GSE Q4 2025 PDF 1.06 MB

Statement of directors' responsibilities

Management Report -Internal Controls Over Financial Reporting Independent auditors' report

Press release

Consolidated statement of comprehensive income USD

Consolidated statement of comprehensive income GHC Consolidated statement of financial position USD

Consolidated statement of financial position GHC

Consolidated statement of changes in equity USD Consolidated statement of changes in equity GHC

Consolidated statement of cash flows USD Consolidated statement of cash flows GHC

Notes to the consolidated financial statements

Responsibility for consolidated financial statements

The Directors are responsible for the preparation of the consolidated financial statements for each financial period that give a true and fair view of the financial position of the Group as at 31 December 2025 and the results of its operations, statement of cash flow, income statement and changes in equity for the year ended 31 December 2025 is compliance with IFRS Accounting standards . This responsibility includes ensuring that the Group:

1. keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Group;

2. establishes adequate internal controls to safeguard its assets and to prevent and detect fraud and other irregularities; and

3. prepares its consolidated financial statements using suitable accounting policies supported by reasonable and prudent judgments and estimates, that are consistently applied.

The Directors accept responsibility for the consolidated financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with IFRS Accounting standards.

Nothing has come to the attention of the Directors to indicate that the group will not remain a going concern for at least twelve months from the date of this statement.

The Directors are of the opinion that the consolidated financial statements give a true and fair view of the state of the financial affairs of the Group and of its profit or loss for the year ended 31 December 2025. The Directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of the financial statements, as well as adequate systems of internal financial control.

Approval of consolidated financial statements

The consolidated financial statements were approved by the Board of Directors on 10 April 2026 and signed on its behalf by:

Jeremy Awori Ayo Adepoju, Ph.D.

Group Chief Executive Officer Group Executive Director and CFO

Ecobank Management has set up and maintained a sufficient system of internal control over financial (ICoFR) according to the Sections 60 - 63 of the Investments and Securities Act, 2007 from the SEC Nigeria, which includes protecting assets from unauthorized access, use or loss.

This system is intended to provide reasonable assurance to management and the board of directors about producing reliable financial statements for publication and safeguarding the Corporation's assets with self-checking mechanisms and is audited by the internal audit function.

This system is supported by written policies and procedures such as the scoping and materiality assessment document, 30 separate process manuals that describe clear process flows with adequate description of ICOFR related risks and controls that apply to the end-to-end processes for each of the 40 significant Financial Statement Lines -FSLIs scoped from both balance sheet and Income Statement of the Group. A consolidated ICOFR related Risk and Control Matrix-RCM has been also issued to guide ICOFR related controls testing process covering all significant FSLIs across the Group.

Management takes appropriate actions to fix deficiencies as they are identified. All internal control systems have inherent limitations, including the possibility of bypassing and overriding of controls, and, therefore, can provide only reasonable assurance about the reliability of financial statement preparation and such asset protection.

Ecobank Group has evaluated the effectiveness of its internal control over financial reporting as of December 31, 2025. In making this evaluation, it used the criteria described in "Internal Control - Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation, management believes that, as of December 31, 2025 the Ecobank Group's internal control over financial reporting is effective. Deloitte and Grant Thornton have issued a joint report on management's evaluation and on the effectiveness of the Group's internal control over financial reporting.

Jeremy Awori Ayo Adepoju,Ph.D.

Group Chief Executive Officer Group Chief Financial Officer

FRC/2017/ICAN/00000017517

Ecobank Group reports audited performance for the year ended 31 December 2025

• Revenue up 17% to $2,449.0 million (up 4% to GHC 30,785.6 billion)

• Operating profit before impairment charges up 29% to $1,265.3 million (up 14% to GHC 15,905.2 million)

• Profit before tax up 21% to $800.9 million (up 7% to GHC 10,067.9 million)

• Profit after tax up 20% to $594.1 million (up 7% to GHC 7,468.5 million)

• Total assets up 23% to $34.5 billion (down 12% to GHC 360.4 billion)

• Loans and advances to customers down 19% to $11.8 billion (down 16% to GHC123.0 billion)

• Deposits from customers up 24% to $25.3 billion (down 12% to GHC 264.4 billion)

• Total equity up 60% to $2.9 billion (up 13% to GHC 29.9 billion)

US$'000 GHC'000 US$'000 GHC'000 US$ GHC

2,448,994

1,265,256

800,905

594,122

30,785,595

15,905,167

10,067,945

7,468,536

2,086,073

984,148

661,863

493,630

29,565,385

13,948,080

9,380,416

6,996,093

attributable to owners of the parent during the period (expressed in United States ce

ns attributable to owners of the parent during the period (expressed in United States

34,487,211

360,391,355

11,774,883

123,047,527

25,304,908

2,863,523

264,436,289

29,923,814

27,955,172

410,941,028

9,906,819

145,630,239

20,423,736

1,794,802

300,228,919

26,383,589

US$'000 GHC'000 US$'000 GHC'000 US$ GHC

Jeremy Awori Ayo Adepoju,Ph.D.

Group Chief Executive Officer Group Executive Director and CFO

https://www.ecobank.com

1250

Consolidated statement of comprehensive income - USD

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. nm-not meaningful.

Consolidated statement of comprehensive income - GHC

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. nm-not meaningful.

Consolidated statement of financial position - USD

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

The above consolidated statement of financial position should be read in conjunction with the accompanying notes

Consolidated statement of changes in equity - USD

Amounts in US$'000

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Consolidated statement of changes in equity - GHC

Amounts in GHC '000

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the financial statements

1. General information

   Ecobank Transnational Incorporated (ETI) and its subsidiaries (together, 'the Group') provide retail, corporate and investment banking services throughout sub Saharan Africa outside South Africa. The Group had presence in 39 countries and employed over 13,889 people as at 31 December 2025 (31 December 2024:14,560) .

   Ecobank Transnational Incorporated is a limited liability company and is incorporated and domiciled in the Republic of Togo. The address of its registered office is as follows: 2365 Boulevard du Mono, Lomé, Togo. The company has a primary listing on the Ghana Stock Exchange, the Nigerian Stock Exchange and the Bourse Regionale Des Valeurs Mobilieres (Abidjan) Cote D'Ivoire.

   The consolidated financial statements for the year ended 31 December 2025 have been approved by the Board of Directors on 10 April 2026.

2. Summary of material accounting policies

   This note provides a list of the material accounting policies adopted in the preparation of these consolidated financial statements to the extent they have not already been disclosed elsewhere. These policies have been consistently applied to all the periods presented, unless otherwise stated. The notes also highlight new standards and interpretations issued at the time of preparation of the consolidated financial statements and their potential impact on the Group. The financial statements are for the Group consisting of Ecobank Transnational Incorporated and its subsidiaries.

