The Nation Newspaper

Tag: Ecobank

  • Governance audit: Ecobank to reconstitute board, Memart

    Governance audit: Ecobank to reconstitute board, Memart

    Ecobank Transnational Incorporated (ETI) Plc plans to reshuffle its board and amend its articles of association as part of extensive review of its corporate governance framework.

    Securities and Exchange Commission (SEC) had advised ETI to undertake comprehensive overhaul of its corporate governance after an investigative corporate governance audit by the apex capital market regulator identified worrisome gaps in corporate governance at ETI.

    SEC had stated that ETI needs to develop a one-year remedial plan with specific measures to address the specific governance gaps. ETI will also need to convene an extraordinary general meeting of shareholders to pass major resolutions on several proposals relating to these.

    The board of ETI at the weekend indicated that shareholders would meet next month to deliberate and adopt the action plan to implement the recommendations of SEC.

    According to regulatory filing made available at the weekend, the extraordinary meeting will reconstitute the board of directors of the financial services-holding company and also made major amendments to the company’s articles of association with regards to the number, tenure and meeting of directors.

    Specifically, the meeting will amend the articles of association to reduce the maximum size of the board of directors, set limitation of the tenure of directors and revise the quorum for meetings of the board of directors.

    Besides, the company is expected to include in its articles of association provisions on mergers, acquisitions and disposals.

    Shareholders are also expected to adopt a new resolution on capital raising as the company seeks to consolidate its pan-Africa operations.

    Meanwhile, the Nigerian stock market rode on a topsy-turvy market situation to close last week with a week-on-week average gain of 0.50 per cent. With 46 gainers to 39 losers, the main index at the Nigerian Stock Exchange (NSE)-the All Share Index (ASI), rose slightly from the week’s index-on-board of 40,571.62 points to close at 40,773.50 points.

    Aggregate market value of all quoted equities, which had opened the week at N13.005 trillion, closed at the weekend at N13.070 trillion. The performance of the market was boosted by modest gains in the insurance and oil and gas sectors as well as select highly capitalised stocks. The NSE 30 Index, which tracks the 30 most capitalised stocks on the NSE, recorded a marginal week-on-week gain of 0.03 per cent. The NSE Insurance Index also rallied 2.32 per cent while NSE Oil and Gas Index recorded the highest gain of 7.0 per cent.

    However, the NSE Consumer Goods Index indicated a drop of 0.35 per cent. The NSE Banking Index slipped by 1.64 per cent while the NSE Industrial Goods Index declined by 0.38 per cent.

     

  • Ecobank promotes 400 staff

    Ecobank Nigeria has promoted over 400 staff. This is about 10 per cent of the workers.

    In a statement, the bank said the exercise was in line with its commitment to its policy of rewarding excellence and performance.

    The staff were selected through an appraisal.

    The Managing Director of the bank, Mr. Jibril Aku, said the promotion was to keep the desired level of excellence to “maintain service quality standards, uphold customer satisfaction and enhance brand experience”.

    He said Ecobank maintains a high professional culture where exceptional performance, innovativeness and hard work are recognised and rewarded.

     

  • Ecobank Capital raises $500m pre-export facility

    Ecobank Capital, the investment banking arm of Ecobank Group, has raised for Orion Oil Ltd, $500 million.

    In a statement, the bank said the fund would be used for the prepayment of crude oil cargos to be supplied by Société Nationale des Pétroles du Congo.

    The facility comprises a dollar denominated $342 million tranche and a XAF denominated $158 million tranche.

    Ecobank Capital acted as the Mandated Lead Arranger, working with United Bank for Africa Plc as co-arranging bank. Participating lenders were Afreximbank, BGFIBank Group, UBA Group, Banque Atlantique Group and the Ecobank Group.

