Ecobank obtains N50bn 10-year subordinated loan

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Ecobank Transnational Incorporated, the parent company of the Ecobank Group, has announced that one of its significant subsidiaries, Ecobank Nigeria, secured N50bn, 10-Year bilateral subordinated loan.

According to a statement signed by Adenike Laoye, Group Head, Corporate Communications, the bilateral funding provides stable medium-term liquidity to the balance sheet of Ecobank Nigeria and positively improved its balance sheet ratios, especially the capital adequacy ratio by circa 300 basis points.

The transaction proceeds would be deployed to support Micro, Small and Medium Scale Enterprises and small corporates.

Ecobank Group reported N461.2bn revenue during the nine months ended 30th September 2020, representing nine per cent increase against the corresponding period of 2019.

In its audited report submitted to the Nigeria Stock Exchange on Friday, the pan African bank also recorded a considerable performance in other key financial indices despite the harsh operating environment.

Summary of the report showed that gross earnings increased by 0.4 per cent to N 613.1bn; total assets nudged up by nine per cent to N 9.43tn during the period under review as against the same period of the previous year.

Also, deposits from customers increased to N6.69tn representing 13 per cent and total equity went up by three per cent at N708.6bn.

The bank in a statement noted however that despite the bank’s good showing in deposits from customers, revenue and gross earnings, profit was impacted by the provisioning of about N60.5bn for goodwill for the acquisition of Oceanic Bank in 2011.

The bank said it was optimistic that with clean book aftermath of the full provisioning for Oceanic Bank, it would improve on its profitability for the year end. Profit before tax and goodwill impairment closed at N95.1bn.

Ecobank posted a profit before tax of $90m for the first quarter ended March 31, 2020 down 12 per cent on a reported basis, but up 27 per cent in constant currency, driven by positive operating leverage, the lender said in a statement.

Operating income (net revenue) stood at $393m, up one per cent on a reported basis and 14 per cent in constant currency while operating expenses was $259m, up one per cent on a reported basis and six per cent in constant currency.

Ade Ayeyemi, Group CEO reacting to the financials, said, “Quarter 1, 2020 was the beginning of an unprecedented, uncharted and disturbing period for businesses, governments and individuals globally, owing to the rapid spread of the coronavirus pandemic.

“For us as a bank, our focus is on making sure that we can meet the needs of our customers despite the pandemic, while also ensuring their wellbeing and safety as well as those of our employees.

“All our countries have successfully activated our business continuity plan in line with the needs of each local environment.

“Through our investment in technology over the years, working from home has been seamless and indeed a pretext to a possible new normal post COVID-19.”

 “As the leading pan-African bank, Ecobank embraced the call to duty with a sense of urgency. With our knowledge of Africa and its intricacies in the fight against the spread of COVID-19, we have contributed about $3m in the form of cash, healthcare equipment and supplies, in addition to mounting sustained and robust awareness campaigns, while we are also using our digital banking platforms to provide money to some of the most vulnerable members in our communities.”

Source: PUNCH.

GTI

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