No dividend for ETI shareholders as Board focuses on servicing debts, strengthening balance sheet

Ecobank Transnational Incorporated (ETI) shareholders will not receive dividends for 2024. This decision comes despite a record-breaking year and balanced growth across all business segments.

The announcement was made at ETI’s Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) in Lomé, Togo, on May 28, 2025.

Board Chairman Papa Madiaw Ndiaye called the decision “very difficult.” He acknowledged that dividends are important to shareholders.

“Of the 641,000 shareholders of ETI, about 600,000 own fewer than 10,000 units,” he noted. Many of these shareholders rely on dividend payments.

The Board emphasized that this decision was made for the company’s best interest. They wanted to strengthen the balance sheet for future growth.

Mr. Ndiaye explained they faced a tough choice: service debt or pay dividends. He recognized shareholder disappointment and stressed the importance of explaining their reasoning.

2024 Financial Performance

ETI delivered over $2 billion in revenue for the second consecutive year in 2024. Profit attributable to shareholders reached $333 million, a 45% increase at constant exchange rates. Profit Before Tax climbed to $658 million, up by 33% when adjusted for currency effects.

Return on equity hit a record 32.7%. Customer deposits totaled $20.4 billion, while total assets stood at $28 billion.

All core business segments reported strong growth:

- Corporate & Investment Banking generated $1.1 billion in revenue.
- Consumer Banking added over one million new customers with a 15% revenue increase.
- Commercial Banking grew by 12%, driven by improved lending and transaction banking.

Shareholder Support for Resolutions

Despite concerns from some retail investors about no dividend payments, shareholders approved all resolutions at the AGM.

These included:

- Approval of financial statements and profit appropriation for 2024.
- Appointment of an additional auditor.
- Re-election and renewal of mandates for several board members.
- Authorization to raise additional funds and amend company Articles of Association.

CEO Outlines Growth Strategy

Group Chief Executive Jeremy Awori reassured shareholders about ETI’s strategic direction. He pledged to expand customer access to current accounts and savings products.

Awori also promised faster money transfers and better financial planning tools like mortgages and wealth solutions.

“In 2024, we began reorienting the Bank toward these goals,” he said. He emphasized that long-term revenue growth is key for value creation and high returns on equity.

He described ETI’s first-quarter performance in 2025 as “encouraging.” The Bank saw rising return on equity and falling cost-to-income ratios due to digital investments. Awori reaffirmed their focus on strengthening the balance sheet for accelerated growth.