    Acting Managing Director of Ecobank Capital, Ikenna Onyejiaka said: “This landmark transaction underscores Ecobank Capital’s capabilities as a Lead Arranger of syndicated loans, working with Africa’s key financial institutions to provide vital support to Congo’s economic growth, especially at a time when the Eurozone crisis is threatening African businesses’ access to international markets.”

    Executive Director of Ecobank Nigeria, Foluke Aboderin, said the bank was proud to be associated with Orion Oil Limited. “We are indeed excited to have participated in the $500 million transaction. For us at Ecobank, this transaction is undeniably strategic and represents what we are about – leveraging on our large footprint across middle Africa to support viable business for the development of our continent,” he said.

    Managing Director of UBA Cameroon, Georges Wega, said: “UBA Group’s strong participation in this deal underscores our passion to support African businesses and develop the economies of the continent. We look forward to doing more with more African businesses.”

  • Ecobank launches new Western Union Money Transfer

    Ecobank Nigeria has launched a new service on its retail internet banking platform, named Western Union Account Based Money Transfer service (WUABMT).

    In a statement, the bank said the product allows customers to receive money through Western Union online daily.

    The bank said customers will receive money from 510, 000 Western Union agent locations worldwide directly to their Ecobank account in Nigeria.

    “Western Union just got more convenient at Ecobank,” it said, adding that customers working outside their home countries, can send funds to their own Ecobank account through Western Union, by simply logging in to Internet banking on the bank’s platform and simply transfer the funds to their account with the bank.

    The bank’s Head, Assets and Liability Products, Domestic Banking, Adeola Dare said the electronic service will boost the successful partnership between the lender and Western Union across Africa.

    “It resonates’ a commitment to providing reliable and convenient world-class money transfer service for Africans where ever they might be,” he said.

  • Ecobank rewards customers

    Ecobank Nigeria has started a promo tagged, Giant prize give away to reward its customers.

    In a statement, the bank said the promo, which started this month, will end in November this year and that participating customers have opportunity to win Honda CRV Sport Utility Vehicle (SUV) and other prizes.

    The monthly draws will give each customer a chance to win LED TVs, deep freezers, generators, washing machines, home theatre systems and Blackberry smart phones.

    However, the customer is required to deposit at least N30,000 into his/her current or savings account and maintaining such deposit for at least three months qualifies the customer for the grand draw.

    Announcing the promo in Lagos, Ecobank Deputy Managing Director, Anthony Okpanachi said the bank is committed to rewarding its loyal customers while offering them best of banking services. She said the bank will continue to contribute significantly to the growth of the Nigerian economy.

    He encouraged non customers to walk into any of the bank’s branches and open accounts. He said for a customer to qualify for the monthly draws there is need to make new deposits of N30, 000 into their current or savings accounts each month. Depositing multiples of N30, 000 gives the customer more chances of winning.

    He said maintaining a minimum of N30, 000 throughout the promo period qualifies the customer for the grand draw.

    He emphasised that the bank will continue to expand its product portfolio, which includes current account, savings account, cards, regional and local remittances, consumer finance, loans and advances, investment banking and asset management, regional and international trade.

  • Nigeria, Ghana drive Ecobank’s growth

    The profit of Ecobank Transnational Incorporated (ETI) is driven largely by its Nigeria and Ghana operations, Afrinvest West Africa Plc has said.

    A half-year report of the ETI Group released on the floor of the Nigerian Stock Exchange showed that the lender performed impressively in first half of 2013, with significant improvements in both top and bottom line results.

    The investment and research firm said Nigerian operations continue to drive the group’s activities, contributing 43 per cent of total revenue, followed by Ghana. Noticeable improvements can also be observed in other regional African countries i.e. Southern and Central African region, while the East Africa region was dampened by results from Kenya.

    “The 2012 consolidation of the group and the acquisition of Oceanic Bank has boosted the bank into the Tier-1 sphere of the Nigerian banking space and it continues to enjoy benefits of the inorganic expansion strategies of the group,” Afrinvest said.

