Ecobank Transnational Incorporated Plc (ETI) has pledged to remain committed to shareholder value creation in order to build a stronger and more profitable financial service institution. Chief Executive Officer of ETI, Ade Ayeyemi while giving out the facts behind the figure of the corporation at the Nigerian Stock Exchange (NSE) at the weekend explained that shareholder value creation was a core strategy the bank deplored to drive profit. Giving further incite into the activities of the bank, he added that ETI being a Pan African bank would invest only where there are sustainable competitive advantage, while noting that Ecobank intend to defend the competitive position of being among the top three in 14 markets in Middle Africa.
While noting that the bank has come a long distance with presence in 36 African countries and listed in three African Stock Exchanges, with total assests at $23.6 billion and revenue of $2.1 billion, Mr Ayeyemi said the bank would not relent but keep up efforts to win and compete favourably especially in Nigeria where it has the largest market for Ecobank Group of 40 per cent of its investment. On the financial plans of the company, the bank's CEO disclosed its intentions to spend on what reduces cost and improve revenue for the group.
Mr. Ayeyemi noted that the lender will rather than exit countries of operations, withdraw from products that are not profitable in other to meet the company's aspiration of being amongst the top three players. Speaking on the challenging economic macro-economic indicators, which is having its impact on financial institutions Mr Ayeyemi said the ETI will focus on key areas namely; growth that is driven by organic revenue, portfolio clarifications, withdrawal from products that are not profitable and creating more value for shareholders. On ETI's financials, the Head Financial Reporting, Mr Ayo Adepoju in his presentation, attributed the major challenges of the banking performance for FY2015 and Q1,2016 to currency volatility issues.
Mr Adepoju said the bank is focusing on the following opportunities to boost its financials in 2016, a moderate balance sheet growth with Deposits increasing by about 2 percent and Net loans staying flat, improved efficiency and profitability with cost to income ratio of 60-65 percent while revenue stays flat, better asset quality by reduction of NPL ratio to 7.5% and NPL recovery by 75 percent. Amidst the headwinds, he listed the consolidation of data centres and branch rationalization/productivity drive as part of the key focus for the year, stating that the achievement of their targets is certain within a medium-long term period as ETI's strategy execution kicks off.