Latest news with #JasonQuinn
Zawya
2 days ago
- Business
- Zawya
Nedbank's Ecobank split triggers strategic realignment in Africa
The Nedbank Group has announced that it is ending its alliance with Ecobank Transnational Incorporated. The decision to end the 17-year alliance follows a strategic review by the Group, which revealed a shift in Nedbank's continental strategy. This shift was driven by growing regulatory uncertainty across Africa and the prospect of increased capital requirements. As a result, the Group is looking to focus on growth on the Southern African Development Community (SADC) and East Africa—regions where it can operate businesses it owns and controls. The Group is actively seeking buyers for its 21.2% stake in the pan-African bank. Nedbank chief executive officer Jason Quinn announced that the stake was reclassified as a 'non-current asset held for sale' from 30 June 2025. He confirmed that a formal plan has been approved by the board, and the bank is now engaging with interested parties. ETI, based in Lomé, Togo, operates in over 30 African countries. Earnings outlook downgraded Despite this strategic repositioning, Nedbank's share price dropped 4.92% to R236.40 following the release of its interim results. The bank revised its full-year earnings outlook downward, citing South Africa's challenging economic environment and the impact of the ETI exit. Return on equity (ROE) is now forecast at around 15%, down from a previous estimate of 16%, and diluted headline earnings per share (DHEPS) growth is expected to be in the low single digits. Still, Nedbank reported a 6% rise in headline earnings to R8.4bn and an ROE improvement to 15.2%. Growth was driven by increased non-interest revenue, better associate income, improved impairment charges, and effective expense management, although net interest income growth remained subdued. Quinn noted global geopolitical and economic pressures dampened business confidence. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Eyewitness News
5 days ago
- Business
- Eyewitness News
Nedbank plans exit from Togo-based Ecobank, to focus on Southern and East Africa
The Nedbank Group reports that its balance sheet remained strong in the first half of 2025, despite a challenging operating environment. Headline earnings rose 6% to R8.4 billion. Diluted headline earnings per share increased 7% to 1 762 cents a share. Revenue was up 4% to R36 406 million for the six months to end-June 2025. The Group declared an Interim dividend of 1 028 cents per share, a 6% increase on the previous period. Nedbank also announced that it plans to sell its 21.2% stake in Ecobank, based in Togo in West Africa, to focus more on Southern and East Africa. This marks the end of a 17-year strategic alliance that enabled the Joburg-based lender to expand its footprint beyond southern Africa. Stephen Grootes asks Nedbank Group CEO Jason Quinn about this strategic review of its continental assets. What became clear to them is that having a minority stake in a bank created strategic issues in that they couldn't necessarily execute or drive the strategies they might have wanted to, Quinn says.
TimesLIVE
5 days ago
- Business
- TimesLIVE
Nedbank to sell Ecobank stake as focus shifts to Southern and East Africa
Nedbank Group posted a 6% rise in half-yearly headline earnings on Tuesday, while announcing its intentions to sell its 21.2% stake in Pan-African lender Ecobank to focus on Southern Africa and East Africa regions. Ecobank's operations in central and West Africa are exposed to some economies that have been pressured by unfavourable currency swings since Nedbank bought the stake in 2014. In Nigeria, where Ecobank has a large operation, various South African clients have exited from the region, which has limited cross-sell opportunities, while collaborative benefits have not been forthcoming, Nedbank said. Nedbank chief executive Jason Quinn said a review recognised the risks of continuing to hold onto the group's investment in Ecobank due to regulatory uncertainty and potential increase in capital requirements. "The board has approved a formal plan to dispose of the investment, and we are currently engaging interested parties and, if a sale is concluded, it will be a clean deal," Quinn said in a statement.
Reuters
5 days ago
- Business
- Reuters
Nedbank to sell Ecobank stake as focus shifts to Southern and East Africa
JOHANNESBURG, Aug 5 (Reuters) - South Africa's Nedbank Group (NEDJ.J), opens new tab posted a 6% rise in half-yearly headline earnings on Tuesday, while announcing its intentions to sell its 21.2% stake in Pan-African lender Ecobank ( opens new tab to focus on Southern Africa and East Africa regions. Ecobank's operations in central and West Africa are exposed to some economies that have been pressured by unfavourable currency swings since Nedbank bought the stake in 2014. In Nigeria, where Ecobank has a large operation, various South African clients have exited from the region, which has limited cross-sell opportunities, while collaborative benefits have not been forthcoming, Nedbank said. Nedbank Chief Executive Jason Quinn said a review recognised the risks of continuing to hold onto the group's investment in Ecobank due to regulatory uncertainty and potential increase in capital requirements. "The board has approved a formal plan to dispose of the investment, and we are currently engaging interested parties and, if a sale is concluded, it will be a clean deal," Quinn said in a statement. Over the time that Nedbank has held an interest in Ecobank, associate income of 6.8 billion rand ($378.6 million) has been recognised; however, only 4 million rand has been realised through dividends received, the lender said. As of June 30, the investment in Ecobank had a carrying value of 1.8 billion rand and a market value of 1.9 billion rand. For the six months ended June 30, the bank's headline earnings, a profit measure, grew to 8.4 billion rand ($468 million) from 7.9 billion rand a year earlier. The lender revised its 2025 forecasts citing a more difficult than expected South African business environment and change in its strategy regarding Ecobank. "We now expect DHEPS (diluted headline earnings per share) growth for the year to be in low single digits and return on equity around 15%," Quinn said. Shares of Nedbank slumped more than 5% at the market open. ($1 = 17.9624 rand)
Bloomberg
5 days ago
- Business
- Bloomberg
South Africa's Nedbank Resets Africa Strategy
Ecobank's biggest shareholder, Nedbank, plans to sell its stake in the pan-African lender as South Africa's fourth-biggest bank by assets narrows its focus on the continent. CEO Jason Quinn spoke to Bloomberg's Jennifer Zabasajja in Johannesburg. (Source: Bloomberg)
