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Tag: Ecobank

  • BoI, Ecobank sign pact on SMEs

    BoI, Ecobank sign pact on SMEs

    Bank of Industry (BoI) has signed a memorandum of understanding (MoU) with Ecobank Nigeria to provide loans at low interest rate to the Small and Medium Enterprises (SMEs)sub-sector.

    Managing Director/Chief Executive, BoI, Mr. Rasheed Olaoluwa, while speaking at the event in Lagos, said Ecobank and nine other banks in the country were selected based on their support to the SMEs, adding that the low interest rate will heighten activities in the sub-sector.

    According to the MoU, the 10 banks would provide working capital loans to SMEs qualified by the BoI at interest rate of Monetary Policy Rate (MPR) plus six per cent, with tenor ranging from six months to 12 months.  The BoI on the other hand would provide Term Loans to the qualified SMEs at between nine and ten per cent rate with tenor ranging from three to five years, and moratorium of six to 12 months.

    Deputy Managing Director, Ecobank Nigeria, Tony Okpanachi, explained that the selection of Ecobank by BoI was in recognition of the massive support the bank has offered the sub-sector over time.  He observed that the support has won the Ecobank several awards and recognitions in recent times.

  • Ecobank Giant Prize promo gets new winners

    Ecobank Giant Prize promo gets new winners

    Some Ecobank Nigeria Limited customers have won various prizes in the lender’s ongoing Giant Prize Giveaway promo.

    The lender’s second draw held in Abuja saw some customers winning inverters, IPAD Air, Samsung smart Phones; air-conditioners, generating sets, LED Televisions, mobile phones and washing machines.

    Some of the winners are Emeka Chiamaka Mercy, Bosso Road branch, Minna, (generating set); Okojie Clara Ede, Nkwegu Plaza branch, Abuja, (generating set); Dogonyaro Rebecca, Sanni Sami Way branch, Zuru-Kebbi, (generating set); Mani Ubadi, Talata Mafara branch, Sokoto, (generating set) among others.

    One of the winners, Okoroafor Benjamin who was presented with an LED TV at the event thanked the bank for the gesture, stating that he was attracted to do business with the lender because of its excellent customer relations.

    Abdullahi Abubakar, a winner of an Inverter, who operates an account in Gusau Branch, Zamfara State, when contacted on telephone said Ecobank has shown overtime that it is customer-centric bank, He prayed for the continuous progress of the bank.

    Executive Director, FCT/North, Ecobank Nigeria, Mr. Shehu Jafiya, said the promo is part of the bank’s tradition of rewarding its customers for their patronage. He emphasized that Ecobank’s will continue to surpass customers’ expectations in service delivery.

    He said that to qualify for classic or the advantage category, customers should have a minimum balance of N10, 000 and N50, 000 respectively, stressing that the more a customer saves the more chances to win any of the prizes.

    Senior Manager, National Lottery Regulatory Commission (NLRC), Mr. Kayode Ojoogun, said the process for selecting the winners in the promo meets their standard.

  • DMO to sell N65b sovereign bonds Wednesday

    •Ecobank eyes $250m

    The Debt Management Office (DMO) plans to sell N65 billion worth of sovereign bonds  on Wednesday, December 17.

    It said it would sell N10 billion in three-year paper, N30 billion in 10-year paper and N25 billion in 20-year tenor.

    All the bonds are a re-opening of the previously issued paper and the result of the auction is expected to be published a day after the auction.

    Meanwhile, Ecobank Transnational Inc. (ETI) will sell equity in the first quarter of next year as it seeks to meet regulatory capital requirements for its Nigerian unit.

    “The bank is looking at raising something in the neighborhood of $250 million before the end of March by private placement. Basel III liquidity regulations call for “huge capital and we have to meet the requirement,” its Chairman Emmanuel Ikazoboh told Bloomberg.

    The Central Bank of Nigeria (CBN) in August  ordered largest lenders to boost minimum capital ratios to 16 per cent by March, next year compared with a previous benchmark of 11 per cent. The government is preparing to implement Basel III requirements next year and increase the resilience of banks, five years after saving the industry from collapse.

