Ecobank to pay $40 million dividend months after South Africa’s Nedbank exits $100 million stake

Ecobank Transnational Incorporated, the Lomé-headquartered parent of Ecobank Group, led by CEO Jeremy Awori, has proposed a $40 million dividend for the 2025 fiscal year, marking a renewed commitment to shareholder returns months after Nedbank Group exited its long-held stake in the lender.

The proposed payout, equivalent to $0.0016 per share and scheduled for June 30, 2026, highlights Ecobank’s strengthened earnings profile and capital position. It represents a notable rebound from its last dividend of $28 million in 2022, signaling improved financial resilience after years of muted distributions.

Ownership shift reshapes shareholder structure

The dividend follows Nedbank’s decision to divest its 21.2% stake in Ecobank for $100 million, bringing to a close a 17-year strategic partnership. The investment had long underperformed expectations, reflecting the complexities of operating across multiple African markets.

Over the years, Nedbank’s investment in Ecobank has struggled to deliver consistent returns, weighed down by the risks of operating in volatile economies. While Nedbank has recorded R6.8 billion ($378.6 million) in associate income from its stake, it has only received R4 million ($222,700) in dividends.

The stake was acquired by Cameroonian banker Alain Nkontchou through Bosquet Investments, elevating him to the lender’s largest shareholder with a 24.03% holding and reshaping Ecobank’s ownership dynamics.

Earnings growth underpins payout

Ecobank’s dividend declaration is supported by a strong financial performance in 2025. The group reported a profit of $594 million, driven by a 17% increase in net revenue to $2.45 billion, alongside improved efficiency and sustained growth across its corporate and investment banking and consumer and commercial banking divisions.

Momentum from its Growth, Transformation and Returns strategy continued to lift performance, with corporate and investment banking revenues rising 21%, while the consumer and commercial segment expanded by 14%.

Digital expansion accelerates growth

Digital channels played a pivotal role in the bank’s performance, with transaction value surging 30% to $133 billion and payment revenues climbing to $305 million, reflecting growing adoption of its digital banking platforms across Africa.

Operational discipline also strengthened margins, with the cost-to-income ratio improving to 48.3 % from 52.8% a year earlier. Customer deposits increased by $4.9 billion to $25.3 billion, while loans rose by $2.3 billion to $12.8 billion, supported by growth in trade finance, SME lending, and retail banking.

Strategic reset amid macro pressures

Despite macroeconomic headwinds in some markets, including a pre-tax loss in Nigeria, Ecobank maintained a solid capital base, with its capital adequacy ratio standing at 16.7%, well above regulatory requirements.

The dividend payout signals a turning point for Ecobank as it balances investor returns with long-term growth ambitions under a new shareholder structure led by Nkontchou, whose increased influence is expected to shape the bank’s strategic direction across its 34-country footprint.

Read Ecobank’s 2025 report here: