During the EGM, shareholders voted to approve all ordinary and extraordinary resolutions presented: the approval of the 2024 accounts, the transfer of total annual profits to retained earnings, and the renewal of mandates of Mrs. Aichatou Agne Pouye and Dr. Aasim Qureshi.
Shareholders also approved the appointment of Ms. Esther Chibesa as a new director, the appointment of an additional auditor, the fund raising of up to US250 million, and a modification of the Articles of Association on the requirement of mandatory public offer to acquire shares.
The endorsement came on the back of Ecobank's record profits and strong earnings and returns in 2024 which saw the group achieve profit before tax of US658 million, up 13 per cent from US581 million in 2023. The increase in profit before tax was an even more impressive 33 per cent in Constant Currency - which excludes the adverse effects of translating local currencies into ETI's reporting currency, the US dollar. The Group also recorded a record return on tangible equity of 32.7 per cent up from 24.9 per cent in 2023 and its lowest ever cost-to-income ratio of 53.0 per cent which dropped from 53.9 per cent. This performance was delivered despite a challenging economic environment characterised by high inflation, rising interest rates, currency depreciation in many sub-Saharan African markets, and tightening regulation in Ghana, Nigeria and Zimbabwe.
Despite the positive performance, the Board of Directors made a difficult decision not to pay dividends this year in order to focus on strengthening the balance sheet and protecting the bank from any headwinds the Group may experience in the external environment while paving the way for accelerated growth.
Commenting on this decision, Papa Madiaw Ndiaye, Group Chairman ETI explained: "We acknowledge that not paying dividends again is disappointing and that explaining our reasoning is crucial. As we continue to deliver against the GTR strategy, we needed to choose between complying with existing debt covenants or paying dividends. We believe that reducing the debt burden is in the best interest of the company over the longer term and will serve our shareholders best as we build a resilient bank equipped to grow sustainably, deliver strong returns and add value for decades to come. Since I became Chairman last June, I have seen first-hand how our strong Board and leadership have worked together to drive the performance of this world-class pan-African institution. I pay tribute to the 14,000 Ecobankers whose hard work, dedication and intense focus on our customers are fundamental to the Bank's success."