    ETI, which operates in 36 African countries from its base in Lome, Togo, “will increase its issued capital and sell 25 per cent to Nigerian investors to meet the regulatory capital,” Ikazoboh said.

    “Capital adequacy of the bank will rise to over 16 per cent from between 11 and 12 per cent at present,” he added.

  • Ecobank wins award

    Ecobank wins award

    Ecobank Nigeria has been named SME Excellence Award winner at the Nigerian SME Awards hosted by the SME Business Platform.

    It is a forum for Micro, Small and Medium Enterprises (MSMEs).

    Ecobank’s Head, SME and Value Chain Banking,  Sunkanmi Olowo, thanked the organisers the gesture.

    According to him, access to finance has been identified as a key growth factor in the development of MSMEs.

    He reiterated that MSMEs are known as the major drivers of economies and it is on this premise that Ecobank based its commitment to financing and supporting this budding sector in Nigeria.

    According to him, Ecobank is noted for MSME’s financing. He said this year, the bank has embarked on various initiatives that support growth in some key sectors that includes agriculture, import business finance, amongst others.

    On how Ecobank relates with the MSMEs, Olowo  said the lender has adopted a “risk sharing asset creation”, that enables  the financing of businesses with less stringent collateral requirements and  renewable energy financing.

    The bank had, in collaboration with the USAID, UNDP and several other multilateral organisations, initiated various schemes to develop the renewable energy sector.

    The bank has also proposed the launch of an SME club that would provide necessary advice and other financial tools and non-bank support services to support and grow SMEs.

    Ecobank was recognised as the number three bank in strong SME’s lending, and number four in transactional banking for SMEs.

  • Ecobank may sell stake in Nigerian unit

    Ecobank may sell stake in Nigerian unit

    Ecobank Transnational Inc. is considering selling  a stake in its Nigerian subsidiary as part of a plan to raise about $500 million of equity for the unit.

    “It’s possible that could happen,” Chief Executive Officer Albert Essien said about selling part of Ecobank Nigeria. He spoke by phone yesterday from Abidjan, Ivory Coast’s commercial capital. “There’s a board policy that we could, if we wanted, sell down and hold 75 percent in our subsidiaries.”

    ETI, which operates in 36 African countries, needs to increase the capital of Ecobank Nigeria, its biggest subsidiary, by March next year to meet new rules from the Central Bank of Nigeria. A $500 million boost would take its capital-adequacy ratio to about 18 percent, above the minimum requirement of 16 percent, Jibril Aku, the managing director of Ecobank Nigeria Ltd., said

    Bloomberg said ETI has transferred to Ecobank Nigeria the “larger portion” of the $206 million in cash it received in October when South Africa’s Nedbank Group Ltd. bought a 20 per cent stake in ETI, Essien said. The rest of Ecobank Nigeria’s capital needs will come from retained earnings and a “private placement” of equity, he said.

    Nedbank and Qatar National Bank SAQ, the second-biggest owner of ETI with a 17 per cent stake, haven’t been approached about buying a stake in Ecobank Nigeria, said Essien. Nedbank parent Old Mutual Plc said it earmarked 4.3 billion rand ($393 million) for African acquisitions. The Johannesburg-based insurer has identified Nigeria, Kenya and Ghana as key markets.

    Ecobank Nigeria, which had $9.6 billion of assets at the end of September, is the country’s seventh-biggest lender. It made a $157 million post-tax profit in the first nine months, up 79 percent from a year earlier, according to a presentation posted on ETI’s website. The rest of the money from Nedbank’s acquisition has been put toward other subsidiaries, including Ecobank Kenya, Essien said.

    “We know that some might need capital down the line,” he said in a separate interview in Abidjan yesterday. “They do for regulatory purposes and sometimes for business purposes.”

    ETI’s rules prevent any institution from buying more than 24.99 percent of its shares and it prefers none to hold more than 20 percent to ensure a broad shareholder base, said Essien. “The policy of keeping everybody at 20 percent is for diversification of shareholding,” he said by phone.