   1. Basis of presentation and measurement

      The Group's consolidated financial statements for the year ended 31 December 2025 have been prepared in accordance with IFRS® Accounting Standards (IFRS) Interpretations Committee (IFRS IC) guidance. The financial statements comply with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB).

      The consolidated financial statements have been prepared under the historical cost convention, except for the following:

      • financial assets and liabilities at fair value through other comprehensive income or fair value through statement of profit or loss.

      • Investment properties at fair value.

      • assets held for sale - measured at fair value less cost of disposal

      • land and buildings

      • the liability for defined benefit obligations recognized at the present value of the defined benefit obligation less the fair value of the plan assets.

        The consolidated financial statements are presented in US Dollars, which is the group's functional and presentation currency. The figures shown in the consolidated financial statements are stated in US Dollar thousands.

        The consolidated financial statements comprise the consolidated statement of comprehensive income (shown as two statements), the statement of financial position, the statement of changes in equity, the statement of cash flows and the accompanying notes.

        The consolidated statement of cash flows shows the changes in cash and cash equivalents arising during the period from operating activities, investing activities and financing activities. Included in cash and cash equivalents are highly liquid investments.

        The cash flows from operating activities are determined by using the indirect method. The Group's assignment of the cash flows to operating, investing and financing category

        depends on the Group's business model.

        The preparation of financial statements in conformity with IFRS Accounting standards which requires the use of certain critical accounting estimates. It also requires Directors to exercise judgment in the process of applying the Group's accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate and that the Group's financial statements therefore present the financial position and results fairly. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in Note 3.

   2. Going concern

      The financial statements of Ecobank Transnational Incorporated ("ETI" or "the Group") have been prepared on a going concern basis. In assessing the appropriateness of this basis, the Directors considered the Group's current financial position, projected cash flows, capital adequacy, liquidity profile, covenant compliance, and the potential implications arising from the capital position of Ecobank Nigeria Limited ("ENG"), an affiliate of the Group.

      During the year, ENG experienced pressure on its regulatory capital position with its capital ratio below regulatory requirement. As a result, ENG is engaged with its regulator to evaluate and implement appropriate capital remediation measures. The Directors considered a range of reasonably possible scenarios and noted that in all cases assessed:

      • The Group's consolidated capital ratios remains above regulatory minimum requirements;

      • Liquidity coverage remains above regulatory thresholds;

      • No breach of debt covenants is projected;

      • The Group continues to meet all obligations as they fall due.

        The Directors are satisfied that the Group has adequate financial resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. Accordingly, the financial statements have been prepared on a going concern basis. The Directors have concluded that no material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern.

   3. New and amended IFRS Accounting Standards adopted by the group

      In the current year, the Group has applied a number of amendments to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB), that are mandatorily effective for an accounting period that begins on or after 1 January 2025. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements.

      i) Amendments to IAS 21 - Lack of exchangeability In August 2023, the Board issued Lack of exchangeability amendments to IAS 21.

      The amendments specifies how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. A currency is considered to be exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations.

      If a currency is not exchangeable into another currency, an entity is required to estimate the spot exchange rate at the measurement date. An entity's objective in estimating the spot exchange rate is to reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions. The amendments note that an entity can use an observable exchange rate without adjustment or another estimation technique.

      The amendment does not have any material impact on the Group.

   4. New and revised IFRS accounting standards in issue but not yet effective

1. IFRS 18: Presentation and Disclosure in Financial Statements (IFRS 18) has been issued but is not yet effective.

   The effective date for this IFRS Accounting Standard is for reporting periods beginning on or after 1 January 2027. IFRS 18 is expected to have a material impact on the Group as it will affect the presentation of the statement of comprehensive income and related disclosures. The standard introduces 3 new categories for income and expenses: the operating category, investing category and financing category. The categorisation of statement-of comprehensive-income line items will be based on the Group's main busines activity.

   The IFRS Accounting Standard aims to improve:

   • comparability in the statement of comprehensive income;

   • the transparency of management-defined performance measures; and

   • aggregation and disaggregation in the financial statements so that they are more useful.

   The Group has not elected to early-adopt this IFRS Accounting Standard, and its application will begin on 1 January 2027, with comparative adjustments to be made.. The assessment of the impact of IFRS 18 on the Group has commenced, including the assessment of the group's main business activity, which will inform the categorisation of certain income and expenses. In addition, the Group is continuously monitoring the IASB and related industry information.

2. IFRS 19 - Subsidiaries without Public Accountability: Disclosures

   Issued in May 2024 and effective for annual periods beginning on or after 1 January 2027 (early adoption permitted). This optional standard reduces disclosure requirements for eligible subsidiaries. These amendments are not expected to have a significant impact on the financial statements in the period of initial application. The Group has not elected early adoption of IFRS 19. The Group does not expect a material impact from adoption of the standard.

   1. Summary of material accounting policies (continued)

      1. New and revised IFRS accounting standards in issue but not yet effective

3. Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments

   The amendments in Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) are:

   1. Derecognition of a financial liability settled through electronic transfer

      The amendments permit an entity to deem a financial liability (or part of a financial liability) that is settled using an electronic payment system to be discharged (and derecognised) before the settlement date if specified criteria are met. If an entity elects to apply this accounting policy, it must do so for all settlements made through the same electronic payment system.

   2. Classification of financial assets

      • Contractual terms that are consistent with a basic lending arrangement

        The amendments provide guidance on how an entity should assess whether contractual cash flows of a financial asset are consistent with a basic lending arrangement. This is intended to assist an entity to apply the requirements for assessing contractual cash flow characteristics to financial assets with features linked to environmental, social and governance (ESG) concerns.

      • Assets with non-recourse features

        The amendments enhance the description of the term 'non-recourse', in particular to specify that a financial asset has non-recourse features if an entity's ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets.

      • Contractually linked instruments

        The amendments clarify the characteristics of contractually linked instruments that distinguish them from other transactions. Specifically, the amendments highlight that in such instruments a prioritisation of payments to the holders of financial assets using multiple contractually linked instruments (tranches) is established through a waterfall payment structure, resulting in concentrations of credit risk and a disproportionate allocation of losses between the holders of different tranches. The amendments also note that not all transactions with multiple debt instruments meet the criteria of transactions with multiple contractually linked instruments. In addition, the amendments clarify that the reference to instruments in the underlying pool can include financial instruments that are not within the scope of the classification requirements.&

   3. Disclosures

      • Investments in equity instruments designated at FVTOCI

        The requirements in IFRS 7 are amended to require an entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss that relates to investments derecognised in the period and the fair value gain or loss that relates to investments held at the end of the period.

