Ecobank Ghana PLC shareholders have approved a dividend of GHS 1.21 per share for the 2025 financial year. This represents a 256.8 percent increase from the GHS 0.34 per share paid in 2024. The total payout to shareholders will be GHS 390.3 million, reflecting stronger earnings.
This substantial dividend increase comes as Ecobank Ghana reported a pre-tax profit of GHS 3.03 billion, a 28.3 percent rise. The bank's earnings per share also increased to GHS 5.65 from GHS 5.27. This firmer return to shareholders follows several years of constrained dividends due to the Domestic Debt Exchange Programme and subsequent adjustments across the banking sector.
The improved performance positions Ecobank Ghana as the second-largest lender in Ghana by both revenue and pre-tax profit. This dividend surge underscores a significant recovery and strengthened financial health in Ghana's banking sector. It suggests a more stable economic environment after recent financial challenges, impacting investor confidence and market dynamics.
Ecobank Ghana’s Board Chairman, Alhassan Andani, stated that the results reflect “disciplined governance, prudent risk management and a culture of compliance.” He emphasized these factors as foundations for sustainable performance. The bank continues efforts to diversify revenue streams and deepen its technology-led transformation.
The bank's total revenue remained broadly flat at GHS 5.21 billion, but the composition of earnings changed. Net interest income fell 28.8 percent to GHS 2.68 billion. This decline reflects a rapid monetary easing cycle, which saw 91-day Treasury bill rates drop from over 27 percent to around 11 percent. These lower rates compressed yields across the banking sector.
Non-interest income absorbed this pressure, rising to 49 percent of total revenue from 30 percent a year earlier. This boost was due to a 58.2 percent increase in net trading income to GHS 1.7 billion. Net fee and commission income also rose 43.2 percent to GHS 531.7 million, contributing to the bank’s resilience.
Credit quality improvements also significantly boosted profitability. Impairment charges fell 65.4 percent to GHS 356.7 million from GHS 1.03 billion in 2024. This reduction reflects improving macroeconomic stability and better asset performance across key portfolios. The bank’s total assets increased 2.9 percent to GHS 47.33 billion, and its loan book expanded 24 percent to GHS 13.15 billion. Shareholders’ equity rose 32.9 percent to GHS 7.18 billion.
The Capital Adequacy Ratio, a measure of a bank's financial strength, stood at 21.23 percent. This is well above the regulatory minimum of 13 percent, indicating strong financial health. Corporate and Investment Banking delivered the strongest growth, with pre-tax profit rising 45 percent to GHS 1.6 billion.
Managing Director Abena Osei-Poku acknowledged that the non-performing loan ratio of 17.92 percent remains elevated. However, she indicated the bank is targeting a reduction to below 10 percent by December 2026. This will be achieved through “urgency and discipline” in managing loan recoveries.
The market has reacted positively to Ecobank Ghana's performance. Shares of Ecobank Ghana PLC are trading at GHS 41 on the Ghana Stock Exchange. This marks a 64 percent increase year-to-date and a 70.7 percent rise over six months. This strong stock performance reflects investor confidence in the bank’s future prospects and financial stability.
The strong dividend payout and profit growth suggest a positive outlook for Ecobank Ghana and potentially the wider Ghanaian banking sector. Investors will watch for continued improvements in asset quality and diversified revenue streams. These factors will likely influence future dividend policies and market valuations. The bank's focus on technology-led transformation and sustainability initiatives will also play a crucial role in its long-term growth.