Posted by By SEUN ADESIDA on
Ecobank Transnational Incorporate (ETI), Africa's only multinational banking institution, has recorded an asset base in excess of $6.6 billion (N779 billion) following an impressive end of year results for 2007 released recently.
Ecobank Transnational Incorporate (ETI), Africa's only multinational banking institution, has recorded an asset base in excess of $6.6 billion (N779 billion) following an impressive end of year results for 2007 released recently. According to the results, total assets of the bank grew by 87 per cent to US$6.6 billion, while gross revenues before interest expenses increased by 66% per cent to US$697 million (N82.24 billion).
Profit before tax and other exceptional items leaped from US$129 million (N15.22 billion) recorded in 2006 to US$191 million (22.53 billion), representing a 47 per cent increase. The group, which maintains its accounts in US dollars, said the results are in accordance with International Financial Reporting Standards (IFRS) which make Ecobank probably the only institution in its regions to meet this benchmark.
Reacting to the results, Ecobank Group Chairman, Mand Sidib, said the bank is particularly proud of the results, as it testifies to the growing strength of the institution, which currently has presence in 22 African countries. In his words, 'the figures represent the best reward for the good work and great dedication of Ecobank staff and management in achieving our goal of building a world class African banking group."
Also speaking, Arnold Ekpe, Chief Executive Officer of the Ecobank Group, said the results confirm that the group has taken the right strategic direction in recent years. According to him, the bank is well positioned and committed to deliver further growth in 2008, an important year for the bank as it celebrates its 20th anniversary of operations.
In 2007, the Ecobank Group, through its Nigerian affiliate, Ecobank Nigeria Plc, acquired Hallmark Bank through the purchase and assumption system introduced by the Nigerian Deposit Insurance Corporation for healthy banks to acquire assets and deposit liabilities of banks that failed to meet up the consolidation benchmark introduced by the Central Bank of Nigeria in 2005.
The group also took a majority control of two banks in Central African Republic (BICA) and Rwanda (BDCI).
This is in addition to its opening of new subsidiaries in Gambia, Guinea Bissau and Sao Tome and Principe. The total branch network of the multinational bank grew from 305 to over 450 branches during the year. Ecobank championed the introduction of several innovative products into the financial services industry in 2007. These include the prepaid multicurrency debit card that allows customers withdraw local currencies in the different African countries with just one debit card. The bank also pioneered the local currency credit cards in Ghana and Nigeria.
The Ecobank Group also in 2007 launched a microfinance bank in Nigeria, in partnership with Accion and other Nigerian banks. The Group also have a growing regional investment banking business and is building the first-ever shared services centre in West Africa, located in Accra, Ghana.
Following the impressive standing Ecobank was voted Bank of the Year in Africa in 2007 by the largest Anglophone pan African press, IC Publications based in London. The bank is also rated among the top 900 in the world.