Banking
Moody’s Assigns first-time B2 Issuer Rating to Ecobank
By Dipo Olowookere
Leading global rating company, Moody’s Investors Service (Moody’s) last week announced assigning first-time B2/Not Prime global local- and foreign-currency issuer ratings to Ecobank Transnational Incorporated (ETI), a Pan-African bank holding company incorporated in Togo.
According to Moody’s, the long-term ratings carry a stable outlook and as part of its analysis, the rating agency also assigned a notional baseline credit assessment (BCA) and adjusted BCA of b2 and b1, respectively, based on ETI’s consolidated financial statements.
Moody’s explained that ETI’s ratings reflect the group’s stable funding and liquidity profile, expansive geographic and business diversification, recovering profitability and Moody’s assessment of a moderate probability of affiliate support in case of need.
It noted that these strengths are balanced against the group’s high, but potentially moderating, asset risks and modest capital buffers, which are largely legacy issues that the bank’s new management is pro-actively addressing as part of a broader strategic plan. The new strategy also introduces digitalization and cost-cutting initiatives.
The rating agency disclosed that the stable outlook balances ETI’s stable funding profile, recovering profitability and business diversification against the group’s elevated, but potentially moderating, asset risks and modest capital buffers, which the rating agency expects will only slowly improve over the next 12-18 months in the context of continued challenges in the external environment of emerging markets.
ETI is a pan-African banking group, with banking subsidiaries in 33 African countries and total assets of $21.6 billion as of June 2018. As a bank holding company incorporated in Togo, which is part of the West African Economic and Monetary Union (WAEMU), it is regulated by the Central Bank of the West African States (BCEAO), the regional central bank.
According to Moody’s, ETI’s BCA of b2 reflects the group’s stable funding and liquidity profile, recovering profitability, diversification benefits and improving, but still challenging, macro-economic conditions in the African continent, balanced against the group’s elevated asset risks and modest capital buffers.
More specifically, it said the ratings reflect ETI’s deposit-based funding structure, with customer deposits accounting for 71 percent of total assets as of June 2018, and with limited reliance on riskier short-term market funding.
ETI’s deposits are granular and have historically proved stable, while the bank also has access to longer-duration market funding, which helps support its liquidity management and better match the duration of its assets and liabilities.
The group also maintains strong liquidity buffers, with cash and interbank balances representing 19 percent of total assets, while it can also count on an additional 28 percent of investment securities and government bonds, most of which can be repurchased through its subsidiaries’ respective central banks to source additional liquidity in case of need.
Moody’s also noted that as a Pan-African bank with banking subsidiaries in 33 African countries, ETI can substantially benefit from geographic and business diversification. The granular nature of ETI’s operations, combined with its entrenched African franchise helps diversify credit, operational and business risks.
In addition, the group’s broad diversification might act as a counterweight in times of stress by giving ETI a range of alternative sources of income and resources when other parts of the group may face challenges. Moody’s incorporates such benefits in the standalone BCA of the group.
Moody’s also noted that the group’s revised strategy makes it clear that management is committed to ensuring that all banking subsidiaries follow strict loan underwriting and risk management standards while reporting an adequate return on equity, with a clear understanding that a rationalisation of the group’s footprint may be needed where these goals cannot be achieved in a timely manner.
During 2017 and H1 2018, the group has already recorded a significant improvement in its earnings generating capacity, supported by the new management team’s focussed strategy and reorganisation initiatives that have led to cost cutting and lower provisioning requirements (2.6 percent of gross loans for H1 2018 compared to 7.8 percent in 2016). For H1 2018, the group reported bottom-line profits to ordinary shareholders of $135 million, up 28 percent year-on-year.
According to Moody’s, another credit factor behind the ratings assigned today is Africa’s economy and operating environment. Moody’s recognises that economic growth in Sub-Saharan Africa is accelerating, which will provide significant business opportunities for ETI, but also notes that the operating environment remains challenging. The rating agency uses a “Very Weak+” Macro Profile assessment for ETI, which is the weighted average of the Macro Profiles of the principal countries and regions in which the bank operates; more specifically: Cote d’Ivoire’s newly assigned “Weak-“; Nigeria’s “Very Weak+”; Ghana’s “Very Weak”; and Tanzania’s “Very Weak+”.
ETI’s ratings also reflect the group’s high asset risks, with the non-performing loans (NPLs)-to-gross loans ratio at 9.6 percent as of June 2018 and still high provisioning requirements (2.6 percent of gross loans for H1 2018).
Going forward, Moody’s said it does, however, expect a gradual reduction in NPL levels as economic growth accelerates and ETI strengthens its risk management capabilities and the new management’s on-going emphasis on improving its risk culture.
Similarly, Moody’s says considers the group’s capital buffers as modest, with the Moody’s-adjusted Basel II/III tangible common equity-to-risk-weighted assets ratio estimated at 5.6 percent as of December 2017, below the level reported by similarly-rated banks (of around 13 percent).
