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 Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has proposed that financial institutions operating in the country should charge N150 for the e-dividend mandate processing fee from May 1, 2026.
This was contained in the latest Guide to Charges by Banks and Other Financial Institutions in Nigeria, signed by the Director of the Financial Policy and Regulation Department of the CBN, Ms Rita Sikе.
The move is to promote a safe and sound financial system in Nigeria, accelerate the adoption of innovative financial services, financial inclusion and micropayments/transactions.
The reviewed guide, according to the central bank, provides for an increased range of financial services, encourages development of innovative products, strengthens responsibility for oversight and accountability and promotes financial inclusion through lower tariffs for micropayments/transactions.
It also reviewed some charges for banking services to encourage increased adoption of electronic channels and accommodate new industry participants since the issuance of the 2020 guide.
“In view of the above, the draft guide is hereby exposed to members of the public for their comments/input on the proposed fees contained therein. Comments are to be sent to [email protected] on or before May 08, 2026,” a part of the note stated.
In the draft, the banking sector regulator is suggesting the payment of N1,500 for local debit card issuance and replacement by customers and a $10 annual fee for foreign currency-denominated debit/credit cards.
For on-site ATM transactions, a charge of N100 per N20,000 withdrawal was proposed and N100 plus a surcharge of not more than N500 per N20,000 withdrawal. It emphasised that the surcharge, which is an income of the ATM deployer/acquirer, shall be disclosed at the point of withdrawal to the consumer.
The bank also said that for electronic fund transfers below N5,000, no fee would be collected, but from N5,000 to N50,000, customers would part with N10, and for transfers above N50,000, the fee of N50 would be paid, while for microfinance banks, there would be the settlement bank’s charge plus 10 per cent of the charge.
The CBN noted that this guide applies to commercial banks, merchant banks, Payment Service Banks (PSBs), non-interest banks, microfinance banks, finance companies, Primary Mortgage Banks (PMBs), Development Finance Institutions (DFIs), credit guarantee companies, Mobile Money Operators (MMOs), and any other institution as may be designated by it.
In today’s rapidly evolving business environment, organisations face heightened competition, shifting workforce expectations, and increasing pressure to optimise productivity. Amid these dynamics, one truth has become increasingly clear: employees’ financial well-being is directly tied to organisational performance.
Employees who are financially secure demonstrate greater commitment, higher productivity, reduced absenteeism, and stronger alignment with company objectives. Conversely, financial stress has emerged as a leading contributor to disengagement, declining morale, and weakened performance across all levels of the workforce.
At Stanbic IBTC, we recognise this critical relationship between employee financial health and business outcomes. This insight led us to engineer Employee Value Banking (EVB)—a strategic, comprehensive, and future-proof solution designed to help organisations strengthen their workforce, elevate their value proposition, and drive long-term business sustainability.
EVB is a transformational partnership model aligning employee wellbeing with corporate productivity, risk reduction, and efficiency.
A Holistic, Employee-Centric Banking Architecture
EVB is built on the understanding that employees across varying grades and income brackets have unique financial realities. By offering a robust suite of banking, investment, insurance, and advisory services tailored to diverse needs, EVB empowers organisations to meaningfully enhance their workforce’s financial security and stability.
Key Components of the EVB Suite
- Digital Unsecured Personal Loans with Flexible Repayment
Employees gain access to seamless, digitally processed loans that allow them to meet immediate financial needs with ease.
Flexible repayment structures reduce financial strain while supporting responsible borrowing behaviour.
- Tailored Savings and Investment Solutions
Through structured savings plans, mutual funds, and diverse investment options, employees are empowered to build wealth over time.
This fosters discipline, long-term planning, and financial resilience.
- Pension and Asset Management Services
With Stanbic IBTC Pension Managers and Stanbic IBTC Asset Management, employees benefit from expert retirement guidance, wealth advisory, and long-term financial structuring—ensuring a secure and predictable future.
- Comprehensive Insurance Cover (Life, Health & Assets)
Employees and their families enjoy protection against major life risks, including health emergencies, life insurance, and property coverage.
This security enhances peace of mind and reduces workplace anxiety.
- Mortgage Support at a Competitive Single-Digit Rate of 9.75%
Homeownership remains a powerful symbol of stability and success.
Through EVB’s highly competitive mortgage solution, 774 families have successfully become homeowners from 2024 to date, demonstrating the program’s profound and measurable impact.
A Structured, Responsible, and Risk-Free Lending Model
One of the core strengths of EVB is its cadre-based lending framework, which aligns all loan offerings with employee grade levels, income bands, and organisational hierarchy. This ensures:
- Responsible and sustainable lending behaviours
- Protection against over-borrowing
- Stronger financial discipline
- Greater alignment with corporate HR structures
What distinctly sets EVB apart is its employer-focused risk mitigation. EVB’s structure ensures employers face no risk, making it uniquely designed for seamless adoption compared to standard banking programs.
