South African Banker Jason Quinn-led Nedbank To Offload Ecobank Shares Worth Over 100 Million

Nedbank to exit Ecobank with 105.8 million stake sale, ending a 17-year alliance to refocus on Southern and East African markets.

CEO Jason Quinn sharpens Nedbanks regional growth strategy as West African risks, Nigeria exposure, weaken returns.

Despite 6 profit rise, Nedbank stock drops 5 after Ecobank divestiture 662 million committed to Africa expansion.

Nedbank, a renowned financial services group led by South African banker and business executive Jason Quinn, is divesting its 21.2 percent stake in Ecobank Transnational Inc. as it sharpens its geographic focus on Southern and East Africa. The move marks the end of a 17-year strategic alliance with the Togo-based pan-African lender.

The South African bank confirmed that the stakeclassified under IFRS 5 as a non-current asset held for salehas a market value of R1.9 billion 105.8 million. The decision follows a strategic review by Nedbanks board and management amid underwhelming returns and macroeconomic pressures in West Africa.

Ecobanks significant presence in volatile markets such as Nigeria has weighed on cross-border synergies and returns. Nedbank noted that several South African clients have exited the Nigerian market, eroding the collaborative advantages initially expected from the partnership.

Regulatory uncertainty and potential capital requirement increases make continued exposure unattractive, said Quinn. If a sale is concluded, it will be a clean exit.xA0 Despite reporting associate income of R6.8 billion 378.6 million over the years, Nedbank has only realized R4 million 222,700 in dividends from the stake. The bank is currently in talks with interested buyers to finalize the divestiture.

Since taking the helm in May 2024, Quinn has overseen a renewed regional growth strategy focused on Southern and East Africa, with subsidiaries in Zimbabwe, Namibia, Mozambique, Eswatini, Lesotho, and Malawi, and a strategic presence in Angola and Kenya.