Latest news with #ETI
IOL News
3 days ago
- Business
- IOL News
Nedbank sells R1. 8bn Ecobank stake to Bosquet Investments
Nedbank announced that it has reached an agreement to sell its 21.2% shareholding in Ecobank Transnational Incorporated (ETI) to Bosquet Investments for a purchase consideration of $100 million (R1.8 billion). Bosquet Investments is the private investment vehicle of Alain Nkontchou, the managing partner and co-founder of Enko Capital Management. This follows the bank's strategic review of the group's financial investment ETI, which as from June 30, 2025, was classified as non-current asset held for sale in terms of IFRS 5. Nedbank Group CEO Jason Quinn said the bank was pleased to have reached this milestone following the board's approval to dispose of the asset. He said, 'Nedbank's decision to sell its ETI investment follows a detailed evaluation of the strategic alignment, financial performance, and long-term value proposition of the investment and is consistent with Nedbank's ongoing efforts to optimise its capital allocation and focus on core growth areas. This marks the conclusion of a significant chapter in Nedbank's journey with ETI spanning many years. "We wish to express our gratitude for the professionalism and integrity with which the board of directors of ETI has consistently conducted its affairs, and for the constructive engagement that has underpinned our relationship. The ETI board's stewardship has played a pivotal role in navigating ETI through complex environments and in advancing its pan-African mandate.' Quinn said the sale represents a reset of Nedbank's strategy on the rest of the African continent with a clear focus on the SADC and East Africa regions in businesses Nedbank owns and controls, and areas where it can play to our strengths. The proposed disposal is subject to the receipt of the requisite regulatory approvals in the relevant jurisdictions only. There are no other conditions precedent. Bosquet Investments has provided appropriate security to evidence the funding for the purchase consideration. It is currently expected that the proposed disposal will be implemented in the fourth quarter of 2025.
IOL News
4 days ago
- Business
- IOL News
Nedbank sells 21% stake in Ecobank for R1. 8 billion
Nedbank has announced that it has "reached an agreement to sell its 21.2% shareholding in Ecobank Transnational Incorporated (ETI) to Bosquet Investments Limited Image: Karen Sandison / Independent Newspapers Nedbank has announced that it has "reached an agreement to sell its 21.2% shareholding in Ecobank Transnational Incorporated (ETI) to Bosquet Investments Limited (Bosquet Investments) for a purchase consideration of US$100 million (R1.8 billion)" . Enko Capital is an African-focused asset management group established in 2008. The group manages alternative and traditional investment funds across Africa and has assets under management of Bosquet Investments is the private investment vehicle of Alain Nkontchou, the Managing Partner and co-founder of Enko Capital Management LLP ('Enko Capital'). The bank confirmed the news in a statement to the media on Friday morning, saying the decision "follows the bank's strategic review of the group's financial investment ETI, which as from 30 June 2025, was classified as a non-current asset held for sale in terms of IFRS 5". Nedbank Group Chief Executive Jason Quinn said, "the bank was pleased to have reached this milestone following the board's approval to dispose of the asset". 'Nedbank's decision to sell its ETI investment follows a detailed evaluation of the strategic alignment, financial performance, and long-term value proposition of the investment and is consistent with Nedbank's ongoing efforts to optimise its capital allocation and focus on core growth areas. "This marks the conclusion of a significant chapter in Nedbank's journey with ETI spanning many years" Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Quinn added that Nedbank remains committed to its African growth strategy but will now concentrate its efforts in regions where it has operational control. The proposed disposal is subject only to the receipt of the requisite regulatory approvals in the relevant jurisdictions, with no other conditions precedent. The transaction is expected to be completed in the fourth quarter of 2025. 'The sale represents a reset of Nedbank's strategy on the rest of the African continent with a clear focus on the SADC and East Africa regions in businesses Nedbank Group owns and controls, and areas where we can play to our strengths.' IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
Indian Express
5 days ago
- Business
- Indian Express
Top 10 countries fostering effective energy transition in 2025: Where does India rank?
Top 10 countries leading in Energy Transition Index 2025: Global progress towards secure, equitable, and sustainable energy systems has accelerated significantly, reversing years of slow advancement, according to the World Economic Forum (WEF). In 2025, 65 per cent of countries improved their Energy Transition Index (ETI) scores, with 28 per cent advancing across all three core dimensions: security, sustainability, and equity. Advanced economies continue to lead, occupying 16 of the top 20 spots in the ETI rankings. Sweden, Finland, Denmark, Norway, and Switzerland topped the list, excelling in energy diversification, clean energy adoption, robust policies, and reliable infrastructure. Notably, Latvia entered the ETI top 10 for the first time in 2025. Emerging Europe and Asia also made significant strides, driven by targeted reforms, enhanced infrastructure, and increased clean energy investments. Source: World Economic Forum: Fostering Effective Energy Transition 2025 Methodology: The World Economic Forum (WEF) collaborated with Accenture to benchmark the performance of 118 countries' energy systems across three dimensions (security, sustainability, and equity) and five readiness factors (political commitment, finance, innovation, infrastructure, and education/human capital). Among the largest economies, China has achieved its best-ever position at 12th, driven by strong innovation and the highest clean energy acquisition volumes in the world. The US ranks 17th due to its solid security measures and improvements in sustainability. However, it has slipped down to its previous year's position – 63rd in the 2024 Global Energy Transition Index but made notable strides in reducing CH4 emissions and boosting energy efficiency and clean energy investment capability this year. To boost its ranking, it can improvement in grid reliability, rural energy access, and reduced reliance on imported energy could boost energy security and equity. Investment in infrastructure and renewable sources could also speed up this transition.
