Ecobank posted a 17% increase in net profits last year, a noteworthy achievement given the backdrop of economic and political volatility that has affected the country since 2003 – elections, labour unrest and border tension with neighbouring Nigeria. To increase shareholder return, initiatives were taken to boost revenues, promote productive investments and deploy a new strategy by opening the bank to retail activities, particularly in the area of micro-finance. This has helped Ecobank to maintain its position as the most profitable bank in Benin.
Entering the retail arena was last year’s highlight. This meant transforming the bank from a largely wholesale to a more balanced business mix by building a strong retail banking franchise. Ecobank grew its retail branch network from 29 to 36 offices last year and almost trebled its ATM network. It introduced electronic PoSs in chemists, supermarkets and restaurants, and by the end of last year, 40 of these outlets were in operation. The result was a huge increase in the number of customer accounts, which more than doubled to 75,000 by the end of 2006. Assets grew by 20% in this period, with an increase in the bank’s RoE and improvement in the cost-income ratio.
Customer satisfaction remained high thanks to the introduction of modern technology to support the bank’s network as a pan-African group. Ecobank’s stated mission is to be a world-class banking group complying with the highest international standards and dedicated to serving its customers.
