Bank’s pan-African model regains traction, posts profit - despite headwinds

Ecobank Transnational Incorporated has delivered a blockbuster financial performance for 2025, posting a profit of roughly $836m (Image source: © Financial Afrik Financial Afrik)

Its dual-engine growth model (interest and non-interest income) is increasingly critical in a volatile macroeconomic environment.

Across many African markets, banks are navigating inflationary pressures, currency fluctuations, and tighter liquidity conditions.

Its performance underscores a year of aggressive balance-sheet expansion and revenue growth, with the bank benefiting from higher interest income and a surge in non-interest earnings.

At the release of the results, Jeremy Awori, CEO of Ecobank Group, states, “We are pleased to report strong results for the nine months ending September 2025.

"Our return on tangible equity was 31.2%, tangible book value per share increased by 83%, and profit before tax rose 34% to $657m. Our cost-to-income ratio (CIR) improved from 54.5% in the same period last year to 48.0%."

He adds that these results demonstrate the ongoing success of its Growth, Transformation, and Returns (GTR) strategy, the advantages of our diversified and synergistic business model, and a steadily improving economic environment across its key markets.

"We are encouraged by our group-wide revenue growth of 18% (totalling $1.8bn), which has been the fastest in a decade, with each line of business performing well."

• In Corporate and Investment banking (CIB), revenues grew by 18%, supported by focused client account planning, strong origination and execution discipline, and better cross-selling and product offerings.

• In Consumer and Commercial Banking (CCB), revenues increased by 13%, driven by significant growth in active customers, deposits, and investments in various initiatives to serve our customers better.

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Investment in digital and mobile banking

"We invested in and improved our digital channels and mobile banking as well as in approximately 400 new state-of-the-art ATMs across our network, which would improve customer experience and help drive financial inclusion.

"We have also significantly enhanced our Ellevate program to support women entrepreneurs throughout Africa, renewed focus on the agricultural sector, and improved digital account opening, wealth management services, and lending," says Awori.

In the Payments, Fintech, and Cross-border Remittances business, revenues rose by 13% to $221m, accounting for 13% of its group-wide revenues, primarily driven by a 20% increase in Disbursement Services and a 14% increase in Cards.

He adds, "We are pleased about the significant progress we are making on our strategic priorities, transformative initiatives, and partnerships that will enable us to grow faster in the future and provide more efficient and better customer services."

Deposits and non-interest revenue

Customer deposits climbed significantly during the year, reflecting both increased customer confidence and the bank’s ability to attract low-cost funding across its pan-African network.

This surge in deposits has become a key driver of Ecobank’s earnings momentum, allowing it to expand lending while maintaining relatively stable funding costs.

The performance builds on earlier disclosures showing that Ecobank generated strong topline growth from interest income, which rose sharply due to higher yields on loans and investment securities.

At the same time, non-interest income (particularly fees, commissions, and foreign exchange gains) continued to provide a diversified revenue stream.

Cost pressures

However, the results were not without cost pressures.

Operating expenses rose during the year, driven largely by higher staff costs and broader inflationary impacts across its markets.

In addition, impairment charges on financial assets increased, reflecting a more cautious stance toward credit risk in uncertain economic conditions.

Nigeria: the biggest challenge

Nigeria remains the group’s most persistent challenge. In 2024, Ecobank Nigeria reported just $3m 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 m 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 manoeuvre.

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Pan-African model delivers

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% - Awori highlighted this metric alongside financial indicators in communications with investors.

Strategic shift

Ecobank’s balance sheet growth points to a deeper strategic shift.

With total assets expanding and deposits surging, the bank is positioning itself not just as a regional player, but as a dominant pan-African
financial platform capable of scaling across multiple markets simultaneously.

This strategy aligns with broader trends in African banking, where institutions are increasingly prioritising scale, digital banking capabilities, and diversified income streams to remain competitive.

Ecobank’s wide geographic footprint, spanning over 30 countries, gives it a unique advantage in capturing cross-border trade flows and regional financial integration.