Ecobank Transnational Incorporated reported a record profit before tax (PBT) of $801 million for the financial year ended December 31, 2025, representing a 21 percent increase from $662 million recorded in 2024 as the lender leveraged revenue growth, cost discipline and diversification across its pan-African operations.
Profit attributable to shareholders rose by 22 percent to $407 million, while earnings per share increased by 23 percent to $0.017.
The board proposed a dividend payout of $40 million, up from $28 million in the previous distribution cycle, subject to shareholder approval.
The group’s net revenue climbed 17 percent year-on-year to $2.45 billion, driven by strong performance in Corporate and Investment Banking and Consumer and Commercial Banking.
Non-interest revenue accounted for 42.4 percent of total income, supported by increased transaction volumes, higher trading income and improved fee generation.
Cost efficiency improved with the cost-to-income ratio declining to a record 48.3 percent from 52.8 percent in 2024. Pre-provision operating profit rose 29 percent to $1.27 billion, suggesting stronger earnings capacity and disciplined expense management despite increased investment in staff and digital infrastructure.
Ecobank maintained strong profitability metrics, with return on tangible equity at 27.8 percent and return on assets at 1.9 percent.
The group’s capital position remained above regulatory thresholds with a Common Equity Tier 1 ratio of 13.2 percent and total capital adequacy ratio of 16.7 percent.
Balance sheet growth remained robust as gross loans expanded by 22 percent to $12.8 billion, while customer deposits rose 24 percent to $25.3 billion, supported by increased adoption of low-cost current and savings accounts.
The group’s liquidity profile remained stable, with a loan-to-deposit ratio of 50.5 percent.
Despite the strong financial performance, asset quality weakened during the period. The non-performing loan ratio increased to 9.4 percent from 6.7 percent, driven largely by exposures in Nigeria following the exit from the Central Bank of Nigeria’s regulatory forbearance framework.
Impairment charges on loans rose sharply, contributing to a 44 percent increase in total impairment expenses.
Nigeria remained a key pressure point for the group, recording a pre-tax loss of $31 million compared to a marginal profit in 2024.
The decline was driven by elevated credit losses within the corporate banking portfolio, particularly in the oil and gas sector, as the bank adopted a more conservative risk recognition approach.
In contrast, other regions delivered strong growth. The Central, Eastern and Southern Africa segment recorded the highest profitability with PBT rising 52 percent to $450 million, while Anglophone West Africa grew profit by 28 percent.
Francophone West Africa also posted steady expansion, reinforcing the benefits of geographic diversification.
Digital banking continued to play a central role in the group’s growth strategy. The value of digital transactions increased by 30 percent to $133 billion, while payment revenue rose 14 percent to $305 million, driven by increased activity across cards, transfers and wholesale payment channels.
The group also strengthened its customer acquisition strategy by expanding digital account offerings, deploying additional ATMs and increasing its direct sales workforce across multiple markets. These initiatives contributed to higher customer engagement and improved transaction volumes.