      • Contractual terms that could change the timing or amount of contractual cash flows

        The amendments require an entity to disclose the contractual terms that could change the timing or amount of contractual cash flows on the occurrence (or non-occurrence) of a contingent event that does not relate directly to changes in a basic lending risks and costs. The requirements apply to each class of financial asset measured at amortised cost or FVTOCI and each class of financial liability measured at amortised cost.

        The amendments are effective for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted. If an entity elects to apply these amendments for an earlier period, it is required to either:

      • apply all the amendments at the same time and disclose that fact or

      • apply only the amendments to the classification of financial assets for that earlier period and disclose that fact.

      The amendments are required to be applied retrospectively, in accordance with IAS 8, with specific exceptions.

      The directors of the entity anticipate that the application of these amendments may have an impact on the group's consolidated financial statements in future periods.

      There are no other IFRS Accounting Standards, amendments or improvements that are not yet effective and that are expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.

      1. Foreign currency translation

         1. Functional and presentation currency

            Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency').

            The consolidated financial statements are presented in United States dollars, which is the Group's presentation currency.

         2. Transactions and balances

            Foreign currency transactions are translated into the functional currency using the official exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss.

            Changes in the fair value of monetary securities denominated in foreign currency classified as FVTOCI are analysed between translation differences resulting from changes in the amortised cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in amortised cost are recognised in profit or loss, and other changes in carrying amount are recognised in other comprehensive income.

            Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are recognised in the income statement as part of the fair value gain or loss. Translation differences on non-monetary financial assets, such as equities classified as FVTOCI, are included in other comprehensive income.

         3. Group companies

            The results and financial position of all group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

            1. Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

            2. Income and expenses for each income statement are translated at average exchange rates; (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions) and

            3. All resulting exchange differences are recognised in other comprehensive income.

               Exchange differences arising from the above process are reported in shareholders' equity as 'Foreign currency translation differences'.

               On consolidation, exchange differences arising from the translation of the net investment in foreign entities are recognised in other comprehensive income.When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or loss on sale.

               Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

               2 Summary of material accounting policies (continued) Foreign currency translation (continued)

         4. Classification of hyper-inflationary economies.

            IAS 29, 'Financial Reporting in Hyperinflationary Economies,' mandates that entities with a functional currency in a hyperinflationary economy must adjust their financial statements to reflect changes in a suitable general price index. This ensures figures are presented in the current unit of measurement at the reporting period's closing date. Consequently, inflation occurring since the acquisition or revaluation date, as applicable, must be calculated for non-monetary items. Before designating an economy as hyperinflationary, the Group conducts a thorough assessment, considering both qualitative and quantitative factors as stipulated by IAS 29. When both sets of factors are met, the Group appropriately accounts for the affiliate's operations under IAS 29, where considered material.

      2. Sale and repurchase agreements

         Securities sold subject to repurchase agreements ('repos') are reclassified in the financial statements as pledged assets when the transferee has the right by contract or custom to sell or repledge the collateral; the counterparty liability is included in deposits from banks or deposits from customers, as appropriate. Securities purchased under agreements to resell ('reverse repos') are recorded as loans and advances to other banks or customers, as appropriate. The difference between sale and repurchase price is treated as interest and accrued over the life of the agreements using the effective interest method. Securities lent to counterparties are also retained in the financial statements.

      3. Determination of fair value

         Fair value under IFRS 13, Fair Value Measurement ('IFRS 13') is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market condition (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique.

         For financial instruments traded in active markets, the determination of fair values of financial assets and financial liabilities is based on quoted market prices or dealer price quotations. This includes listed equity securities and quoted debt instruments on exchanges (for example, NSE, BVRM, GSE) and quotes from approved bond market makers. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer or broker, and those prices represent actual and regularly occurring market transactions on an arm's length basis. If the above criteria are not met, the market is regarded as being inactive. Indications that a market is inactive are when there is a wide bid-offer spread or significant increase in the bid-offer spread or there are few recent transactions.

         For all other financial instruments, fair value is determined using valuation techniques. In these techniques, fair values are estimated from observable data in respect of similar financial instruments, using models to estimate the present value of expected future cash flows or other valuation techniques, using inputs existing at the dates of the consolidated statement of financial position.

         The Group uses widely recognised valuation models for determining fair values of non-standardized financial instruments of lower complexity, such as options or interest rate and currency swaps. For these financial instruments, inputs into models are generally market observable.

         The output of a model is always an estimate or approximation of a value that cannot be determined with certainty, and valuation techniques employed may not fully reflect all factors relevant to the positions the Group holds. Valuations are therefore adjusted, where appropriate, to allow for additional factors including model risks, liquidity risk and counterparty credit risk. Based on the established fair value model governance policies, and related controls and procedures applied, management believes that these valuation adjustments are necessary and appropriate to fairly state the values of financial instruments carried at fair value in the consolidated statement of financial position. Price data and parameters used in the measurement procedures applied are generally reviewed carefully and adjusted, if necessary - particularly in view of the current market developments.

         The fair value of over-the-counter (OTC) derivatives is determined using valuation methods that are commonly accepted in the financial markets, such as present value techniques and option pricing models. The fair value of foreign exchange forwards is generally based on current forward exchange rates. Structured interest rate derivatives are measured using appropriate option pricing models (for example, the Black-Scholes model) or other procedures such as Monte Carlo simulation.

         The fair value for loans and advances as well as liabilities to banks and customers are determined using a present value model on the basis of contractually agreed cash flows, taking into account credit quality, liquidity and costs.

      4. Fee and commission income

         The Group applies IFRS 15 to all revenue arising from contracts with clients, unless the contracts are in the scope of the standards on leases, insurance contracts and financial instruments. The Group recognises revenues to depict the transfer of promised service to customers in an amount that reflects the consideration the Group expects to be entitled in exchange for the service.

         Portfolio management advisory and service fees	Recognised based on the applicable service contracts, in most instances on a time-apportionment basis.
         Commission and fees arising from negotiating, or participating in the negotiation of, a transaction for a third party	Recognised on completion of the underlying transaction.
         Asset management fees related to investment funds	Recognised over the period in which the service is provided. The initial fees that exceed the level of recurring fees and relate to the future provision of services are deferred and amortised over the projected period over which services will be provided
         Wealth management, financial planning and custody services	Recognised over the period in which the service is provided. The initial fees that exceed the level of recurring fees and relate to the future provision of services are deferred and amortised over the projected period over which services will be provided

      5. Dividend income

         Dividends are recognised in the consolidated income statement in other operating income when the entity's right to receive payment is established which is generally when the

         shareholders approve the dividend.

      6. Trading income

         Trading income comprises gains less losses related to trading assets and liabilities, and it includes all fair value changes and foreign exchange differences.