Reuters
11-08-2025
- Business
- Reuters
Pan-African lender Ecobank optimistic about second half, CEO says
NAIROBI, Aug 11 (Reuters) - Pan-African lender Ecobank ( opens new tab is "optimistic" about the prospects for its second half performance, its chief executive said, as long as there are no further U.S. tariffs or other global shocks. The Lome, Togo-headquartered lender, which operates in 35 countries around the continent, posted a 23% growth in pretax profit for the first six months of this year thanks to recoveries in some of its key markets like Ghana. "We are confident that we will see the business continuing to perform. We have got a diversified business," Jeremy Awori, the group CEO, told Reuters in an interview. Growth in the business is also being driven by payment services, remittances, trade finances and other non-lending income lines. "Our lending is picking up. We are doing that cautiously because there are still many macroeconomic uncertainties and we don't want to lurch back into NPLs (non-performing loans)," Awori, who spoke to Reuters on Friday, said. Ecobank's shares, which collapsed during the global financial crisis, are up by almost a third this year. That's more than double other regional lenders such as KCB Bank ( opens new tab and Access Bank ( opens new tab and well above the 6% rise in Standard Bank. (SBKJ.J), opens new tab. Last week though, Ecobank's biggest shareholder, South Africa's Nedbank (NEDJ.J), opens new tab, put its 21.2% stake in bank up for sale, in part due to concerns it may have had to inject more capital in order to prevent "shareholding dilution". As one of Africa's biggest lenders, Ecobank's cash distribution business has been impacted by U.S. President Donald Trump's move to dismantle the United States Agency for International Development (USAID), Awori said. Ecobank has also been handling funds for the World Health Organisation, a United Nations agency that has also been affected by the USAID cuts. He did not provide data but Awori said the impact was distributed across its many markets, meaning the hit on deposits was not pronounced. He is also monitoring broader international developments too, especially the scale of U.S. trade tariffs. "A decision taken by the U.S. against China or against Europe can have a knock-on effect across into our markets," Awori said. "We are very joined up." Although an opening-up Ethiopia could be an exception given its size and potential, Ecobank doesn't have any near-term geographical expansion plans. "It is never say never, but right now, for the next couple of years, we feel we have enough opportunities where we are," Awori said.
Yahoo
06-08-2025
- Business
- Yahoo
Nedbank Group Ltd (NDBKF) (H1 2025) Earnings Call Highlights: Navigating Growth Amidst Economic ...
Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Nedbank Group Ltd (NDBKF) reported a 7% increase in diluted headline earnings per share (HEPS), slightly ahead of their first-half guidance. The company's return on equity improved to 15.2%, supported by a 6% growth in headline earnings. Nedbank Group Ltd (NDBKF) completed its organizational restructure on time, which is expected to enhance client focus and drive revenue growth. The company gained market share in retail and commercial deposits, home loans, and vehicle finance. Digital transaction values increased significantly, with branch sales and digital transaction values rising by 11% and 16% year on year, respectively. Negative Points The operating environment was challenging, with South African GDP growth at only 0.1% in Q1 2025, impacting the banking sector. Nedbank Group Ltd (NDBKF) experienced a decline in unsecured lending market share and pressures on margins due to lower interest rates. The company's cost-to-income ratio increased to 57.4% due to slow revenue growth. Nedbank Group Ltd (NDBKF) faced challenges with its investment in ETI, leading to a reclassification as a non-current asset held for sale. The company's net interest margin declined by 26 basis points, primarily due to negative endowment impacts and asset mix changes. Q & A Highlights Warning! GuruFocus has detected 1 Warning Sign with NDBKF. Q: Can you provide more details on your target for a 17% ROE and what needs to happen in 2026 to achieve this? Also, could you elaborate on the elevated credit loss ratios in retail, MFC, and unsecured lending? A: The target for a 17% ROE is set for three years out. To achieve this, we need higher earnings growth in 2026 compared to 2025, better revenue momentum, more balance sheet growth, stabilization of loan loss rates, and improved efficiency in expenses. Regarding credit loss ratios, we are comfortable with the overall loan loss rate at 81 basis points, but there are opportunities for improvement in motor finance, personal loans, and cards, which we aim to address in the second half. Q: Regarding the ETI accounting change, were there any impacts on the P&L other than the 1 billion impairment? Also, what is the margin outlook for next year given the rate cuts? A: The ETI accounting change resulted in an additional 281 million rand of post-tax earnings being included in this set of numbers. From a balance sheet perspective, we booked our share of OCI foreign currency translation movements through equity. Regarding margins, we expect further dilution due to endowment impacts from rate cuts and a mix shift towards lower-margin assets. This trend may continue into 2026. Q: Upon completion of the sale of ETI, how likely is it that Nedbank will be able to repatriate the proceeds to South Africa? A: We aim for a clean sale of ETI without material suspensive conditions, allowing unrestricted access to hard currency. This would enable us to apply the proceeds to our capital stack as needed. Q: How does the group plan to maintain and improve ROE post-ETI sale, and is the current dividend policy appropriate? A: Post-ETI sale, we will focus on growing profitable businesses, improving risk-adjusted margins, and enhancing NIR through efficiency and lower cost-income ratios. The current dividend policy remains appropriate, with payouts at the top end of the range, subject to board approval. Q: What are the expectations for non-interest revenue and operating expenses in 2025 and 2026? A: For 2025, we expect non-interest revenue to grow above mid-single digits and operating expenses to grow between mid and upper single digits. In 2026, we aim for mid to upper single-digit growth in non-interest revenue and slightly above mid-single-digit growth in expenses, alongside stronger balance sheet growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
