Ecobank Transnational Incorporated closed the 2025 financial year with a strong earnings performance, underscoring the resilience of its pan-African banking model amid tighter financial conditions and rising credit risks across several of its core markets.
The lender reported a profit before tax of N1.27 trillion for the year ended 31 December 2025, a 30% increase from the N986.6 billion recorded in 2024. Profit after tax rose by 29% to N959.3 billion, reflecting broad-based revenue growth that more than offset higher impairment charges and operating costs.
The full-year performance contrasted with a softer fourth quarter. On a quarterly basis, pre-tax profit dipped slightly to N264.5 billion in Q4 2025 from N274.3 billion in the corresponding period of 2024, pointing to some late-year pressure from rising credit risk provisions and cost dynamics.
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Revenue momentum anchored on interest income and fees
Ecobank’s earnings expansion was anchored on strong growth in both interest and non-interest income, highlighting improved asset yields and deeper customer activity across its network.
Interest income rose 15% year on year to N3.1 trillion, benefiting from higher yields on loans and advances to customers, investment securities, and treasury bills. Net interest income climbed even faster, increasing 22% to N2.13 trillion, despite a moderate rise in interest expense. This suggests that repricing of assets outpaced funding cost pressures, a notable outcome in a year marked by elevated interest rates in several African markets.
Non-interest revenue also played a critical role. Total non-interest income increased 13% to N1.53 trillion, with fees and commission income rising 17% to N1.02 trillion. Cash management fees, card-related income, and credit-linked fees were key contributors, reflecting growing transaction volumes and the continued monetization of Ecobank’s digital and corporate banking platforms.
Trading and foreign exchange income added further support, benefiting from currency volatility across some of the group’s operating markets, although such gains are typically more cyclical in nature.
As a result, operating income expanded by 18% to N3.6 trillion, reinforcing the group’s revenue diversification beyond traditional lending.
Costs and credit risks rise, but margins hold
On the cost side, operating expenses increased by 8% to N1.77 trillion, driven largely by higher staff costs and other operating expenses. While cost growth lagged revenue expansion, the increase points to ongoing investment in people, technology, and regional operations.
More notable was the rise in impairment charges on financial assets, which climbed 28% to N613.2 billion. The increase reflects higher credit risk costs, likely linked to macroeconomic pressures, currency adjustments, and borrower stress in some markets.
Despite this, Ecobank’s operating profit after impairment charges still rose by 30% to N1.2 trillion, indicating that revenue growth and operating leverage were sufficient to absorb the higher provisions without derailing profitability.
Balance sheet growth and funding mix
Ecobank’s balance sheet expanded meaningfully over the year, with total assets rising 14.2% to N49.4 trillion from N43.3 trillion in 2024. Growth was driven by higher loans and advances to customers, increased holdings of investment securities, and stronger cash balances.
Cash balances stood at N8.57 trillion, up from N7.89 trillion a year earlier, enhancing liquidity buffers. At the same time, borrowed funds declined, suggesting some improvement in the group’s funding mix and a greater reliance on customer deposits and internally generated liquidity.
This balance sheet expansion reinforces Ecobank’s role as one of Africa’s largest financial institutions by geographic footprint, while also highlighting the scale of capital it is deploying across diverse markets.
Investors have responded positively to the 2025 performance. Shares of Ecobank Transnational Incorporated were trading at N51.90 on the Nigerian Exchange as of February 2026, up more than 8% month to date. Year-to-date gains stand above 23%, with trading volumes exceeding 19 million shares.
The rally reflects improved confidence in the bank’s earnings trajectory, balance sheet strength, and ability to navigate rising credit risks while sustaining growth.
While Ecobank’s 2025 results underline strong execution, the rise in impairment charges and the softer fourth-quarter performance suggest that asset quality and cost discipline will remain key watch points in 2026. Still, the combination of solid interest income growth, expanding fee-based revenues, and a broad pan-African franchise positions the group to continue delivering earnings growth, even as macroeconomic conditions remain uneven across the continent.