One of the Ecobank Group subsidiaries, Ecobank Nigeria has secured a 50 billion naira for a 10 year subordinated loan. The loan which is aimed at supporting Micro, Small and Medium Scale Enterprises and small corporates was obtained to meet the needs of their customers as well as ensure their well-being and the safety of their employees.
In a statement signed by the Group Head, Corporate Communications, Adenike Laoye, the bilateral loan will provide a consistent medium-term liquidity to the balance sheet of the bank. She added that the stability will also improve capital adequacy ratio by circa 300 basis points.
The report released by the Ecobank Group revealed that the bank earned 461.2 billion naira in the course of nine months which ended on the 30th September, 2020 with a 9 percent increase from the previous year.
Recently, the Nigeria Stock Exchange said the audit report submitted by the bank indicated that the gross income increased from 0.4 per cent to N 613.1bn and its total assets surged by nine per cent to N 9.43tn during the same 9 months period of 2019 and 2020 respectively.
The Pan African Bank according to NSE had a high increase of deposits by N6.69 trillion at 13 percent which total equity accelerated by three percent at N708.6 billion.
According to research, despite the increase in deposit, the revenue and gross income of the bank, profit was impacted by the provisioning of about N60.5 billion for goodwill for the acquisition of Oceanic Bank in 2011. The research disclosed that the profit before tax and goodwill impairmen however closed at N95.1billion at the end of the year.
Despite the harsh operating environment in 2020, Ecobank had a profit before tax of $90 million for the first quarter which ended on the 31st of March, 2020 at 12 per cent and later increased at 27 percent in constant currency through a positive operating system.
As the leading Pan-african bank, report gathered showed that Ecobank’s net revenue stood at $393 million, up to one percent with 14 percent in constant currency and $259m, which is up to one per cent on a reported basis and six per cent in constant currency.
In his reaction, the Group’s CEO, Ade Ayeyemi stated that the first quarter of 2020 was a challenging and an unexpected year for individuals, business enterprises and even the government. He said the bank has been strategizing on plans to meet the needs of their customers, adding that the bank has disbursed the sum of $3 million in form of cash, healthcare equipment and supplies, as well as Digital banking systems to prevent vulnerable customers and employees from contracting coronavirus.