Ecobank Nigeria and Ecobank Ghana have both already been listed respectively at the Lagos Stock Exchange and the Accra Stock Exchange.
ETI will be listed in the near future at the Bourse régionale des valeurs mobilières (BRVM) in Abidjan, Lagos and Accra stock exchanges. "This proposed listing on three exchanges in West Africa is designed to improve the liquidity of our shares and the market value of the company to our shareholders", explains Arnold Ekpe. "It is also designed to enhance the financial flexibility of the company by providing a liquid instrument for funding growth".
Along with the moves to list Ecobank Ghana, Ecobank Nigeria and ETI, important highlights of 2005 include the successful 're-organization of the group" and that concerning "the recapitalization of Ecobank Nigeria", reports the Group's CEO.
The re-organization of the group, he says, was designed to refresh the institution and bring a new generation of managers to ensure the future leadership and decentralize decision-making in the group. It has led to the establishment of four regions and two business units. Five executive directors were also appointed to reinforce the executive management.
Another milestone of the year under review has been the successful recapitalization of Ecobank Nigeria. "It has ensured our continued and strengthened presence in the Nigerian market", asserts Ekpe.
This recapitalization was compulsory. It was undertaken to meet the higher capital requirements set by the financial authorities of Nigeria. It can also be considered as a move made by the group in its ongoing combination process with FirstBank, the oldest and one of the leading banks in Nigeria.
Still subject to shareholder and regulatory approval, such a combination would create, ultimately, one of the largest and most diversified banking groups in Africa. With the total assets of FirstBank worth more than US$5 billion, the combined assets of the two banks would be more than US$7 billion.
The proposed combination with FirstBank can be understood as part of an overall Ecobank strategy which has been designed to achieve growth, efficiency and scale. This strategy is aimed at ensuring that Ecobank makes inroads into new markets; increasing its market share in existing markets through opening new branches and combination with local banks; and expanding into new market segments such as retail banking.
Other objectives pursued under this new strategy include efficiencies to be derived from economies of scale, advantages resulting from shared services and from common standards adhered to in all markets in order to make Ecobank operate as "One Bank" across all countries.
Targeting a geographical zone it identifies as 'Middle Africa', which stretches from Praia to Windhoek, including most sub-Saharan African countries, but excluding South Africa and Northern Africa, Ecobank has also decided to strictly adhere to international norms of corporate governance.
It is in this regard that its accounts are reported in accordance with international financial reporting standards (IFRS). It has equally adopted the code of corporate governance of the International financial corporation (IFC) and meeting similar governance standards, such as the BASL Code of corporate governance.
The 2005 Ecobank annual report took into account the overall economic performance of the West and Central African region. "It was positive and the trend looks likely to continue in 2006", states Arnold Ekpe. "The West and Central African economies recorded positive growth with the oil exporting countries in particular benefiting from high oil prices as well as other positive economic and political developments across the region."
It is to be recalled that the Ecobank Group was created in October 3rd, 1985, by the West African private sector community with the support of the Economic Community of West African States (ECOWAS) in order to promote trade and investment in the region. It is now present in thirteen countries -Benin, Burkina Faso, Cameroon, Cap Verde, Côte d'Ivoire, Ghana, Guinea, Liberia, Mali, Niger, Nigeria, Senegal, and Togo. It plans to open four new subsidiaries in 2006 in Chad, Equatorial Guinea, Sierra Leone and Guinea-Bissau. Ecobank Transnational Incorporated is the parent company of the Ecobank Group and its strategic intent is to transform Ecobank into a world-class African banking institution.
