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Ecobank Transnational Incorporated (ETI) - the parent company of Ecobank Nigeria Plc has posted a post-tax profit of $40.4 million for the year ended December 31, 2004, indicating an increase of 34 per cent over the $30.2 million of the previous year.
* Targets 5 other African countries
Ecobank Transnational Incorporated (ETI) - the parent company of Ecobank Nigeria Plc has posted a post-tax profit of $40.4 million for the year ended December 31, 2004, indicating an increase of 34 per cent over the $30.2 million of the previous year.
The bank, which already operates through its subsidiaries in 13 African countries has also indicated interest to extend its operations to about 5 other African countries namely, Chad, Equatorial Guinea, Guinea Bissau, Sao Tome and Angola.
Chairman, ETI, Chief Philip Asiodu, who made these disclosures Friday in Lagos during the bank's 17th Annual General Meeting (AGM), told shareholders that Ecobank recorded a growth in all her performance indices.
While operating income also grew by some 32.6 per cent, from $156.6 million to $207. 8 million, pre-tax profit advanced by 24.4 per cent, from $48.36 million to $60.3 million, deposits swelled by 27 per cent, from $1.15 billion to $1.46 billion, while total assets leapt by 38.4 per cent, from $1.38 billion to $1.9 billion.
Similarly, shareholders' equity moved up by 22 per cent, from $105.5 million to $128.54 million, total liabilities and shareholders' equity rose by 25.4 per cent, from $1.52 billion to $1.91 billion, while earnings per share increased by 20.5 per cent, from 39 cents to 47 cents.
Noting that 2004 was another good year for Ecobank, he said the bank delivered record profits for the second consecutive year.
'This performance demonstrates the strength of our strategy and the determination of the Ecobank people to ensure its consistent delivery notwithstanding the conditions," he said.
The chairman noted that 'despite the many challenges, including the situation in Cote d'Ivoire which did not augur well for normal operations, we are able to achieve strong earnings growth from our businesses." This he added, provides additional proof of the strength of the bank's network.
He maintained that the board and the management of ETI are confident that through the continued implementation of a strategic plan, the bank can make a difference in the market and create increasing value for shareholders.
'We will continue to focus on our core businesses in our core businesses in our existing markets. This, we believe will offer significant growth opportunities over the coming years. We will also take advantage of the strength of our franchise in these markets and the growth opportunities they will provide," he assured.
Shareholders stressed the need for ETI to provide all the funds required to make Ecobank Nigeria Plc comply with the N25 billion minimum capitalisation so as to leave the Ecobank franchise in Nigeria undiluted.
Ecobank Nigeria had a couple of weeks ago signed a Memorandum of Understanding (MoU) with Chartered Bank Plc with a view to comply with the minimum capitalization. The two institutions mutually reached a consensus that the emerging bank be known as Chartered Ecobank, which is a subsidiary of the ETI.
Responding, Asiodu told the shareholders that decision not to provide the entire funds for Ecobank Nigeria's capitalisation was in the best interest of shareholders, since the ETI would still require funds to finance its expansion programmes.
He nevertheless promised to get back to shareholders before the final consolidation process of Ecobank Nigeria is completed, assuring that whatever decisions taken by the board would be in the shareholders interest.