According to Moody’s, ETI’s major shareholders remain committed long-term investors, and Moody’s assesses that there is a moderate probability that they will support the institution with additional capital in case of stress. Moody’s therefore incorporates a one notch rating uplift due to affiliate support, placing ETI’s notional adjusted BCA at b1.
As a pan-African group with banking subsidiaries in 33 African countries, ETI remains an important institution for the African continent, and even more so for the WAEMU region, where it is incorporated and regulated by BCEAO, and where 40 percent of the group’s operations are situated. Although Moody’s does not impute any government support uplift, the rating agency assesses that in case of need the regulatory authorities will show flexibility and certain degree of forbearance that will allow enough time for management and shareholders to recapitalize the group.
ETI is a non-operational financial holding entity and its issuer rating is positioned one notch below its notional adjusted BCA of b1. This is because holding-company creditors are subordinated to creditors at banking subsidiaries in a bankruptcy or resolution context, and are thus likely to experience higher losses. This is also the case for ETI, which relies on the up-streaming of dividends from its investments to repay its own liabilities.
Moody’s said the stable outlook balances ETI’s relative strong funding and liquidity position, recovering profitability and business diversification benefits, against the group’s modest capital buffers and elevated — but potentially moderating — asset risks. Over the next 12 months, the rating agency expects that ETI’s NPL ratio will remain high despite a gradual reduction and lower NPL formation.
The rating agency said a rigorous implementation of management’s initiatives to strengthen the fundamental operations of the group and realise its full diversification potential, especially as measured by ETI’s non-performing loans and capital metrics, would lead to upward rating pressure.
By Adedapo Adesanya
The Senate has demanded detailed explanation from the Central Bank of Nigeria (CBN) over the alleged non-remittance of N1.44 trillion in operating surplus.
The Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Mr Tokunbo Abiru, opened its statutory briefing with a firm call for transparency at the apex bank, noting that the Auditor-General’s query on the unremitted funds required a full, clear and documented response, insisting that public trust in monetary governance depended on strict accountability.
While acknowledging the CBN’s achievements in stabilising the foreign exchange market and reducing inflation, Mr Abiru underscored that such progress must be accompanied by institutional responsibility.
He stated the Senate expected the CBN to explain the circumstances surrounding the query, outline corrective steps taken and reveal safeguards against future lapses.
This came as the Governor of the central bank, Mr Yemi Cardoso, appeared before the senate committee and offered an extensive review of economic conditions, asserting that Nigeria was experiencing renewed macroeconomic stability across major indicators.
Mr Cardoso attributed the progress to bold monetary reforms, foreign-exchange liberalisation and disciplined liquidity management implemented since mid-2025.
According to him, headline inflation had declined for seven consecutive months, from 34.6 per cent in November 2024 to 16.05 per cent in October 2025, marking the steepest and longest disinflation trend in over a decade.
Food inflation accruing to him also slowed to 13.12 per cent, supported by improved supply conditions and exchange-rate predictability.
The CBN governor described the foreign-exchange market as fundamentally transformed, adding that speculative attacks and arbitrage opportunities had largely disappeared.
According to him, the premium between the official and parallel markets had fallen to below two per cent, compared to over 60 per cent a year earlier. As of November 26, the naira traded at N1,442.92 per dollar at the Nigerian Foreign Exchange Market, stronger than the N1,551 average recorded in the first half of 2025.
He also announced a sharp rise in external reserves to $46.7 billion, the highest in nearly seven years and sufficient to cover over ten months of imports.
Diaspora remittances, he noted, had tripled to about $600 million monthly, while foreign capital inflows reached $20.98 billion in the first ten months of 2025, 70 per cent higher than in 2024 and more than four times the 2023 figure.
Cardoso further confirmed that the CBN had fully cleared the $7 billion verified FX backlog, restoring investor confidence and strengthening Nigeria’s balance-of-payments position.
On banking-sector stability, he reported that recapitalisation efforts were progressing smoothly. Twenty-seven banks had already raised new capital, with sixteen meeting or surpassing the new regulatory thresholds ahead of the March 31, 2026 deadline, highlighting improvements in ATM cash availability, digital-payments oversight and cybersecurity compliance.
Despite the positive indicators, the Senate sought clarity on several policy decisions.
Mr Abiru pressed for explanations on the sustained 45 per cent Cash Reserve Ratio (CRR), the 75 per cent CRR applied to non-Treasury Single Account public-sector deposits, FX forward settlements, mutilated naira notes in circulation, excessive bank charges, failed electronic transactions and the compliance of CBN subsidiaries with parliamentary oversight.
He also requested an update on the activities of the Financial Services Regulatory Coordinating Committee, arguing that stronger inter-agency cooperation was necessary to maintain public confidence.
The session later moved into a closed-door meeting.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn