Peter Uzoho in Lome, Togo
The Chairman of Ecobank Transnational
Incorporated (ETI), parent company of all Ecobank subsidiaries, Mr.
Emmanuel Ikazoboh, has assured stakeholders that efforts are being
intensified to sustain the positive performance recorded by the
financial institution going forward.
Ikazoboh stated this while presenting
the bank’s 2018 financial report at the 31st annual general meeting
(AGM) held in Lome, Togo.
After posting a loss in 2016, ETI
bounced back into profit in 2017 and consolidated on that performance in
2018 by growing its profit after tax by 46 per cent to N136 billion.
The chairman said the results reflected
the continued discipline in cost management, commitment to risk
management and the ongoing clean-up of the bank’s credit portfolio,
saying the efficiency or cost-to-income ratio has steadily improved to
61.5 per cent in 2018 despite tepid revenue growth.
He said: “Our capital levels remain
adequate. The Group’s Base II/III Capital Adequacy Ratio of 13.6 per
cent is above the regulatory limit and each of our subsidiaries is
meeting its capital commitments as well. However, your board believes
that in the near-term, to meet our planned growth initiatives, and to
ensure that we win in key countries such as Nigeria and Kenya, we will
need to boost capital levels through a combination of fresh equity
injections and the reinvestments of profits.”
According to him, notwithstanding the
improvement recorded in the year under review and the importance of
paying dividends to shareholders, the board has taken a decision not to
pay dividends to shareholders.
He attributed the decision to factors
such as the impending regulatory capital requirements of the group and
the need to build the holding company’s liquidity buffers.
He, however assured that dividends would
be paid to shareholders as a soon as the bank has a strong balance
sheet and solid capital base.
“We assure you that while this was a
hard decision, it was taken in the best interest of the company. We want
to make sure we attend to the capital needs of all our subsidiaries
before can start paying dividends.”
Also speaking, the Group Chief Executive
Officer, ETI, Mr. Ade Ayeyemi, described the bank’s financial results
in 2018 as remarkable in many ways, saying it reflects the meaningful
and significant progress they made in the execution of “our Roadmap to
Leadership strategy”.
“It also demonstrates the commitment,
hard work and contribution of Ecobankers towards ensuring our
sustainable foundation for growth,” Ayeyemi said.
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