Banking
Ecobank Shows Resilience, Grows Customer Deposits to N7.3trn
By Dipo Olowookere
No doubt, the year 2020 was very challenging for many companies because of the COVID-19 pandemic, but in the midst of this, Ecobank Group showed resilience.
The lender operating in 33 countries across Africa released its financial performance for the year to the Nigerian Stock Exchange (NSE) and from the brief analysis done by Business Post, the company proved beyond a reasonable doubt that it is a bank for the people.
This is because despite the headwinds, its deposit from customers increased and this can be attributed to the various digital products designed by Ecobank to make financial transactions easier for its customers.
In the year under review, Ecobank increased its customer deposits by 23.73 per cent to N7.3 trillion from N5.9 trillion a year earlier.
The deposits from customers formed a significant percentage of the bank’s liabilities in the period under consideration, N9.6 trillion versus N7.9 trillion in 2019.
It was observed that the good use of technology for banking operations helped Ecobank to grow its interest income in the year by 4 per cent to N531.2 billion from N510.8 billion.
Last year, after the federal government declared a lockdown to curtail the spread of coronavirus in the country, many residents could not go out and technology was the saving grace for most organisations, including banks.
With an interest expense of N184.6 billion versus N239.6 billion in 2019, Ecobank closed the year with a 28 per cent rise in its net interest income of N346.6 billion compared with N271.2 billion in the prior year.
Sadly, the gross earnings recorded in the year reduced by 0.02 per cent to N841.1 billion from N842.5 billion, while the operating income improved by 9.0 per cent to N641.8 billion from N586.9 billion.
A further look into the results by Business Post showed that the fee and commission income reduced to N162.2 billion from N166.4 billion as a result of the decline in the portfolio and other management fees as well as card maintenance fees.
According to the results, a 4 per cent increase in the operating expenses to N402.7 billion from N388.3 billion as well as others weakened the profit before tax of the company significantly by 55 per cent to N66.6 billion from N146.5 billion.
The profit after tax closed in the year at 33.7 billion in contrast to N99.5 billion in 2019, signifying a decline by 66 per cent.
But the CEO of Ecobank Group, Mr Ade Ayeyemi, remains optimistic that the bank will fly higher.
He said the expansion of the balance sheet with the increase in the total assets of the bank to N10.4 trillion in the year from N8.6 trillion in the corresponding year of 2019 was “a reflection of the power of our pan-African diversified one-bank business model.”
“I am proud of Ecobankers’ hard work and continued service to our customers and the support we provide to the communities we serve,” he enthused.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
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