Ecobank Group Opts Against Paying Dividends Despite Record Results

BREAKING NEWSMay 30, 2025 at 9:51 AM UTC

TLDR

Ecobank Transnational Incorporated (ETI) reported record financial results for 2024, with a pre-tax profit of $658 million, up 13% year-on-year
Net profit attributable to shareholders reached $333 million, up 16%, and return on tangible equity hit a record 32.7%
Despite these gains, the board again chose not to distribute dividends, sparking shareholder frustration during the group’s 37th Ordinary General Meeting in Lomé

Ecobank Transnational Incorporated (BRVM: ETIT) reported record financial results for 2024, with a pre-tax profit of $658 million, up 13% year-on-year and 33% at constant exchange rates. Net profit attributable to shareholders reached $333 million, up 16%, and return on tangible equity hit a record 32.7%. Despite these gains, the board again chose not to distribute dividends, sparking shareholder frustration during the group’s 37th Ordinary General Meeting in Lomé.

The group’s customer base grew by 1 million, reaching 33 million across 33 countries. Total assets stood at $28 billion, and customer deposits totaled $20.4 billion. CEO Jeremy Awori credited the performance to the GTR (Growth, Transformation, Returns) strategy launched in 2023, which focuses on business expansion, digital transformation, and operational efficiency. Corporate, retail, and commercial banking segments all posted double-digit growth.

Governance was further strengthened with new board appointments, a $250 million fundraising approval, and revised bylaws. Over $550 million has been raised in sustainable financing, with $265 million channeled to women-led businesses.

Still, the absence of dividends has led to growing dissatisfaction. The board cited balance sheet resilience and loan covenant compliance as reasons. With strong fundamentals in place, management now faces the challenge of balancing growth ambitions with shareholder returns.

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Key Takeaways

Ecobank’s performance in 2024 positions it as a strong, integrated player in African banking, but the second consecutive year without dividends has strained investor relations. Management insists that the focus on balance sheet strength is key to long-term stability and sustainable dividend policies. Yet, with inflation, currency depreciation, and policy tightening across sub-Saharan markets, many shareholders are increasingly demanding near-term returns. Chairman Papa Madiaw Ndiaye emphasized that reducing debt and protecting the group’s liquidity remain critical to avoid breaching restrictive loan covenants. However, shareholders present at the meeting expressed concern over delayed financial rewards, despite a visibly profitable year. As the group enters its next fiscal cycle, the core management dilemma will be finding a viable middle ground—delivering strategic transformation and financial growth while maintaining investor confidence. Ecobank’s leadership has set a foundation through operational improvements and regional growth, but future credibility may depend on whether these gains soon translate into tangible investor returns.

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