• Ecobank posts $801 million in pre-tax profit for 2025, up 21%

• Cost discipline improves, with efficiency ratio falling below 50%

• Dividend returns, but Nigeria remains a key risk factor

Ecobank Transnational Incorporated delivered one of its strongest performances in years in 2025, posting $801 million in pre-tax profit, up 21% from a year earlier, alongside net revenue of $2.45 billion, a 17% increase. The results mark a high point since CEO Jeremy Awori took over in 2022 and offer early validation of the group’s long-criticized Growth, Transformation and Returns strategy.

The improvement is especially clear in operating efficiency. The cost-to-income ratio dropped to 48.3%, from 52.8% a year earlier and above 70% in the group’s more difficult years before 2018. For a bank operating across more than 33 markets with uneven macroeconomic conditions, the shift is significant: Ecobank now spends less than 49 cents to generate one dollar of revenue. It also marks a structural change, with revenue growth now outpacing expenses at the group level.

Performance was led by the Corporate and Investment Banking division, which posted $697 million in pre-tax profit, up 40%, driven by trade finance, cash management, and capital markets activity. The Consumer and Commercial Banking segment followed with $480 million, up 27%, supported by stronger deposit mobilization and a 33% increase in lending.

Customer deposits rose by $4.9 billion to reach $25.3 billion, while total loans stood at $12.8 billion. Return on tangible equity reached 27.8%, signaling a renewed capacity to generate value.

A cautious return to dividends

The board’s recommendation to pay $40 million in dividends, or $0.0016 per share, carries more symbolic weight than financial impact. Over the nine years leading up to 2022, Ecobank paid dividends only twice, the last time in 2016. From 2017 to 2021, shareholders saw no payouts as the group focused on repairing its balance sheet, transitioning to Basel III standards, and navigating the pandemic.

A first break came in 2022, with a $40 million payout for the 2021 financial year. The dividend was maintained for 2022, at $0.0011 per share, paid in June 2023, before being suspended again for 2023 and 2024. At the group’s annual meeting in Lomé in May 2025, Chairman Papa Madiaw Ndiaye described the decision as “difficult” and “disappointing,” citing the need to comply with debt covenants. Profits were retained, even as shareholders approved a $250 million capital increase.

The 2025 dividend marks a third resumption cycle in a decade, at the same level as in 2021. At under 7% of pre-tax profit, the payout remains modest. But it sends a signal to investors, especially given that Ecobank’s shares were trading at a steep discount—around 0.43 times book value at the end of 2024.

That signal has already been partly priced in. The stock reached CFA34 as of April 14, 2026, up 128.57% year-on-year and 39.13% since the start of the year, though it slipped 5.88% over the past week, suggesting that strong results were largely anticipated.

Nigeria: both drag and potential

Nigeria remains the group’s most persistent challenge. In 2024, Ecobank Nigeria reported just $3 million in net profit, down 87%, amid naira volatility, a 50% cash reserve requirement imposed by the central bank, and legacy exposure to the downstream oil sector. Yet the country still accounts for about 18% of the group’s total loan book.

The subsidiary’s cost-to-income ratio exceeded 79%, and it has not paid dividends to the parent company in five years. This stands in stark contrast to the WAEMU region alone, which generated $345 million in pre-tax profit over the same period.

These pressures explain Ecobank’s decision to raise its expected credit loss provisioning from 5.7% to 7.8% of gross loans in 2025. The group cited rising non-performing loans in Nigeria, linked to legacy exposures and the end of regulatory forbearance measures. The move weighs on short-term performance but reflects a broader effort to clean up the balance sheet ahead of future growth.

There are early signs of improvement. In the first half of 2025, the Nigerian subsidiary’s profit rose 45% year-on-year, supported by better foreign exchange liquidity and expanding digital operations. The group’s capital adequacy ratio stood at 16.7%, well above regulatory requirements, leaving room to maneuver.

A pan-African model regains traction

Elsewhere, Ecobank’s diversified footprint is starting to pay off. The Central, Eastern and Southern Africa region posted the fastest growth, while both Anglophone and Francophone West Africa benefited from lower funding costs and strong trade flows. Turnaround markets such as Kenya, Uganda, and Zambia reported improved efficiency ratios.

The group has also focused on customer experience, with satisfaction levels rising by 10 percentage points to 70%. CEO Jeremy Awori has highlighted this metric alongside financial indicators in communications with investors.

Still, structural challenges remain. Ecobank carries a negative retained earnings balance of $1.56 billion, reflecting past losses and currency shocks. Rebuilding the balance sheet will take time.

For now, the 2025 dividend marks a milestone: a bank emerging from a decade of turbulence and beginning, once again, to reward shareholders.

Fiacre E. Kakpo