    ETI has a $23 billion balance sheet and its stock trades in Ghana, Ivory Coast and Nigeria. Its shares fell 1.2 percent to 17 naira yesterday, giving it a market capitalization of N384 billion ($2.2 billion).

  • Ecobank inaugurates Western Union money transfer

    Ecobank inaugurates Western Union money transfer

    Ecobank has commenced Western Union outbound money transfer service in the country. The newly launched service allows customers to send money abroad through any of the over 500 branches of Ecobank Nigeria, while the funds are received in the specified currency in the receiving country.

    This initiative follows the recent introduction of the revised guidelines for International Money Transfer Services by the Central Bank of Nigeria (CBN), which allows provision of outbound money transfer services in Nigeria.

    The outbound service is a provision that allows money to be sent from Nigeria to other countries, while respecting both Western Union and Country Policies. This means that Ecobank branches on behalf of their customers are able to log into the Western Union application and send money to other countries where the beneficiary shall pick the money.

    A prospective customer, who wishes to use the service, would pay the naira equivalent (plus applicable charges) to Ecobank as an agent of Western Union for the foreign currency that would be paid to the specified beneficiary in the destination country.

    Deputy Managing Director, Ecobank Nigeria, Anthony Okpanachi, commended the CBN for the revised guidelines on International Money Transfer Services in the country. According to Mr. Okpanachi the service would further enhance financial inclusion for Nigerians, especially those who are yet to embrace banking services.

  • Ecobank battles Malaria with cash

    Ecobank battles Malaria with cash

    Ecobank has donated malaria prevention kits worth several millions of naira to various schools and healthcare centres in rural communities across Nigeria being part of activities to mark “Ecobank Day”, observed simultaneously in 36 African countries where Ecobank is present.

    Ecobank Day which is an annual event, is a community action day set aside for the bank staff to directly engage with and render service to the community.

    In a statement, the lender said the 2014 edition with the theme: Malaria Prevention and Control in Sub-Saharan Africa saw Ecobank Nigeria staff offering the malaria prevention supplies that include easy to use SD Malaria Testing Kits, Mosquito Treated Nets and Mosquito Repellant Creams to pupils and officials in nine schools and nine basic healthcare centres across the geo-political zones of the country .

    Some of the healthcare centres and schools visited include St Kizito Clinic,  Jakande Estate Lekki Lagos; Cherubim & Seraphim Primary School, Majidun, Ikorodu Lagos among others.

    Managing Director, Ecobank Nigeria, Mr. Jibril Aku explained that the choice of this year’s theme is pertinent as malaria prevention will help save the lives of people especially children in rural communities who lack access to basic healthcare. This, he maintained, supported the bank’s vision to build a world class bank that will contribute to the economic development and financial integration of Africa.

    He said the lender has grown from a very modest beginning to become the bank with the widest footprint on the African continent and it is essential that Ecobank gives back.

  • Ecobank, Africa SME Champions partner

    The Ecobank Group and the Africa SME Champions Forum have partnered other co-organisers like the African Guarantee Fund and AfricSearch to ensure a successful hosting of over 300 Small and Medium Enterprises (SME) in Dakar, Senegal.

    The meeting was an avenue for over 300 ambitious SME companies in Africa who are interested in growing their businesses.

    The forum which the bank said creates an opportunity to identify Africa’s next great success stories, is the first direct access platform to finance for the SMEs. It is also providing them the opportunities to enjoy master classes, customised consultancy service that brings together high-quality experts and a mentoring programme.

    According to the organisers, the idea of the SME forum is to bring together at a single location an entire range of tools, networks and services dedicated to SMEs to allow them to put in place, on their return, the methods shared by the community of the Africa SME Champions Forum.

    Deputy Managing Director, Ecobank Nigeria Tony Okpanachi said the inaccessibility of finance is a major obstacle to small business growth and development, with only 20 per cent of African SMEs receiving a credit line from financial institutions.

    He emphasised that “this forum aims to assist viable SMEs by providing them opportunity for easy financing. The partnership reaffirms Ecobank’s commitment to support small and medium-sized businesses and further enable the SME sector play a critical role in the socio-economic development of Africa.

