Ecobank ends Africa expansion spread
Ecobank Transnational Incorporated (ETI) has ended its advance spread across the continent and plans to consolidate on the existing operations in 36 countries.
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Outgoing Chief Executive Officer of Ecobank, Mr Albert Essien, said on the sidelines of the group’s 27th Annual General Meeting in Dar es Salaam, Tanzania, that the strategy of the bank had changed a bit to get more efficiency in the bank’s operations.
This, he said, was to deliver more revenue to the bottom line and get more value for the shareholders.
“We are not going to flag any more branches in different countries just because we want to be there, we will concentrate on the existing branches and have a more sustainable profit,” Mr Essien said.
‘’We are in Ethiopia and Angola but it is not urgent for us to commence full banking operations, it’s a representative office and when the time comes, the board will give the go-ahead to start full banking operations. Ethiopia is a good country and we are treading cautiously in Angola to complete our 36 operations. But we will continue with our country expansion which will either be branch or digital expansion. The digital expansion is to mimic the success of the Ecobank Ghana digital branch at Labone in Accra.
Our diversified pan-African business model continues to serve us well, with encouraging underlying performance in our line of businesses and geographic areas of coverage. We are pleased with our cost efficiency gains, which led to our cost-income ratio improving in 2014 to 65.4 per cent from 70.1 per cent,” Mr Essien added.
Shareholders approve performance
Shareholders approve the company’s strong performance for the year ended 31 December 2014, though the board did not declare dividend for the year.
Group Chairman of Ecobank, Mr Emmanuel Ikazoboh, said insufficient earnings at the group level have required the board to make a difficult decision regarding the payment of a cash dividend which had not been taken lightly.
At the end of the year, the Pan African bank posted $24.2 billion in total assets and US$2.7 billion in total equity.
Shareholders approved the company’s accounts for 2014 and the appropriation of profit of $5.82 million for the year. A sum of $0.87 million was transferred to special reserves and $4.85 million to retained earnings.
“Our accounts for 2014 have shown a resurgent Ecobank, which enjoys the confidence of all its stakeholders: shareholders gathered here, customers and its dedicated staff. We can expect similar positive performance for 2015,” Mr Emmanuel Ikazoboh said.
The meeting also approved the issue of bonus shares, out of retained earnings, of one ordinary share for every 15 ordinary shares held on the closure of the company’s share register in accordance with the rules of the stock exchanges on which Ecobank’s shares are listed.
The new shares issued will rank equally with existing ordinary shares of the company.
The meeting authorised the board of directors to determine the modalities for the issue as it deems appropriate.
“Going forward, the board is committed to reinstating the cash dividends as soon as possible”, he said.
Reappointment of directors
Mr Bashir Ifo, a director representing the ECOWAS Bank for Investment and Development, who completed his term of office, was reappointed for another three-year term.
Shareholders also ratified the co-option of Ms Dolika Banda, Mr Graham Dempster and Ms Sheila Mmbijjewe as directors for a term of three years respectively.
Mr Alain Francis Nkontchou was also elected as a director on the board for a three-year term.
The firms Akintola-Williams Deloitte Nigeria and Grant Thornton, Côte d’Ivoire, were appointed as Joint Auditors for a one-year term.
Mr Essien’s contributions
Shareholders recognised the invaluable contributions of Essien, who, having reached the company’s mandatory retirement age of 60, retires from the company on June 30 after 25 years of meritorious service.