ETI pays $40 million dividend after five years of non-payment
Following an improvement in its ‘Roadmap to Leadership’ strategy adopted in 2016, Ecobank Transnational Incorporation (ETI), the parent company of the Ecobank Group yesterday, paid out a total dividend of $40 million to shareholders after over five years of non-dividend payment.
At the company’s 34th yearly general meeting held in Abidjan, Cote d’ivoire, the Group Managing Director, Ade Ayeyemi said adoption of the strategy has helped the bank to clarify portfolios across businesses and maximise value of portfolios, which culminated to a cash dividend of 0.16 US cents ($0.0016) per share to shareholders.
Besides, shareholders applauded the Group’s impressively strong performance in 2021, which was achieved despite the challenging environment.
According to Ayeyemi, the Group’s profit for the year was $357 million compared to $88 million in 2020, although the latter was adversely affected by a goodwill impairment charge of $164 million, while net revenues increased by 4.6 per cent to $1,757 million.
He said the bank made meaningful progress across business segments, noting that its gross trade loans increased by 39 per cent to $2.9 billion, driven mainly by commodity financing.
“We transitioned to our ‘Executive Momentum ‘ strategy while continuing to harvest the expected results from our previous strategy. We have become more efficient, addressed legacy loan problem, strengthened capital and digitised our operations for the future.”
Ayeyemi assured shareholders that the bank would continue to defend its competitive position, explore opportunities for growth, revisit operational strategy in high potential markets and consider constructive exit from low potential markets.
He added that the bank’s first quarter results for 2022 provided a clear confirmation of Ecobank Group’s strong and sustained performance trajectory reinforcing the bank’s reliability and capacity to successfully deliver on its Africa-focused purpose and support for the continent’s economies, regardless of the prevailing challenges. “We are steadfast in our determination to win for all our stakeholders,” he noted
To consolidate on the performance, the Chairman Ecobank Group, Alain Nkontchou said the bank has rolled out innovative new technology, including the virtualization of its regional processing centers and the automation of digital MY-HR information system which automates HR processes with enhanced self service features.
According to him, these programmes are maximising operational efficiency and transforming its businesses for sustainable long-term growth.
“2021 was a transformational year for the Group and the Board is pleased to be rewarding shareholders with a dividend for the first time since 2016. Our results show that we are maximising operational efficiencies and successfully transforming our business for sustainable long-term growth.
“As we continue to deliver on our strategic imperatives, we are firmly positioned as the ideal partner for households and businesses to grow and succeed, and to foster Africa’s economic development, while continuing to grow our revenues and value”, he added.