Nedbank Group Ltd., South Africa’s fourth-largest bank by assets, has announced its intention to sell its 21.2% stake in Ecobank Transnational Incorporated (BRVM:ETIT, GSE:ETI, NGX:ETI), ending a 17-year strategic partnership that had expanded its footprint across the African continent.
This exit marks a shift in strategic direction, with Nedbank refocusing on Southern and East Africa, where it aims to prioritize businesses it owns and controls directly. According to CEO Jason Quinn, the decision follows a year-long strategic review driven by regulatory uncertainties and the potential for increased capital requirements related to its stake in ETI.
At the same time, Nedbank reported a 6% rise in first-half earnings, reaching 8.4 billion rand ($469 million) by the end of June, supported by fee growth and a decline in credit losses. The bank’s credit loss ratio dropped to 81 basis points, falling within its target range of 60 to 100 basis points for the first time since 2023. An interim dividend of 10.28 rand per share was declared, exceeding market expectations.
Nedbank’s exit could pave the way for new strategic investors looking to strengthen Ecobank’s position, particularly in Francophone and Anglophone West Africa.
Meanwhile, Ecobank reported a pre-tax profit of NGN 352.92 billion in Q2 2025, up 46% year-on-year and 32% from the first quarter, reflecting strong momentum across its diverse markets. In July, Moody’s revised the bank’s outlook from “negative” to “stable” while affirming its long- and short-term ratings.
ETI operates in 38 countries, including 35 in Africa, and reported total assets of $28.9 billion as of March 31.
