Mr. Arnold Ekpe
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14th June, 2010
ECOBANK Ghana Receives Thumbs Up
Ecobank Ghana, in spite of the global economic and financial crisis, last year contributed significantly to the Ecobank Group profit in the West African sub-region.
The bank last year contributed 89 per cent of the West African region profit and 23 per cent of the overall group profit.
Evelyne Tall, Regional Head for the West Africa Region, answering questions at a press conference held here on Friday shortly after the 22nd Annual General Meeting of Ecobank Transnational Incorporated (ETI), parent company of the Ecobank Group, said Ecobank Ghana continues to play a crucial role in the group’s performance last year.
“I’ll urge the management of Ecobank Ghana to continue with their good work to ensure the overall growth of the group,” she said.
ETI operates in Ghana, Nigeria, Liberia, Sierra Leone and Gambia.
She said despite the economic meltdown the performance of the West African Sub-region was resilient.
“Customer deposits rose 25 per cent to $1,024 million, resulting in total assets growth of 28 per cent to $1,451 million,” she said.
Ms. Tall said lending was, however, restrained resulting in the marginal increase of customer loans amounting to $467 million.
Mr. Arnold Ekpe, Group Chief Executive, said the group’s net revenue grew by 6 per cent to US$873.3 million last year, with strong performances noted across most of its subsidiaries.
He however said profit levels were stunted by a challenging year, characterised by a difficult credit environment.
As a result, he said Ecobank registered a net income of US$64.6 million last year as against $111.1 million recorded in 2008.
He attributed the drop to the depreciation in major currencies, start-up costs for newly established subsidiaries, restructuring costs for newly acquired subsidiaries, and impairment provisions, particularly in Nigeria.
Furthermore, the overall slowdown in African economies, arising from the global economic and financial crisis, impacted negatively on the group’s results.
“2009 was a challenging year for the group. Although we grew the business and our pan-African footprint, revenues and profits were adversely affected by a combination of factors including depreciation of our major operating currencies and an increase in net credit loss provisions,” he said.
During 2009 Ecobank added Zambia, Uganda, Gabon, and France, to its already diversified platform and grew its distribution network to 746 branches from 610 branches in 2008.
Mr. Ekpe said the bank’s geographical expansion phase was now coming to an end, adding that the focus in 2010 will be on consolidating and optimising operations and leveraging on the diversified platform the group has built over the years.
To further maintain and consolidate its position, he said the bank had made arrangement to raise additional capital this year.
Mr. Kolapa Lawson, Group Chairman, earlier at the AGM announced a 50 per cent increase in dividend for shareholders.
On the outlook for this year, he said the bank would continue with its emphasis on revenue generation, cost containment and efficiency improvements.
The bank last year contributed 89 per cent of the West African region profit and 23 per cent of the overall group profit.
Evelyne Tall, Regional Head for the West Africa Region, answering questions at a press conference held here on Friday shortly after the 22nd Annual General Meeting of Ecobank Transnational Incorporated (ETI), parent company of the Ecobank Group, said Ecobank Ghana continues to play a crucial role in the group’s performance last year.
“I’ll urge the management of Ecobank Ghana to continue with their good work to ensure the overall growth of the group,” she said.
ETI operates in Ghana, Nigeria, Liberia, Sierra Leone and Gambia.
She said despite the economic meltdown the performance of the West African Sub-region was resilient.
“Customer deposits rose 25 per cent to $1,024 million, resulting in total assets growth of 28 per cent to $1,451 million,” she said.
Ms. Tall said lending was, however, restrained resulting in the marginal increase of customer loans amounting to $467 million.
Mr. Arnold Ekpe, Group Chief Executive, said the group’s net revenue grew by 6 per cent to US$873.3 million last year, with strong performances noted across most of its subsidiaries.
He however said profit levels were stunted by a challenging year, characterised by a difficult credit environment.
As a result, he said Ecobank registered a net income of US$64.6 million last year as against $111.1 million recorded in 2008.
He attributed the drop to the depreciation in major currencies, start-up costs for newly established subsidiaries, restructuring costs for newly acquired subsidiaries, and impairment provisions, particularly in Nigeria.
Furthermore, the overall slowdown in African economies, arising from the global economic and financial crisis, impacted negatively on the group’s results.
“2009 was a challenging year for the group. Although we grew the business and our pan-African footprint, revenues and profits were adversely affected by a combination of factors including depreciation of our major operating currencies and an increase in net credit loss provisions,” he said.
During 2009 Ecobank added Zambia, Uganda, Gabon, and France, to its already diversified platform and grew its distribution network to 746 branches from 610 branches in 2008.
Mr. Ekpe said the bank’s geographical expansion phase was now coming to an end, adding that the focus in 2010 will be on consolidating and optimising operations and leveraging on the diversified platform the group has built over the years.
To further maintain and consolidate its position, he said the bank had made arrangement to raise additional capital this year.
Mr. Kolapa Lawson, Group Chairman, earlier at the AGM announced a 50 per cent increase in dividend for shareholders.
On the outlook for this year, he said the bank would continue with its emphasis on revenue generation, cost containment and efficiency improvements.
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