Since 2005, net profit growth has averaged 32.6% on the back of an aggressive expansion programme. Net profit growth for 2007, however, fell back 0.4% on the year before, while return on equity also dropped back to 29%, from 34% in 2006. Its cost-to-income level also increased marginally, but it has managed to reduce its non-performing loan ratio to 8.2% of its loan book, from 8.6% in 2007.
The bank’s Tier 1 capital ratio grew by 37.5% in 2007, giving it a strong base on which to expand. The bank also grew its asset base by 21.7% in 2007, which marks three years of solid growth. Such growth has been encouraged by the bank’s focus on extending its branch network. It now has 18 branches open for business in the country, up from just eight in 2005. Another departure for the bank was the establishment of a dedicated call centre, with which it can service its clients more efficiently as well as cross-sell other products and services.
Ecobank continued its focus on foreign exchange trading in 2007 on the back of its centralised treasury service – something that is unique in the Côte d’Ivoire market. Ecobank’s steady growth in this market has meant it has moved from being the fifth largest bank in 2006 to the third largest bank in the country today. Ecobank continued to grow in 2008, both in terms of customer loans and deposits as well as net profit.
Charles Daboiko, managing director of Ecobank Côte d’Ivoire, says the bank’s success was a result of its retail strategy. “The offering of a more diversified product mix to a wider customer base has been the driving force behind our performance.”
