At a pivotal moment in its turnaround story, Ecobank Transnational has seen its outlook lifted from “negative” to “stable” by Moody’s Ratings.
The upgrade follows the group’s resilient financial performance, strengthened liquidity, and progress in recapitalising its Nigerian unit—just weeks after completing a $250 million capital raise.
The agency highlighted that ETI increased dividends from 22 subsidiaries in 2024—up from 14 in 2021—which helped it reduce its double leverage ratio to 168%.
Liquidity Boost And Capital Raising
Furthermore, ETI eased liquidity pressures by raising $525 million through two senior unsecured bond issues in October 2024 and May 2025.
The group plans to inject part of the proceeds into Ecobank Nigeria, which currently operates below the 10% regulatory capital adequacy minimum.
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In addition, the subsidiary is arranging a separate $200 million AT1 issuance.
Ecobank Transnational’s Upgrade
Meanwhile, Ecobank Nigeria has accelerated its transformation.
The bank repaid $150 million in bonds early and reclassified ₦170 billion in loans as performing.
It also recovered $6 million from a long-standing defaulter.
Supported by a 30% rise in gross earnings, the bank more than tripled its impairment provisions to ₦32.8 billion in H1 2025.
Across the group, problem loans increased to 6.6% from 5.4% in 2023, mainly due to delinquencies in Ghana and other Anglophone West African markets.
However, ETI maintained strong loan loss reserve coverage at 89%.
Finally, Moody’s acknowledged stabilising economic conditions in key markets.
As a result, ETI’s return on tangible assets rose to 1.7% in 2024—its highest since 2019.
