Despite the difficulties of running a bank in the landlocked north African state, Ecobank Mali has still managed consistently to increase its net profits year after year. In 2007, net profits increased 15% on the back of business development and increased efficiency. The bank grew its asset base by 34% during the year and increased its Tier 1 capital by 41%. It returned 32% on its equity, up from 29% in 2006, and lowered its cost-to-income ratio by one percentage point to 49%.
The only blot on an otherwise solid balance sheet was the rise in non-performing loans. One quarter of Ecobank Mali’s loan book is now non-performing, a big leap from 2006 when non-performing loans made up 13% of the loan book.
Despite this, the bank has worked hard to expand its network of branches from five in 2006 to 15 by the end of 2007. It introduced ATMs to Mali in 2006, and increased this number from four to 25 during 2007. The bank also introduced kiosks across the country and direct sales agents, which enabled it to serve unbanked individuals and small scale businesses.
“The activity of our bank in 2007 took place in tight competition with several players in the market. We welcomed the arrival of new banks, proof that the market in Mali is attractive. Competition would become tougher but we will benefit,” says Ecobank Mali managing director Binta Ndoye.
