Ecobank Ghana Repositions For Bigger Competition

Shareholders of Ecobank Ghana Limited on Thursday approved, unanimously, a special resolution by the Board to increase the company’s stated capital up to GH¢100 million. The move is primarily to enable Ecobank meet the Bank of Ghana’s December 2009 deadline for GH¢60 million Stated Capital for local banks, however, Board Chairman Tei Mensa Mante also explained that the bank projects increased competition in the banking sector for the coming years and the move will also enable Ecobank to execute bigger projects. The objective will be met either through the transfer of the required sum from the company’s Income Surplus or by raising additional capital, and Mensa Mante assured shareholders that even though fine details of the process were yet to be finalised, a rights issue will not be ruled out. According to the Board Chairman, 2007 proved a very successful year for the bank, as apart from maintaining its position as the 4th largest bank in Ghana; the bank consolidated its business and achieved good financial results. Strong performance Assets hit GH¢665 million, up 54% from GH¢432 in 2006. The growth in assets was funded by 30% increase in deposits from GH¢336 million in 2006 to GH¢438 million. Profits after tax also increased by 18%, recording GH¢19.4 million in 2007 as against GH¢16.5 million in 2006. The strong performance, according to Mr. Tei Mensa Mante, was achieved against the background of a declining-margin competitive industry, and it underscores the bank’s resolve to growing superior returns for shareholders, who approved a dividend of GH¢0.083 per share. An additional gain for shareholders came by way of share price appreciation, which stood at GH¢2.00 at the end of 1997, representing a 48% gain in the year and 82% over the IPO price of GH¢1.10. A former Director of the bank, Jean Ackah, urged the bank to channel more support, per loans, into supporting the agriculture sector. The meeting re-elected three directors - Mrs Frances Adu-Mante, Director of Retail Bank; Mr. Kofi Ansah, a non-executive director and Mr. Albert Kobina Essien, also a non-executive director.