      7. Impairment of non-financial assets

         Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are reviewed for impairment at each reporting date. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash flows from other assets or group of assets (cash-generating units). The impairment test also can be performed on a single asset when the fair value less cost to sell or the value in use can be determined reliably. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

      8. Share-based payments

         The Group does not operate any equity-settled share-based payment arrangements. Accordingly, no expense has been recognised in the current or prior year in relation to share-based payment transactions.

         2 Summary of material accounting policies (continued)

      9. Cash and cash equivalents

         For purposes of presentation in the statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value and bank overdrafts.

      10. Repossessed collateral and properties

          Repossessed collateral are equities, landed properties or other investments repossessed from customers and used to settle the outstanding obligations. Such investments and other assets are classified in accordance with the intention of the Group in the asset class which they belong. Repossessed properties acquired in exchange for loans as part of an orderly realisation are reported in 'other assets'. The repossessed properties are recognised when the risks and rewards of the properties have been transferred to the Group. The corresponding loans are derecognised when the Group becomes the holder of the title deed. The properties acquired are initially recorded fair value. They are subsequently measured at the lower of the carrying amount or net realisable value. No depreciation is charged in respect of these properties. Any subsequent write-down of the acquired properties to net realisable value is recognised in the statement of comprehensive income. Any subsequent increase in net realisable value, to the extent that it does not exceed the cumulative write-down, is also recognised in the statement of comprehensive income. Gains or losses on disposal of repossessed properties are reported in 'Other operating income' or 'Operating expenses', as the case may be.

      11. Leases

          The group leases various offices, branches, houses, ATM locations, equipment and cars. Rental contracts are typically made for fixed periods of 1 to 65 years but may have extension options as described in (ii) below. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes.

          From 1 January 2019, leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

          Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

          • fixed payments (including in-substance fixed payments), less any lease incentives receivable

          • variable lease payment that are based on an index or a rate

          • amounts expected to be payable by the lessee under residual value guarantees

          • the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

          • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

            The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the affiliate's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

            Right-of-use assets are measured at cost comprising the following:

          • the amount of the initial measurement of lease liability

          • any lease payments made at or before the commencement date less any lease incentives received

          • any initial direct costs, and

          • restoration costs.

          Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment, copiers and other small items of office furniture.

          Extension and termination options are included in a number of property and equipment leases across the Group. These terms are used to maximise operational flexibility in terms of managing contracts. The majority of extension and termination options held are exercisable only by the Group and not by the respective lessor.

      12. Investment properties

          Properties that are held for long-term rental yields or for capital appreciation or both, and that are not occupied by the entities in the Group, are classified as investment properties. Investment properties comprise office buildings and Commercial Bank parks leased out under operating lease agreements.

          Some properties may be partially occupied by the Group, with the remainder being held for rental income or capital appreciation. If that part of the property occupied by the Group can be sold separately, the Group accounts for the portions separately. The portion that is owner-occupied is accounted for under IAS 16, and the portion that is held for rental income or capital appreciation or both is treated as investment property under IAS 40. When the portions cannot be sold separately, the whole property is treated as investment property only if an insignificant portion is owner-occupied.

          Recognition of investment properties takes place only when it is probable that the future economic benefits that are associated with the investment property will flow to the entity and the cost can be measured reliably. This is usually the day when all risks are transferred. Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing parts of an existing investment property at the time the cost has been incurred if the recognition criteria are met; and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the date of the consolidated statement of financial position. Gains or losses arising from changes in the fair value of investment properties are included in the consolidated income statement in the year in which they arise. Subsequent expenditure is included in the asset's carrying amount only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the consolidated income statement during the financial period in which they are incurred.

          Rental income from investment property is recognised in the income statement on a straight-line basis over the term of the lease.

          The fair value of investment properties is based on the nature, location and condition of the specific asset. The fair value is calculated by discounting the expected net rentals at a rate that reflects the current market conditions as of the valuation date adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. The fair value of investment property does not reflect future capital expenditure that will improve or enhance the property and does not reflect the related future benefits from this future expenditure. These valuations are performed annually by external appraisers.

          Investment properties are derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The gain or loss on disposal is calculated as the difference between the net disposal proceeds and the carrying amount of the asset and is recognised as other income in the profit and loss.

      13. Property and equipment

          Items of property and equipment are initially recognised at cost if it is probable that any future economic benefits associated with the items will flow to the group and they have a cost that can be measured reliably. Subsequent expenditure is capitalised to the carrying amount of items of property and equipment if it is measurable and it is probable that it increases the future economic benefits associated with the asset. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repair and maintenance costs are charged to other operating expenses during the financial period in which they are incurred.

          Land and buildings comprise mainly branches and offices and are measured using the revaluation model. All other property and equipment used by the Group is stated at historical cost less depreciation. Subsequent to initial recognition, motor vehicles, furniture and equipment, installations and computer equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

          Land and buildings are carried at revalued amounts, being the fair value at the date of revaluation less any subsequent accumulated depreciation and impairment losses. If an item of property, plant and equipment is revalued, the entire class of property, plant and equipment to which that asset belongs shall be revalued. Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the reporting date. If an asset's carrying amount is increased as a result of a revaluation, the increase shall be credited directly to other comprehensive income. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. If an asset's carrying amount is decreased as a result of a revaluation, the decrease shall be recognised in profit or loss. However, the decrease shall be debited directly to equity under the heading of revaluation reserve to the extent of any credit balance existing in the revaluation surplus in respect of that asset. For assets revalued, any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is restated to the revalued amount of the asset. Land and buildings are the class of items that are revalued on a regular basis. The other items are evaluated at cost.

          An independent valuation of the Group's land and buildings was performed by professionally qualified independent valuers to determine the fair value of the land and buildings as at year end. The revaluation surplus net of applicable deferred income taxes was credited to other comprehensive income and is shown in 'revaluation reserve - property and equipment' in shareholders equity (Note 41). Fair value is derived by applying internationally acceptable and appropriately benchmarked valuation techniques such as depreciated replacement cost or market value approach. The depreciated replacement cost approach involves estimating the value of the property in its existing use and the gross replacement cost. For these appropriate deductions are made to allow for age, condition and economic or functional obsolescence, environmental and other factors that might result in the existing property being worth less than a new replacement. The market value approach involves comparing the properties with identical or similar properties, for which evidence of recent transaction is available or alternatively identical or similar properties that are available in the market for sale making adequate adjustments on price information to reflect any differences in terms of actual time of the transaction, including legal, physical and economic characteristics of the properties.

          Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

          -Buildings 25-50 year

          -Leasehold improvements 25 years or over the period of the lease if less than 25 years

          -Furniture,equipment installations 3-5 years

          -Motors vehicles 3-10 years

          The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Assets are subject to review for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. The recoverable amount is the higher of the asset's fair value less costs to sell and value in use.