All loans provided under the program are fully insured, meaning organisations carry:
- Zero liability
- Zero indemnity exposure
- Zero financial risk
This allows HR and management teams to expand their employee value proposition without adjusting internal financial structures or bearing additional costs.
Beyond Banking: Building a Financially Resilient Workforce
Financial empowerment is not achieved solely through products; it requires education, behavioural change, and consistent guidance.
Further differentiating EVB, Financial Fitness Workshops and complimentary Financial Health Checks are embedded as core components, giving employees ongoing support that competitors rarely offer.
These workshops cover:
- Personal budgeting and cash flow management
- Savings and investment strategies
- Smart debt management
- Retirement and pension planning
- Wealth creation principles
By equipping employees with financial knowledge, organisations reduce anxiety, enhance decision-making, and cultivate a more confident, resilient, and empowered workforce.
A Strategic Partnership That Delivers Sustained Organisational Value
EVB enables organisations to build a healthier, more motivated, and higher-performing workforce.
It is not a product—it is a strategic collaboration that enhances organisational culture, strengthens HR capability, and improves employer brand reputation.
Through EVB, organisations benefit from:
- Higher employee engagement
- Improved productivity and performance
- Reduced financial stress across all workforce levels
- Enhanced talent attraction and retention
- A stronger, richer reward and well-being structure
- A fully digital, modern, and efficient employee banking experience
EVB reflects Stanbic IBTC’s long-standing commitment to supporting organisations by empowering the individuals who drive their success.
Employee Value Banking (EVB) is a pivotal advancement in corporate banking. Where traditional bank–corporate relationships focused on organisational accounts and financial transactions, EVB introduces a holistic, human-centric model that puts employees’ well-being at the core of corporate financial services.
Through EVB, Stanbic IBTC has:
- Transitioned corporate banking from a transactional model to a value-driven partnership
- Expanded the definition of the corporate customer to include the entire workforce
- Integrated banking, pensions, investments, mortgages, insurance, and financial education into a unified ecosystem
- Elevated corporate banking into a strategic enabler of productivity, well-being, and business sustainability
- Positioned financial well-being as a competitive advantage for modern organisations
EVB has redefined the future of corporate banking, transforming it from a service function into a lever for organisational excellence, employee empowerment, and value creation.
Stanbic IBTC drives this change, enabling businesses to build secure, high-performing workforces.
By Modupe Gbadeyanka
The need for increased investment in the green economy and the adoption of frontier technologies as critical pathways to driving economic resilience and reducing the impact of climate change on vulnerable populations across Africa has again been stressed.
At a thought-provoking webinar hosted by Unity Bank Plc to commemorate this year’s Earth Day, themed The True Cost of Climate Change and Who Pays? leading climate innovation experts highlighted the disproportionate burden which climate change places on underserved communities and the need for inclusive solutions.
For example, the chief executive of Instollar, Ms Chinwe Udo-Davis, submitted that, “The true cost of climate change is not evenly distributed.”
“Communities with the least resources are often the most affected, whether through energy poverty, environmental degradation, or limited access to sustainable alternatives. Addressing this imbalance requires intentional investment in clean energy solutions that are both accessible and scalable,” she noted.
Also, the Programme Manager at the Nigeria Climate Innovation Centre, Oluwatosin Ajide, underscored the importance of coordinated, system-wide approaches in tackling climate challenges, particularly through innovation and policy alignment.
“Climate change is fundamentally a structural problem, and its solution requires a paradigm shift: from innovation and policy to financing and implementation. Stakeholders must work collaboratively to drive solutions that are sustainable and inclusive,” Ajide stated.
In his opening remarks, Unity Bank’s Head of Strategy and Innovation, Mr Ibukun Coker, emphasised the urgency of addressing climate risks from both a societal and business perspective.
“Climate change is no longer a distant or abstract challenge. It is an existential threat with direct consequences for individuals, businesses, and economies.
“At Unity Bank, we recognise the role institutions must play in incorporating sustainability in project financing, supporting businesses and promoting solutions that build resilience in communities where we operate,” he stated.
The programme provided an avenue for stakeholders to examine the human, economic, and institutional costs of climate change, while spotlighting practical solutions to address its growing impact.
It also explored emerging opportunities in climate technology, renewable energy, and ecosystem financing, reinforcing the role of innovation and cross-sector collaboration in building long-term resilience.
By hosting the webinar, Unity Bank continues to demonstrate its commitment to advancing sustainability-focused dialogue and supporting initiatives that promote responsible growth and environmental stewardship.
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