Ecobank Nets N1.11bn Profit
Banking
By Ayodele Aminu
Ecobank Nigeria Plc has joined the league of billionaire profit-making banks in the country as it declared a profit before tax of N1.11 billion for the financial year ended December 31, 2003.
This, according to the Chairman of the bank, Mr. Omo-oba Oladele Odimayo who addressed shareholders at the 16th Annual General Meeting (AGM) in Lagos yesterday, indicates a growth of 56 per cent or N396 million against the N713.77 million recorded in 2002.
The bank also recorded increased customer patronage during the review period as indicated by gross earnings, which grew by some 8 per cent, from N4.47 billion to N4.81 billion. profit after tax also inched up by 48 per cent or N263 million, from N553.72 million to N816.8 million.
Similarly, the banks' total assets swelled by 13 per cent, from N24 billion to N27.3 billion, while deposits moved up by 14 per cent, from N17.6 billion to N19.97 billion.
In the same breadth, shareholder's funds which shows the level of confidence investors have in the bank increased by 19 per cent, from N2.94 billion to N3.51 billion. Shareholders also got better returns on their investments as they smiled home with a total dividend of N243.7 million, translating into a dividend of 16kobo per share. This indicates a rise of 33 per cent or 4 kobo over the N12 kobo dividend shareholders received in 2002.
In addition to the dividend pay out, shareholders also received bonus issue of one new share for every 7 shares they held.
Describing the bank's financial results during the year under review as satisfactory, the Chairman noted that the bank was able to increase its revenue base through cost control, new businesses as well as new product initiatives.
"This was a year of improved financial performance, new markets for our bank. The year also reflected our ability to adapt to a changing environment. A rising revenue base in most of our businesses and effective cost control through out our organization continued to drive our results.
"This growth was the results of a successful new business effort supported by new product initiatives. The bank's level of profitability increased to strengthen our balance sheet with shareholders funds increasing from N2.9 billion to N3.5 billion at year end," he declared.
Odimayo maintained that the notable improvement in the fortunes of Ecobank "is the result of the determination of a management team that stretched itself selflessly and tirelessly, undaunted by the fierce competition and the open skepticism of the industry."
Against all the odds, Ecobank, he stressed "focused on its vision to attain greater heights while maintaining its traditional integrity and professionalism."
During the year under review, he noted that several new products such as EcoChattels; EcoVoyager; EcoShelter; MasterCard and Western Union Money Transfer (WUMT)were added to the bank's stable.
Commenting on the business outlook of the current (2004) financial year, the Ecobank boss noted that the year would be challenging for the economy.
"A major challenge is the restoration of confidence in the economy, especially the instability of the naira against major foreign currencies. The challenge of bringing the economy out of the woods is not an easy one.
"Strict economic measures are required to bring the economic growth, reduced inflation and stabilize the currency, in spite of the perennial problems of gross misadministration, inefficiency and waste which continue to plague our resource-rich economy," he added.
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