      14. Intangible assets

          1. Goodwill

             Goodwill represents the excess of the cost of acquisition over the fair value of the Group's share of the net identifiable assets of the acquired subsidiaries and associates at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisitions of associates is included in investments in associates.

             Goodwill is allocated to cash-generating units for the purpose of impairment testing. Each of those cash-generating units is represented by each primary reporting segment.

             Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstance indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment is tested by comparing the present value of the expected future cash flows from a cash generating unit with the carrying value of its net assets, including attributable goodwill. Impairment losses on goodwill are not reversed.

          2. Computer software licences

             Acquired computer software licences are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised on the basis of the expected useful lives.

             Costs associated with maintaining computer software programs are recognised as an expense incurred. Development costs that are directly associated with the production of identifiable and unique software products controlled by the Group, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Direct costs include software development employee costs and an appropriate portion of relevant overheads.

             Computer software development costs recognised as assets are amortised using the straight-line method over their useful lives (not exceeding three years).

      15. Income tax

          1. Current income tax

             Income tax payable (receivable) is calculated on the basis of the applicable tax law in the respective jurisdiction and is recognised as an expense (income) for the period except to the extent that current tax related to items that are charged or credited in other comprehensive income or directly to equity. In these circumstances, current tax is charged or credited to other comprehensive income or to equity (for example, current tax on debt instruments at FVOCI).

             Where the Group has tax losses that can be relieved against a tax liability for a previous year, it recognises those losses as an asset, because the tax relief is recoverable by refund of tax previously paid. This asset is offset against an existing current tax balance. Where tax losses can be relieved only by carry-forward against taxable profits of future periods, a deductible temporary difference arises. Those losses carried forward are set off against deferred tax liabilities carried in the consolidated statement of financial position. The Group does not offset income tax liabilities and current income tax assets.International Tax Reform-Pillar Two model rules (amendments to IAS 12)

             The Group is a multinational enterprise with a turnover of more than $2.b. It is subject to the Organization for Economic Cooperation and Development (OECD) Pillar Two model rules, which aim to ensure that the effective tax rate of affected entities is at least 15%. Pillar Two legislation is not yet substantially enacted in Togo, the jurisdiction in which the company is incorporated. The Group has no related current tax exposure.

             The Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.

             Overall the Group does not anticipate any material impact.

          2. Deferred income tax

      Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from the initial recognition of an asset or liability in transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the date of the consolidated statement of financial position and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

      1. Income tax (Continued)

         b) Deferred income tax (continued)

         The principal temporary differences arise from depreciation of property, plant and equipment, revaluation of certain financial assets and liabilities, provisions for pensions and other post-retirement benefits and carry-forwards; and, in relation to acquisitions, on the difference between the fair values of the net assets acquired and their tax base, fair value changes on investment securities , tax loss carried forward, revaluation on property and equipment. Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred income tax is provided on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the difference will not reverse in the foreseeable future.

         The tax effects of carry-forwards of unused losses or unused tax credits are recognised as an asset when it is probable that future taxable profits will be available against which these losses can be utilised.

         Deferred tax related to fair value re-measurement of investment securities , which are recognised in other comprehensive income, is also recognised in the other comprehensive income and subsequently in the consolidated income statement together with the deferred gain or loss.

      2. Provisions

         Provisions for restructuring costs and legal claims are recognised when the Group has a present legal or constructive obligation as a result of past events; it is more probable than not that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated. The Group recognises no provisions for future operating losses.

         Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

         Provisions are measured at the present value of management's best estimate of the expenditures required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

      3. Employee benefits

         1. Pension obligations

            A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive

            obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that is not a defined contribution plan.

            Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

            The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used.

            Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.

            Past-service costs are recognised immediately in income.

            For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary

            basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

         2. Other post-retirement obligations

            The Group also provides gratuity benefits to its retirees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using the same accounting methodology as used for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. These obligations are valued annually by independent qualified actuaries.

         3. Termination benefits

         Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of IAS 37 and involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.

   4. Profit-sharing and bonus plans

      The Group recognises a liability and an expense for bonuses and profit-sharing, based on a formula that takes into consideration the profit attributable to the company's shareholders after certain adjustments. The Group recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

   5. Short term benefits

The Group seeks to ensure that the compensation arrangements for its employees are fair and provide adequate protection for current and retiring employees. Employee benefits are determined based on individual level and performance within defined salary bands for each employee grade. Individual position and job responsibilities will also be considered in determining employee benefits. Employees will be provided adequate medical benefits and insurance protection against disability and other unforeseen situations. Employees shall be provided with retirement benefits in accordance with the Separation and Termination policies. Details of employee benefits are available with Group or Country Human Resources.

For the purposes of this assessment, 'principal' is defined as the fair value of the financial asset on initial recognition. Principal may change over the life of the instruments due to repayments. 'Interest' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making the assessment, the Group considers:

• contingent events that would change the amount and timing of cash flows;

• leverage features;

• prepayment and extension terms;

• terms that limit the Group's claim to cash flows from specified assets (e.g. nonrecourse asset arrangements); and

• features that modify consideration of the time value of money - e.g. periodical reset of interest rates.

The Group classifies the financial instruments into classes that reflect the nature of information and take into account the characteristics of those financial instruments. The classification made can be seen in the table below:

Financial assets

Category (as defined by IFRS9) Class (as determined by the Group) Note

Fair Value Through Statement of Profit or Loss (FVTPL) Trading financial assets 17

Derivative financial instruments 18

Amortised Cost Cash and balances with central banks 16

Loans and advances to banks 19

Loans and advances to customers 20

Other assets, excluding prepayments and repossessed assets 24

Investment securities 22

Treasury bills and other eligible bills 21

Pledged assets 23

Fair Value Through Other Comprehensive Income (FVTOCI) Treasury bills and other eligible bills 21

Investment securities 22

Financial liabilities

Category (as defined by IFRS9) Class (as determined by the Group) Note

Off balance sheet financial instruments

Category (as defined by IFRS9) Class (as determined by the Group) Note

Loan commitments Loan commitments 38

Guarantees, acceptances and other financial facilities Guarantees, acceptances and other financial facilities 38

3 Critical accounting estimates, and judgments in applying accounting policies

The preparation of financial statements requires the use of accounting estimates, which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Group's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

This note provides an overview of the areas that involve a higher degree of judgement or complexity, and major sources of estimation uncertainty. Detailed information about each of these estimates and judgements is included in the related notes together with information about the basis of calculation for each affected line item in the financial statements.