  • Ecobank grows Q3 net profit by 31% to N52b

    Ecobank Transnational Incorporated (ETI) Plc recorded impressive bottom-line in the third quarter as net profit rose by 31 per cent to about N52.5 billion.

    Key extracts of the interim report and accounts of ETI for the nine-month period ended September 30, 2014 showed that the financial holding company grew its top-line by 16 per cent to N207.75 billion in third quarter 2014 while interest income rose by about 11 per cent to N187.67 billion. Profit after tax rose to N52.49 billion in 2014 as against N39.96 billion in comparable period of 2013.

    Further analysis showed that the company’s cost to income ratio reduced to 66.56 per cent in 2014 from 71.20 per cent in 2013. Additionally, net margin moved to 19.51 per cent as against 17.23 per cent in previous year. Ecobank was aggressive about lending as its loans to deposit ratio jumped to 71.63 per cent from 66.80 per cent while loans and advances were up by 16.55 per cent to N1.97 trillion in third quarter 2014 as against N1.69 trillion by third quarter 2013.

    Deposit from customers also rose by 8.69 per cent to N2.75 trillion as against N2.53 trillion in comparable period of 2013. Total assets rose by 10.69 per cent to N3.83 trillion in 2014 compared with N3.46 trillion in 2013.

    Group chief executive officer, Ecobank Transnational Incorporated (ETI) Plc, Albert Essien, said the company’s strong results for the first nine months of 2014 showed solid revenue growth and a further reduction in our cost-income ratio.

    According to him, the sustained improvement in the company’s Nigeria business, the largest of its 36 countries in Africa, and another strong treasury performance, helped to increase earnings per share by 26 percent.

    Essien noted that the company’s capital position was significantly enhanced recently, with the conversion of $75 million of loans by IFC funds in the third quarter and Nedbank’s subsequent investment of $493 million to reach a 20 per cent shareholding in ETI.

    “The management team and board remain optimistic but vigilant going into the fourth quarter given the macroeconomic and other challenges in some of our countries where we have operations.  We pay particular tribute to the dedication and professionalism of our staff in countries affected by the current Ebola epidemic as they work to serve our clients in very difficult circumstances,” Essien said.

  • Why customers need Rapid Transfer, by Ecobank’s DMD

    Why customers need Rapid Transfer, by Ecobank’s DMD

    Ecobank’s Rapid Transfer product is breaking grounds, thus enabling money transfer across geographical boundaries and bridging the gap between families and friend across Nigeria and Africa.

    Speaking during a media briefing in Lagos, the bank’s chief explained that for traders and non-resident nationals all over the African continent, Funds Transfer, a well thought-out financial product, provides a platform to remit money with ease.

    “It is the fastest, most secure, convenient and reliable medium to transfer and receive money both across Nigeria and in thirty five other African countries where Ecobank operates,” he said.

    Okpanachi said the product is primarily designed to provide a quick payment solution for economic operators across the region with a view to facilitating economic integration. The product will on the long run, progressively migrate regional transactions from the informal sector to the formal sector, thus signaling economic development and transformation.

    He spoke on the backdrop of end of year money transfer solutions for bank customers in the country. The DMD said the product is available to all categories of people such as workers, parents/guardians, students, small business owners who are the predominant players in the informal sector, traders, religious organisations and travelers within Africa.

    He reiterated that Rapid Transfer which comes in different dimensions presents a total package for the customer as transfers could be in the form of Cash to Cash; Cash to Account; Account to Cash; Account to Account and Cash Pull.

    The product is structured in such a way that it accommodates both account holders and walk-in customers. While customers of the bank could make transactions to the limit of N1.5 million per customer (or an equivalent of $10, 000 at prevailing exchange rate), walk-in customers, that is non-Account Holders have a limit of N500,000 after presenting a suitable identification.

    Customers and non-account holders have a maximum of three transactions per week and all transactions are done in the local currencies of the countries involved. Funds received are made available for payment to the receiver at any Ecobank branch within a 5 minutes except in countries where remittance laws differ on this rule.