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 Central Bank of Nigeria (CBN) has rolled out fresh technology-driven rules compelling banks and other financial institutions to deploy automated anti-money laundering systems capable of detecting suspicious transactions in real time.
The directive, contained in a circular issued on March 10, 2026, applies to deposit money banks, mobile money operators, international money transfer operators, payment service providers, and other institutions under the apex bank’s supervision.
According to the regulator, the new framework sets minimum standards for automated anti-money laundering solutions designed to strengthen the detection and reporting of financial crimes within Nigeria’s rapidly digitising financial ecosystem.
In the circular, the CBN explained that the guidelines establish a baseline structure for financial institutions to deploy advanced monitoring tools capable of flagging suspicious financial activities instantly.
“The baseline standards provide a framework for implementing automated solutions that strengthen the detection and reporting of suspicious transactions in real time and enhance compliance with applicable AML/CFT/CPF laws and regulations, while also supporting the use of emerging technologies to improve overall financial crime risk management,” it stated.
The circular was jointly signed by the Director of Banking Supervision, Mrs Akinwunmi A. Olubukola, and Mrs Olubunmi Ayodele-Oni, acting for the Director of the Compliance Department.
Under the new policy, financial institutions must deploy automated anti-money laundering platforms that combine customer identification systems, transaction monitoring, sanctions screening, and risk assessment tools into a single integrated framework.
The CBN said the guidelines apply to all institutions operating within the financial system under its regulatory authority, including banks, payment companies, and other licensed financial service providers.
While the new rules take effect immediately, institutions have been given specific timelines to fully implement the required technology infrastructure.
Deposit money banks are expected to achieve full compliance within 18 months, while other financial institutions have 24 months to meet the regulatory requirements.
In addition, all institutions are required to submit detailed implementation roadmaps within three months of the issuance of the circular.
“The implementation of these guidelines shall start from the date of issuance, while full compliance shall be 18 months (for Deposit Money Banks) and 24-months (for Other Financial Institutions) from the date of issuance,” the apex bank added.
A major highlight of the framework is the emphasis on advanced technology tools such as artificial intelligence, machine learning, predictive analytics, and behavioural monitoring to identify unusual financial patterns that may indicate criminal activity.
Under the guidelines, institutions must deploy systems capable of conducting risk-based customer due diligence, monitoring transactions across multiple financial channels, and screening customers against sanctions databases and lists of politically exposed persons.
The CBN also directed that these automated systems must integrate seamlessly with core banking infrastructure and customer identity databases, enabling continuous real-time analysis of transaction flows and behavioural patterns.
According to the apex bank, traditional manual monitoring processes are increasingly inadequate in a financial environment that is becoming more complex and heavily driven by digital payments, fintech platforms, and mobile banking.
The regulator said automated surveillance systems would enable institutions to identify potential financial crimes earlier and report suspicious transactions promptly to authorities such as the CBN and the Nigerian Financial Intelligence Unit (NFIU).
The guidelines further require financial institutions to establish governance structures to oversee the performance of automated systems, validate artificial intelligence models, and ensure that data protection safeguards comply with Nigeria’s privacy regulations.
Beyond technology deployment, institutions must maintain detailed audit trails and case management systems that document investigations into suspicious financial activity and track regulatory reporting obligations.
The central bank warned that institutions that fail to comply with the new standards or operate ineffective anti-money laundering frameworks could face regulatory penalties.
Compliance will be monitored through a combination of off-site regulatory surveillance, on-site examinations, and targeted thematic reviews conducted by the banking regulator.
The CBN emphasised that the newly issued standards represent only the minimum compliance benchmark, adding that institutions may be required to implement stronger controls depending on their operational scale, transaction volumes, and risk exposure.
By Aduragbemi Omiyale
Union Bank of Nigeria is commemorating International Women’s Month 2026 with an initiative centred on women living with disabilities and women raising children with disabilities.
Throughout March, Union Bank will implement targeted initiatives to expand access, foster inclusion, and unlock sustainable opportunities.
Activities include a flagship event slated for The Stable, its multipurpose venue in Surulere, Lagos, on Saturday. The event convened women with disabilities, caregivers, supporting organisations, and advocates for dialogue, mentorship, and resource sharing.
Complementary efforts include outreach to disability support facilities and collaboration with educational institutions to distribute learning materials to female students with disabilities.
Tailored mentorship programmes will build confidence and capability in education, entrepreneurship, and careers.
Through its women’s banking proposition alpher and strategic partnerships, the bank will also deliver business sustainability training specifically designed for women living with disabilities and women raising children with disabilities.
Aligned with the global theme Give to Gain, the lender’s campaign Give to Gain: Creating Pathways for Inclusion and Endless Opportunities centres the lived experiences of women living with disabilities and underscores the need for intentional systems of support for social and economic advancement.
Internally, Union Bank will activate WeHub — its employee-led women’s network — to strengthen inclusive culture and support professional growth across the organisation.
“At Union Bank, inclusion is not an abstract ideal; it is a deliberate choice. While many conversations around women’s empowerment are important and necessary, women living with disabilities and women raising children with disabilities are too often left out entirely.
“This year’s theme, Give to Gain, reflects exactly what we believe: that when we intentionally open access, support, and opportunity to these women, the value created extends to families, communities, and society at large,” the Chief Brand and Marketing Officer for Union Bank, Ms Olufunmilola Aluko, stated.
By Modupe Gbadeyanka
A Federal High Court sitting in Ikoyi, Lagos, has ordered the final forfeiture of N81.1 million to the Federal Government of Nigeria in favour of Sterling Bank.
The money was part of the N2.5 billion stolen by some customers of Sterling Bank and transferred to their own use as well as to the use of some third-party beneficiaries, owing to a system glitch experienced by the bank.
On October 2, 2025, the court granted an interim forfeiture order of the fund and also directed the publication of the same in a national newspaper for any interested party to show cause why the money should not be finally forfeited to the federal government.
When no one came forward to claim the money, Justice Yelim Bogoro on Monday, March 9, 2026, ordered the final forfeiture of the funds.
The matter was brought before the court by the Economic and Financial Crimes Commission (EFCC) after a petition from the financial institution on July 18, 2022.
The anti-graft agency, in its investigations, traced the stolen funds to various accounts, including that of a customer, Sulaiman Kehinde Ojora, who was one of the major beneficiaries of the monumental fraud.
Investigation further revealed that Sulaiman Kehinde Ojora fraudulently concealed the sum of N43.0 million in the account of his friend, Taiwo Oluwaseyi Alawode (Account No. 1233126860), domiciled in Access Bank, and the sum of N122.2 million in the account of his wife, Aminat Olatanwa Ojora (Account No. 0072889319), domiciled in Sterling Bank.
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