1. Impairment losses on loans and advances

   The Group reviews its loan portfolios to assess impairment at least monthly. Where impairment has been identified, an allowance for impairment is recorded. The allowance is based on the ECLs associated with the probability of default in the next twelve months unless there has been a significant increase in credit risk since origination in which case loss allowance is measured at an amount equal to lifetime ECL. If the financial asset meets the definition of purchased or originated credit impaired (POCI), the allowance is based on the change in the ECLs over the life of the asset.

   The Group generally considers a debt security to have low credit risk when their credit risk rating is equivalent to the globally understood definition of 'investment grade'. Loss

   allowances on such low credit risk instrument are recognised at the equivalent of 12-month ECL.

   The measurement of the expected credit loss allowance for financial assets measured at amortised cost and FVTOCI is an area that requires the use of complex models and significant assumptions about future economic conditions and credit behaviour (e.g. the likelihood of customers defaulting and the resulting losses). A number of significant judgements are also required in applying the accounting requirements for measuring ECL, such as the expected life of the instrument, determination of significant increase in credit risk, selection of appropriate macro-economic variables and other forward-looking information etc.

   1. Determining criteria for significant increase in credit risk and choosing appropriate models and assumptions for the measurement of ECL

      The assessment of SICR and the calculation of ECL both incorporate forward-looking information. In assessing SICR, the Group has performed historical analysis and identified the key economic variables impacting credit risk and expected credit losses for each portfolio. These economic variables and their associated impact on the PD, EAD and LGD vary by financial instrument. Expert judgment has been applied in this process.

      1. Critical accounting estimates, and judgements in applying accounting policies (continued)

   2. Establishing the number and relative weightings of forward-looking scenarios for each type of product/market and the associated ECL

      The scenario weightings applied in the incorporation of the forward-looking information into the calculation of ECL are determined by a combination of statistical analysis and expert credit judgement, taking account of the range of possible outcomes each chosen scenario is representative of. The forward-looking information used in ECL are based on forecasts. As with any economic forecasts, the projections and likelihoods of occurrence are subject to a high degree of inherent uncertainty and therefore the actual outcomes may be significantly different to those projected. The Group considers these forecasts to represent its best estimate of the possible outcomes and has analysed the non-linearities and asymmetries within the Group's different portfolios to establish that the chosen scenarios are appropriately representative of the range of possible scenarios.

   3. Establishing groups of similar financial assets for the purposes of measuring ECL

      In determining whether an impairment loss should be recorded in the income statement, the Group makes judgements as to movement in the level of credit risk on the instrument since origination. Management uses estimates based on historical loss experience for assets with credit risk characteristics and objective evidence of impairment similar to those in the portfolio when scheduling its future cash flows. The methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed regularly to reduce any differences between loss estimates and actual loss experience.

   4. Establishing Probability of Default parameters (PD)

      The bank estimates the PD as the ratio of exposures transitioning to default at the end of an observation period to the initial exposures at the start of an observation period. The observation period is one quarter. The data for the analysis would cover several years, hence the several quarters are observed. The estimated quarterly PD is the average of the number of quarters observed over the years covering the default database.

      The estimated average quarterly PD is transformed into 12 month PDs using and lifetime PDs using Markov matrix calculus.

   5. Establishing loss given default parameters (LGD)

      LGDs are determined by estimating expected future cash flows, adjusted for forward-looking information. These cash flows include direct costs and proceeds from the sale of collateral. Collateral recovery rates are based on historically observed outcomes. The statistical models applied implicitly assume that risk drivers that influence default risk, payment behaviour and recovery expectations within historical data will continue to be relevant in the future.

2. Fair value of financial instruments

   The fair value of financial instruments that are not quoted in active markets are determined by using valuation techniques. Where valuation techniques (for example, models) are used to determine fair values, they are validated and periodically reviewed by qualified personnel independent of the area that created them. To the extent practical, models use only observable data; however, areas such as credit risk (both own and counterparty), volatilities and correlations require management to make estimates. Changes in assumptions about these factors could affect reported fair value of financial instruments. Fair value is determined using valuation techniques. In these techniques, fair values are estimated from observable data in respect of similar financial instruments, using models to estimate the present value of expected future cash flows or other valuation techniques, using inputs existing at the dates of the consolidated statement of financial position.

3. Taxes

   Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies.

4. Business model assessment

   Classification and measurement of financial assets depends on the results of the SPPI and the business model test (please see financial assets sections of Note 2.30.1). The Group determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. This assessment includes judgement reflecting all relevant evidence including how the performance of the assets is evaluated and their performance measured, the risks that affect the performance of the assets and how these are managed and how the managers of the assets are compensated. The Group monitors financial assets measured at amortised cost or fair value through other comprehensive income that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons are consistent with the objective of the business for which the asset was held. Monitoring is part of the Group's continuous assessment of whether the business model for which the remaining financial assets are held continues to be appropriate and if it is not appropriate whether there has been a change in business model and so a prospective change to the classification of those assets.

5. Going Concern

In applying the going concern basis , the Directors exercised significant judgement in evaluating:

• The severity and likelihood of adverse capital outcomes at ENG;

• The Group's ability to absorb impairment stress at the Group level;

• The effectiveness of structural ring fencing arrangements preventing cross default risk;

• The Group's liquidity stress scenarios.

These assessments required forward looking assumptions regarding regulatory outcomes, and capital remediation pathways.

The Directors concluded that, while ENG is continuing with its efforts to raise capital to comply with minimum regulatory capital requirements, it does not give rise to a material uncertainty at Group level.

1. Liquidity risk management

   Liquidity risk is the risk that the Group is unable to meet its payment obligations associated with its financial liabilities when they fall due and to replace funds when they are withdrawn. The consequence may be the failure to meet obligations to repay depositors and fulfil commitments to lend.

   1. Liquidity risk management process

      The Group's liquidity management process, as carried out within the Group and monitored by a separate team in Group Treasury, includes:

      • Day-to-day funding, managed by monitoring future cash flows to ensure that requirements can be met. This includes replenishment of funds as they mature or are borrowed by customers;

      • Maintaining a portfolio of highly marketable assets that can easily be liquidated as protection against any unforeseen interruption to cash flow;

      • Monitoring statement of financial position liquidity ratios against internal and regulatory requirements; and

      • Managing the concentration and profile of debt maturities.

   2. Undiscounted cash flows

      The table below presents the cash flows payable by the Group by remaining contractual maturities at the statement of financial position date. The amounts disclosed in the table are the contractual undiscounted cash flows, whereas the Group manages the inherent liquidity risk based on expected undiscounted cash inflows.

