Members of staff were seconded for seminars and conferences on many aspects of the group’s business during the year.
Although the economy was hit by two major industrial disputes, the bank’s team spirit prevailed to yield positive results, reflected in a 15.42% increase in assets and 80.22% in net profits. Several areas benefited from these efforts. FX inflows increased from exporters and project funds, at the same time that cash management capabilities were improved. The bank grew its branch network significantly last year, and expanded payment sites for remittances. ICB focused on corporate banking, leading to major gains not only in FX income, but also the deposit base and trade finance.
Group accounting was unified to meet IFRS and, with the group’s listing on AIM in London, brand quality and recognition is forecast to sharpen the bank’s competitive edge. Treasury and loan income grew by an impressive 82%, with fee-based income up 50%. International expansion, highlighted by the opening of branches in Senegal and Djibouti, will provide higher growth potential in future years.
ICB was able to reduce its NPL ratio to 11.9% of the loan book and the bank is confident this can be reduced to 10% this year with the implementation of rigorous risk management practices.
“ICB has continued to focus on enhancing quality of service delivery and thus was able to attract higher volumes in recent years,” says chief executive Seshagiri Rao. “The overall business mix has been improved with expanded loans and trade finance portfolio, which are contributing significantly to improving earnings, and bettered shareholder returns to about 50% based on average capital employed for the year 2006. This year, too, a similar trend has been set and it is most likely to surpass the results of past years with convincing margins. ICB is embarking on sustained growth with new business initiatives and opening a new branch soon.”
