Ecobank Transnational Incorporated, ETI, the Lome-based parent company of the Ecobank Group, has signed a five-year senior unsecured loan facility of $250 million from Deutsche Bank AG.
The company, in a statement obtained from Nigerian Stock Exchange (NSE), said the Public Investment Company (PIC) of South Africa, one of the major institutional shareholders of ETI, is providing full credit support to Deutsche Bank in this transaction via a sub–participation of risk.
The new facility of $250 million according to the statement, will be used primarily to refinance maturing facilities.
ETI recorded a 21 per cent growth in profit after tax for the half year ended June 30, 2017.
In the group reports performance for the six months ended June, profit after tax rose by N37.734 billion as against N31.061 billion recorded in 2016, accounting for a growth of 21 per cent.
In a report released to the Exchange, the group’s profit before tax stood at N46.241 billion during the period under review, from N41.469 billion, representing an increase of 11 per cent.
Gross earnings were up 41 per cent to N386.858 billion as against N273.445 billion, accounting for a growth of 41 per cent.
Commenting on the results, Group Chief Executive of ETI, Mr. Ade Ayeyemi, said: “Our audited half year results demonstrated the benefits of our diversified business model. Despite a fragile macroeconomic backdrop in most of our markets, we still generated a 15.6 per cent return on tangible equity and further improved our cost-to- income ratio to 60.6 per cent, driven by our continued cost reduction initiatives across the network.”
According to him, revenues increased five per cent in constant currency, and highlighted encouraging growth in the lender’s Trade and FICC, businesses, thanks to encouraging client activity and improving foreign-exchange markets.
He noted that overall, “the bank is making good progress on its strategy and continue to serve our customers diligently. We look forward to the second half of the year with excitement.
“We are also happy with the progress we are making on the digital front, particularly on our strategy to enable millions of unbanked Africans have access to financial solutions using our revolutionary Ecobank App and other digital channels. We have also recently announced the appointment of Eric Odhiambo as chief risk officer, to help drive our risk management objectives and improve our risk culture.”
The GCEO had two months ago, told shareholders that Ecobank was fundamentally strong as a systemically important bank in Nigeria, a leading bank in both Francophone and Anglophone West Africa and a bank that is growing selectively within Central, Eastern and Southern Africa.