      As at 31 December 2025

      Assets	Up to 1 month	1 -3 months	3 - 12 months	1 - 5 years	Over 5 years	Total
      Cash and balances with central banks	4,641,815	-	-	-	1,236,932	5,878,747
      Trading financial assets	-	123,894	108,687	-	-	232,581
      Derivative financial instruments	23,239	31,613	2,404	-	-	57,256
      Loans and advances to banks	2,026,145	404,239	480,924	-	-	2,911,308
      Loans and advances to customers	1,036,326	2,150,490	2,455,758	4,236,128	2,355,456	12,234,158
      Treasury bills and other eligible bills	111,246	184,382	2,042,949	17,931	-	2,356,508
      Investment securities	336,913	85,934	1,398,332	4,438,590	2,834,756	9,094,525
      Pledged assets	-	-	97,480	-	-	97,480
      Other assets excluding prepayments and repossessed assets	166,295	470,822	416,171	-	-	1,053,288
      Total assets (expected maturity dates)	8,341,979	3,451,374	7,002,705	8,692,649	6,427,144	33,915,851
      Liabilities
      Deposits from banks	1,242,265	1,059,006	354,836	-	-	2,656,107
      Deposit from customers	21,634,776	773,659	1,936,549	1,035,221	126,487	25,506,692
      Other borrowed funds	56,006	103,985	364,111	1,018,061	425,622	1,967,785
      Other liabilities	375,666	494,979	572,195	-	-	1,442,840
      Derivative financial instruments	-	-	8,830	-	-	8,830
      Total liabilities (contractual maturity dates)	23,308,713	2,431,629	3,236,521	2,053,282	552,109	31,582,254
      Gap analysis	(14,966,734)	1,019,745	3,766,184	6,639,367	5,875,035	2,333,597
      Off-balance sheet items
      Loan commitments	-	-	-	900,712	-	900,712
      Guarantees, acceptances and other financial facilities	689,176	615,408	1,079,573	773,241	-	3,157,398
      	689,176	615,408	1,079,573	1,673,953	-	4,058,110
      As at 31 December 2024	Up to 1 month	1 -3 months	3 - 12 months	1 - 5 years	Over 5 years	Total
      Assets
      Cash and balances with central banks	3,750,578	-	84,674	-	1,260,717	5,095,969
      Financial Asset held for trading	12,015	23,140	32,247	-	-	67,402
      Derivative financial instruments	52,656	2,194	1,133	22,471	-	78,454
      Loans and advances to banks	1,414,104	550,629	531,252	-	-	2,495,985
      Loans and advances to customers	672,247	985,442	2,515,718	4,664,718	1,811,602	10,649,727
      Treasury bills and other eligible bills	337,310	283,411	959,916	121,598	19,362	1,721,597
      Investment securities	32,876	137,092	1,081,618	4,994,340	1,587,191	7,833,117
      Pledged assets	-	-	19,018	-	-	19,018
      Other assets excluding prepayments and repossessed assets	5,331	249,131	443,228	-	-	697,690
      Total assets (expected maturity dates)	6,277,117	2,231,039	5,668,804	9,803,127	4,678,872	28,658,959
      Liabilities
      Deposits from banks	1,548,558	310,748	167,573	-	-	2,026,879
      Deposit from customers	17,187,769	344,210	2,100,671	706,008	253,844	20,592,502
      Borrowed funds	64,541	9,720	454,549	1,431,871	369,932	2,330,613
      Other liabilities	48,529	279,150	805,799	-	-	1,133,478
      Derivative financial instruments	-	-	35,146	-	-	35,146
      Total liabilities(contractual maturity dates)	18,849,397	943,828	3,563,738	2,137,879	623,776	26,118,618
      Gap analysis Off-balance sheet items	(12,572,280)	1,287,211	2,105,066	7,665,248	4,055,096	2,540,341
      Loan commitments	-	-	-	811,363	-	811,363
      Guarantees, acceptances and other financial facilities	827,909	712,839	454,876	575,637	-	2,571,261
      	827,909	712,839	454,876	1,387,000	-	3,382,624

2. Fair value of financial assets and liabilities

   1. Financial instruments not measured at fair value

      The table below summarises the carrying amounts and fair values of those financial assets and liabilities not measured at fair value on the group's consolidated statement of financial position.

      Carrying value Fair value

      Financial assets:	31 Dec. 2025	31 Dec. 2024	31 Dec. 2025	31 Dec. 2024
      Cash and balances with central banks	5,878,747	5,095,969	5,878,747	5,095,969
      Loans and advances to banks	2,887,458	2,391,697	2,887,458	2,391,697
      Loans and advances to customers	11,774,883	9,906,819	11,774,883	9,906,819
      Investment securities - Debt instruments	697,043	1,391,106	697,043	1,391,106
      Treasury bills and other eligible bills	375,198	232,722	375,198	232,722

      Other assets excluding prepayments and repossessed assets 1,062,964 771,616 1,062,964 771,616

      Financial liabilities:

      Deposits from banks	2,613,965	2,020,636	2,613,965	2,020,636
      Deposit from customers	25,304,908	20,423,736	25,304,908	20,423,736
      Other liabilities (excluding deferred income)	1,442,840	1,133,478	1,442,840	1,133,478

      Borrowed funds 1,797,507 2,159,847 1,797,507 2,159,847

      1. Cash

         The carrying amount of cash and balances with banks is a reasonable approximation of fair value

      2. Loans and advances to banks

         Loans and advances to banks include inter-bank placements and items in the course of collection. The carrying amount of floating rate placements and overnight deposits is a reasonable approximation of fair value. The estimated fair value of fixed interest bearing deposits is based on discounted cash flows using prevailing money-market interest rates for debts with similar credit risk and remaining maturity.

      3. Loans and advances to customers

         Loans and advances are net of charges for impairment. The estimated fair value of loans and advances represents the discounted amount of estimated future cash flows expected to be received. Expected cash flows are discounted at current market rates to determine fair value.

      4. Deposit from banks, due to customers and other deposits

         The estimated fair value of deposits with no stated maturity, which includes non-interest bearing deposits, is the amount repayable on demand.

         The estimated fair value of fixed interest-bearing deposits not quoted in an active market is based on discounted cash flows using interest rates for new debts with similar remaining maturity. For those notes where quoted market prices are not available, a discounted cash flow model is used based on a current yield curve appropriate for the remaining term to maturity.

      5. Other assets

         The bulk of these financial assets have short term (less than 12 months) maturities and their amounts are a reasonable approximation of fair value

      6. Other liabilities

         The carrying amount of financial liabilities in other liabilities is a reasonable approximation of fair value as these are short term in nature

      7. Borrowered funds

         FundsThe estimated fair value of borrowed funds represents the discounted amount of estimated future cash flows expected to be paid. Expected cash flows are discounted at current market rates to determine the fair value. This will take into account closest similar instruments with similar coupons and maturities where available.

   2. Fair value hierarchy

      IFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from

      independent sources; unobservable inputs reflect the Group's market assumptions. These two types of inputs have created the following fair value hierarchy:

      1. Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. This level includes listed equity securities and debt instruments on exchanges.

