Ecobank shareholders approve 256% dividend surge as profits hit GH¢3.03bn

Ecobank Ghana PLC shareholders have approved a dividend of GH¢1.21 per share for the 2025 financial year, marking a 256.8 percent increase from GH¢0.34 in 2024 as the bank returned stronger earnings at its Annual General Meeting (AGM).

The payout, which totals GH¢390.3million, represents a firmer return to represent distributions after several years of constrained dividends in the Domestic Debt Exchange Programme’s  aftermath and subsequent sector-wide balance sheet adjustments.

This comes as the financial services provider delivered a stronger underlying performance, with pre-tax profit rising 28.3 percent to GH¢3.03billion. Earnings per share increased to GH¢5.65 from GH¢5.27 and the bank consolidated its position as second-largest lender in Ghana by both revenue and pre-tax profit.

Revenue was broadly flat at GH¢5.21billion, but the composition of earnings shifted markedly. Net interest income fell 28.8 percent to GH¢2.68billion, reflecting the impact of a rapid monetary easing cycle as 91-day Treasury bill rates declined from above 27 percent to around 11 percent – compressing yields across the banking sector.

Non-interest income absorbed the pressure, rising to 49 percent of total revenue from 30 percent a year earlier. This was driven by a 58.2 percent increase in net trading income to GH¢1.7billion and a 43.2 percent rise of net fee and commission income to GH¢531.7million.

Credit quality improvements also provided a major boost to profitability. Impairment charges fell 65.4 percent to GH¢356.7million from GH¢1.03billion in 2024, reflecting improving macroeconomic stability and better asset performance across key portfolios.

Total assets increased 2.9 percent to GH¢47.33billion, while the loan book expanded 24 percent to GH¢13.15billion. Shareholders’ equity rose 32.9 percent to GH¢7.18billion and the Capital Adequacy Ratio stood at 21.23 percent, well above the regulatory minimum of 13 percent.

Segment performance

Corporate and Investment Banking delivered the strongest growth, with pre-tax profit rising 45 percent to GH¢1.6billion. The division was supported by a 98 percent surge in non-funded income, which offset a 50 percent contraction in net interest income. Loans grew 19 percent to GH¢7.4billion, while investment banking revenue jumped from GH¢5million to GH¢53million on account of a shift toward fee-based, capital-light transactions.

Commercial Banking recorded a 10 percent rise in pre-tax profit despite a 3 percent decline in revenue to GH¢1billion, as tighter cost control and improved asset quality cushioned the impact of lower interest margins. Lending in the segment expanded 20.8 percent year-on-year.

Consumer Banking accounted for 34 percent of total revenue and 44 percent of deposits. Revenue declined 5 percent to GH¢1.7billion, but pre-tax profit rose 8 percent to GH¢964million, supported by a 52 percent reduction in default-related losses and a 19 percent cut in operating expenses. The Xpressloan digital platform disbursed GH¢5.43billion across 8.49 million loans to 7.31 million customers during the year.

ESG and governance

On sustainability, Ecobank expanded its Accelerated Solar Action Programme under Green Climate Fund accreditation, the first by a commercial bank in sub-Saharan Africa. The bank disbursed US$1million in its first year and built a pipeline of about US$3.8million in climate-related financing.

Total CSR spending rose 84 percent to GH¢4.57million, anchored by digital learning initiatives for deaf and blind students across Accra, Takoradi, Kumasi and Wa.

Board Chairman Alhassan Andani, who assumed office in March 2026, said the results reflected “disciplined governance, prudent risk management and a culture of compliance” as foundations for sustainable performance.

He highlighted ongoing efforts to diversify revenue streams and deepen technology-led transformation.

Managing Director Abena Osei-Poku acknowledged lingering asset-quality pressures, noting that the non-performing loan ratio of 17.92 percent remained elevated – but said the bank is targetting a reduction to below 10 percent by December 2026 through “urgency and discipline.”

“The year 2025 tested us, but also reaffirmed our resilience, discipline and capacity to adapt. With this foundation and with clarity of purpose, I am confident that our best days are ahead of us.”

Shares of Ecobank Ghana PLC are trading at GH¢41 on the Ghana Stock Exchange, up 64 percent year-to-date and 70.7 percent over six months, while posting a 439 percent gain over the past year – well ahead of the GSE Composite Index’s 79.4 percent return in 2025.

The post Ecobank shareholders approve 256% dividend surge as profits hit GH¢3.03bn appeared first on The Business & Financial Times.

Read Full Story