    The bank’s revenue grew 19.4 per cent to N195.3 billion while bottom line or net profit grew 94.2 per cent to N26.9 billion. It said the increase can be attributed to performances in Net Interest Income (20.3 per cent year-on-year growth) and other operating income (27 per cent year-on-year growth).

    The Group’s Cost to Income ratio (CIR) moderated by 3.1 per cent from 58.1 per cent in half-year 2012 to 55 in half year 2013 compared to 72 per cent recorded for 2012 fiscal year.

    This brings to fore the Group’s conscious effort to curtail its cost in the near term. The recent inorganic expansion strategy (acquisition of Oceanic Bank) of the bank significantly grew the bank’s loan and deposit.

    The Group’s customers’ loan to deposit ratio grew three per cent from 63 per cent to 66 per cent in half year 2013 on the back of a 24 per cent increase in loans and advances to customers (N1.6 trillion from N1.3 trillion). There was also a marginal reduction in loans to banks, and an 18 per cent growth in deposits to N2.4 trillion.

    “The increased loan to deposit ratio and improved cost income ratio is indicative of the gradual synergies of the recent acquisition of Oceanic Bank and an improvement in the bank’s asset quality. We remain optimistic in the medium to long term on the prospects of ETI based on its diversified business model and the expected economics of scale. The aggressive expansion in the South, West and Central part of Africa buttressed our positive outlook,” it said.

     

  • Ecobank expands to South Sudan

    Ecobank expands to South Sudan

    Ecobank Transnational Incorporated has announced the opening of its South Sudan banking affiliate. In a statement, the bank said the new banking affiliate, the 34th on the African continent, offers the opportunity to support the youngest African state in addressing the challenges in regards to its development.

    It said Ecobank South Sudan offers products and services of the Group to individuals, Small and Medium Scale Enterprises (SMEs), multinationals and institutions.

    The Group Chief Executive Thierry Tanoh said the bank is very excited to have obtained the authorisation of South Sudanese authorities to operate in this country which holds a huge potential for financial intermediation.

    “Our presence in four of its six bordering countries, namely Kenya, Uganda, the Democratic Republic of Congo and the Central African Republic, is a unique advantage to contribute to the development and integration of South Sudan young republic,” he said.

     

  • SEC suspends Ecobank from capital markets

    SEC suspends Ecobank from capital markets

    The Securities and Exchange Commission (SEC) has suspended Ecobank from all capital market activities and from being a receiving bank because of irregularities surrounding a margin loan, a notice on its website said on Thursday.

    SEC, according to Reuters, said an Ecobank client Arian Capital Management had used capital from another company as collateral for a margin loan from the lender.

    After suspending Arian, the SEC said it had asked Ecobank for an explanation but the bank did not.

     

  • NLC urges FG to recapitalise FMBN

    NLC urges FG to recapitalise FMBN

    President of the Nigeria Labour Congress, Comrade Abdulwaheed Omar, has charged the Federal Government to recapitalise the Federal Mortgage Bank of Nigeria.

    Omar said this is necessary in order to address housing deficit in the country.

    He disclosed this at the groundbreaking ceremony of Goodluck Legacy Estate held in Abuja on Tuesday.

    Omar said: “I want to call on the government to recapitalise FMBN. I think we are tired of institutions that are notorious for catching thieves like the Economic and Financial Crimes Commission. I think we need the ones that are adding values critically.

    “The FMBN is one of them. I would say we have to recapitalise this bank so that we come for the next ground breaking which will be millions. We will know that it has been led by the FMBN.”

    Omar, who was represented by his deputy, Comrade Isa Aremu, commended Ecobank for supporting the project with 10 million naira.

    The soft loan is to be paid at an interest rate of 12 percent while the project is to be completed within 18 months.

    In her remarks, the Minister of Housing and Urban Development, Mrs. Amal Pepple, disclosed that the FG is transforming the sector, adding that recapitalisation of the FMBN will start soon.

    lwaheed