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Ecobank Shareholders Approve $600 Million Capital Increase
Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group held its 36th Annual General Meeting (AGM) in Lomé, Togo, on Thursday. During the meeting, Ecobank shareholders authorised the board of directors to raise within a period of one year from the date of the meeting up to $600million (over N840billion).
The bank’s board of directors also appointed Madiaw Ndiaye as the company’s new chairman. He succeeded Alain Nkontchou, who has completed this term in office.
Ecobank shareholders $600m capital raise
Ecobank shareholders $600m capital raise will be through senior-ranked debt, Tier 2-qualifying subordinated debt, or a combination of these forms of instruments, as the board of directors may seem appropriate. The Group achieved profit before tax (PBT) of $581 million, up 8 percent from $540 million in 2022. In constant currency (excluding the adverse effects of translating local currencies into ETI’s reporting currency, the US dollar), the increase in profit before tax is 34 percent. The Group recorded a record low cost-to-income ratio of 54.9 percent.
Ecobank Shareholders Applaud Group’s Performance in 2023
At the meeting, ETI shareholders applauded the Group’s strong performance in 2023. They highlighted that its net revenues exceeded the $2 billion mark for the first time in nearly 10 years.
Also Read: Updated List of All Ecobank USSD Codes for Banking Transactions
Chief Executive Officer, Jeremy Awori, said, “Ecobank delivered a strong performance in 2023. It demonstrates the competitive advantages of our resilient, diversified business model and the early results of our new Growth, Transformation and Returns strategy.
He further said, “We demonstrated financial prudence by carefully managing our shareholders’ capital. Consequently, ensuring customer satisfaction at every touch point, 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.”
Conclusion
This development highlights Ecobank’s strong financial performance and its plans for future growth. The approval of the capital raise and the appointment of a new chairman demonstrate the bank’s commitment to expanding its operations and increasing shareholder value. This development is significant for the banking industry and African economy as a whole.