      2. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).

      3. Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs). This level includes equity investments and debt instruments with significant unobservable components.

      This hierarchy requires the use of observable market data when available. The Group considers relevant and observable market prices in its valuations where possible.

      31 December 2025 31 December 2024

      	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
      Treasury and other eligible bills	790,144	1,113,898	-	773,910	649,839	-
      Trading financial assets	219,430	-	-	62,789	-	-
      Derivative financial instruments	-	55,371	-	-	76,635	-
      Pledged assets	93,314	-	-	-	18,760
      Investment securities	1,572,203	6,399,953	165,425	1,515,646	3,876,155	114,833
      Total financial assets	2,675,091 7,569,222		165,425	2,352,345 4,621,389 114,833
      Derivative financial instruments	-	8,239	-	-	35,146 -
      Total financial liabilities	-	8,239	-	-	35,146 -

   3. Financial instrument classification

   31 December 2025	Amortised cost		FVTPL		FVTOCI - Debt Instruments	Equity Instruments at FVTPL	FVTOCI - Equity instruments	Liabilities at fair value through profit or loss		Liabilities at amortized cost		Total
   Assets
   Cash and balances with central banks	5,878,747		-		-	-	-		-	-		5,878,747
   Trading financial assets	-		219,430		-	-	-		-	-		219,430
   Derivative financial instruments	-		55,371		-	-	-		-	-		55,371
   Loans and advances to banks	2,887,458		-		-	-	-		-	-		2,887,458
   Loans and advances to customers	11,774,883		-		-	-	-		-	-		11,774,883
   Treasury bills and other eligible bills	375,198		-		1,904,042	-	-		-	-		2,279,240
   Investment securities - Equity instruments	-		-		-	496,011	165,425		-	-		661,436
   Investment securities - Debt instruments	697,043		-		7,476,145	-	-		-	-		8,173,188
   Pledged assets	-		-		93,314	-	-		-	-		93,314
   Other assets excluding prepayments and repossessed assets	1,053,288		-		-	-	-		-	-		1,053,288
   Total	22,666,617		274,801		9,473,501	496,011	165,425		-	-		33,076,355
   Liabilities
   Deposits from banks	-		-		-	-	-		-	2,613,965		2,613,965
   Deposit from customers	-		-		-	-	-		-	25,304,908		25,304,908
   Derivative financial instruments	-		-		-	-	-		-	-		-
   Borrowed funds	-		-		-	-	-		-	1,797,507		1,797,507
   Other liabilities, excluding non-financial liabilities	-		-		-	-	-		-	1,442,840		1,442,840
   Total	-		-		-	-	-		-	31,159,220		31,159,220

   31 December 2024 Amortised cost FVTPL

   FVTOCI - Debt

   Instruments

   Equity Instruments at FVTPL

   FVTOCI - Equity instruments

   Liabilities at fair value through profit or loss

   Liabilities at Total amortized cost

   Assets Cash and balances with central banks	5,095,969		-		-	-	-	-	-		5,095,969
   Trading financial assets	-		62,789		-	-	-	-	-		62,789
   Derivative financial instruments	-		76,635		-	-	-	-	-		76,635
   Loans and advances to banks	2,391,697		-		-	-	-	-	-		2,391,697
   Loans and advances to customers	9,906,819		-		-	-	-	-	-		9,906,819
   Treasury bills and other eligible bills	232,722		-		1,423,749	-	-	-	-		1,656,471
   Investment securities - Equity instruments	-		-		-	448,358	114,833	-	-		563,191
   Investment securities - Debt instruments	1,391,106		-		4,943,443	-	-	-	-		6,334,549
   Pledged assets	-		-		18,760	-	-	-	-		18,760
   Other assets excluding prepayments and repossessed assets	697,690		-		-	-	-	-	-		697,690
   Total	19,716,003		139,424		6,385,952	448,358	114,833	-	-		26,804,570
   Liabilities Deposits from banks	-		-		-	-	-	-	2,020,636		2,020,636
   Deposit from customers	-		-		-	-	-	-	20,423,736		20,423,736
   Derivative financial instruments	-		-		-	-	-	35,146	-		35,146
   Borrowed funds	-		-		-	-	-	-	2,159,847		2,159,847
   Other liabilities, excluding non-financial liabilities	-		-		-	-	-	-	1,133,478		1,133,478
   Total	-		-		-	-	-	35,146	25,737,697		25,772,843

   Ecobank Transnational Incorporated Consolidated financial statements As at 31 December 2025

   Notes

   (All amounts in thousands of US dollar unless otherwise stated)

3. Financial Capital Management

The Group's capital management objectives are:

• To comply with the capital requirements set by regulators in the markets where the Group's entities operate and safeguard the Group's ability to continue as a going concern;

• To maintain a strong capital base that supports the development of the business; and

• To sustain a sufficient level of returns for the Group's shareholders.

On a consolidated basis, the Group is required to comply with Basel II/III capital requirements set by the BCEAO for banks headquartered in the UEMOA zone. On a standalone basis, banking subsidiaries are required to maintain minimum capital levels and minimum capital adequacy ratios which are determined by their national or regional regulators.

The Group's capital is divided into two tiers:

• Tier 1 capital: share capital (net of treasury shares), retained earnings, reserves created by appropriations of retained earnings, and non-controlling interests allowed as Tier 1 capital by the regulator. Certain intangibles and goodwill are deducted in calculating Tier 1 capital; and

• Tier 2 capital: subordinated debt and other loss-absorbing instruments, certain revaluation reserves, and noncontrolling interests allowed as Tier 2 capital by the regulator.

Risk-weighted assets are calculated in accordance with regulatory guidelines. Credit risk-weighted assets are measured by applying a hierarchy of risk weights related to the nature of the risks associated with each of the Group's on- and off-balance sheet asset classes. Operational risk weighted assets are calculated by applying a scaling factor to the Group's average gross income over the last three years. Market risk-weighted assets are calculated by applying factors to the Group's trading exposures to foreign currencies, interest rates, and prices.

The Group has remained compliant with the UEMOA minimum regulatory capital adequacy ratios for Regionally systemically important banks (8.5 % CET1 CAR, 9.5% Tier 1 CAR, and 12.5% for Total CAR). The Regulatory capital ratios are submitted to our regulator every six months.The most recently approved Regulatory capital ratios are disclosed in the financial statements. The 31 December 2025 regulatory capital ratio is pending approval as of the date of these financial statements.

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Ecobank Transnational Incorporated Consolidated financial statements

For the period ended 31 December 2025 Notes

(All amounts in thousands of US dollar unless otherwise stated)

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Page 39 Consolidated financial statements - 31 December 2025

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