ETI Deposits N45bn For Ecobank Rights Issue


Ecobank Transnational Corporation (ETI) has deposited about N45 billion for Ecobank Nigeria Plc proposed rights issue.
Ecobank Nigeria confirmed receipt of the money at weekend.
The Nigerian bank in which ETI holds 71.30 per cent equity is planning to do rights issue later this year.
ETI had last year floated the first regional share offer with the aim to some N300 million to finance its expansion programme subsidiary among others.
But at the close of the offer, it was only N47 billion subscribed.
In a related development Ecobank Nigeria has recorded 30.86 per cent growth in gross earnings during the first quarter ended March 31, 2009.
The unaudited result of the company showed gross earnings of N14.8 billion as against N11.4 billion in the comparable of 30.86 per cent.
Profit after tax rose marginally by 5.29 per cent, from N1.75 billion in 2008 to N1.84 billion in 2009.
Dr John Odeyemi chairman of the bank said recently that the bank has migrated from the Globus Banking Software to the Flexcube Universal Banking System (FCUBS) in order to improve its service delivery by providing a more robust platform for banking transactions, adding that the company intends to further grow its capital base this year to enhance the expansion drive and fund other strategic business initiatives and developments.
Odeyemi noted that the company would continue with its growth plan by attaining its strategic objectives to build scale, consolidate on the enhancement of its information technology platform and build capacity amongst others.
He said that despite challenges at the banking sector, the company remains committed to achieving its mission of transforming into a world class African banking group
Odeyemi noted that the bank renewed its growth plan with the opening of new branches and purchase and assumption of branches of Hallmark Bank in Liquidation which increased the branch network to 197 in 2007 as against 131 in the previous year.
He said that in consistent with the bank’s commitment to investing in the youth in area of corporate social investment, the bank continued its expansion of youth friendly centres across the nation’s compuses.
Odeyemi explained that the centres, a collaborative initiative between Ecobank and National Action Committee on Acids (NACA) provide HIV/AIDS screening facilities and information through leaflets posters, booklets internet among others on HIV/AIDS education adding that guidance and counseling for the youths as well as recreational and educational facilities such as cyber café’ and library are also provided.
He noted that through community partnership, the bank is constructing a building for the Science Secondary school Ojapo-Okpokwu Local Government, Benue State, which according to him the building when completed is expected to provide decent and modern learning facilities for the community.
Odeyemi noted that the project would be replicated in more communities in order parts of the country, adding that the bank’s foundation, a corporate philanthropic arm of the Ecobank group had also continued to touch lives of the people and communities in Nigeria and across West, Central and East Africa.
He attributed the bank’s performance to more efficient operations and processes resulting in increased customer base, a more robust loan portfolio and a resounding commitment by all stakeholders, which according to him shareholders fund increased to N35 billion from N26.7 billion achieved at the close of the consolidation programme in 2005.
The bank recorded a significant growth in 2007 as its gross earnings appreciated by 90 per cent.
The bank’s gross earnings rose from N17 billion in 2006 to N33 billion in 2007, representing an increase of 90 per cent while profit after tax increased by 109 per cent, from N3.6 billion in 2006 to N7.4 billion for the year-ending 31 December 2007.
Non interest revenue improved significantly to N14 billion in 2007 representing 123 per cent growth over the 2006 figures of N6 billion.