has shown resilience in a rapidly changing operating environment. The Board is proud of what our employees around the continent and in our affiliates in other regions have achieved, collectively and individually.

He expressed that Group is mindful of the challenges ahead and hold unwavering confidence iin the capabilities of its management team and dedicated staff to meet and overcome them.

Commenting on the new Chairman, Nkontchou stated that, “the Chairperson will bring a fresh perspective and experience that will undoubtedly contribute to the continued success and growth of Ecobank, working alongside our Group CEO, Jeremy.”

The Chief Executive Officer, Ecobank Group, Jeremy Awori commented: “Ecobank delivered a strong performance in 2023, demonstrating the competitive advantages of our resilient, diversified business model and the early results of our new Growth, Transformation and Returns strategy.

“We demonstrated financial prudence by carefully managing our shareholders’ capital, ensuring customer satisfaction at every touchpoint, and making informed decisions about pricing our assets and liabilities. We are confident that our strategy is paving the way for our continued success and growth.”

“As a leading Pan-African bank, we are committed to making our business work for the 238 million Nigerians, their families, business interests and diaspora,” he said.

He noted further that the management would concentrate on productivity, branch optimisation, expanding agency network, and growing its consumer, commercial and payments businesses in Nigeria.

“Although Nigeria will receive particular attention, we are making significant advancement in our business verticals across the Group,” he added.

Immediately after the General Meetings, the Board of Directors appointed Papa Madiaw Ndiaye as the incoming Chairman of ETI.

He is taking over from Alain Nkontchou. Papa Ndiaye is the Chief Executive Officer and Founding Partner of AFIG Funds, a leading private equity fund management company focused on Africa. He has a proven track record of leadership and the creation of shareholder value and a deep commitment to Ecobank’s mission and strategic agenda.

ETI’s new Chairman, Papa Ndiaye  said: “I have long admired Ecobank Group’s successful development across Africa, and I am looking forward to working with Jeremy and ETI’s Board to steer the Bank through the next and exciting phase of its journey.

“With its strong foundation and numerous competitive advantages, I see Ecobank as strongly positioned to accelerate its growth trajectory and play an even greater role in driving the continent’s economic development in this era of rapid technological changes.”

Jeremy added that: “With his strong experience and knowledge, particularly in investing in financial services, Papa Ndiaye’s appointment as ETI’s Chairman is a significant step in reinforcing our position as the leading pan-African banking Group. We are excited about the future under his guidance and look forward to achieving our Growth, Transformation and Returns strategy, while enhancing our service delivery.”