Table of Contents
Key Points
- Ecobank launches custodian business in Nigeria, marking a significant expansion in Africa’s financial landscape.
- New entity, Ecobank Nominees Limited, to manage client assets separately, leveraging over $4 billion in asset management experience.
- The bank’s profit after tax surged 196% to $196 million in H1 2024, with a 5.02% revenue increase in Q1 2024.
Ecobank Transnational Incorporated (Ecobank), a leading pan-African banking group led by Cameroonian banker Alain Nkontchou, has officially launched its custodian business operations in Nigeria. This strategic move marks a significant expansion for the bank as it seeks to strengthen its presence across Africa’s financial landscape.
Following approvals from Nigeria’s Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN), Ecobank has established its custody services under the newly formed Ecobank Nominees Limited. The new entity will handle client assets separately from the bank’s own holdings, drawing on Ecobank’s extensive experience in managing over $4 billion in assets across Central, Francophone, and Anglophone West Africa.
Enhancing investment opportunities across Africa
Bolaji Lawal, Regional Executive of Ecobank Nigeria, highlighted the importance of the new custody services during the launch event in Lagos. “Our goal in Nigeria is clear—providing seamless, cost-effective, and immediate banking and investment solutions,” Lawal said. “This new custodian service is a testament to our commitment to enhancing our banking offerings.”
Identifying a market gap, Lawal noted that Ecobank aims to safeguard Nigerian investors’ assets while providing a gateway to diverse business opportunities across Africa through its extensive network. “We are enabling investors to leverage Ecobank’s robust infrastructure for new opportunities across the continent,” Lawal added.
Adebola Adedeji, Head of Custody and Managing Director of Ecobank Nominees Limited, confirmed that operations are underway with clients already being onboarded. The custody service is described as an all-inclusive, technology-driven solution, offering services such as settlements, fund administration, corporate actions processing, foreign exchange services, securities lending, and multi-market access through Ecobank affiliates.
Significant profit surge and employee settlement update
Ecobank, a leading regional bank in West and Central Africa, operates across 36 countries, making it one of the largest pan-African banking groups. Chairman Alain Nkontchou holds a 2.18 percent stake in the bank, equivalent to 400,916,488 shares, reflecting his commitment.
The bank’s profit after tax surged 196 percent to N311 billion ($196 million) for H1 2024, up from N105 billion ($66 million) last year. Ecobank also paid $679,000 to settle gratuities and savings for former Oceanic Bank employees. Revenue increased 5.02 percent year-on-year to N665.43 billion ($496 million) in Q1 2024, showcasing its financial strength.
