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Ecobank shareholders ratify resolution to increase stated
capital
Accra, March 27, Ghanadot/GNA –
Shareholders of Ecobank Ghana on Thursday passed a special
resolution authorizing the directors to increase the stated
capital of the bank to 100 million Ghana cedis to position
it to meet the new minimum capital requirements set by the
Bank of Ghana.
This is to be done either by transfer of such sum from
income surplus to stated capital and or by raising
additional capital.
The Central Bank early this year announced a new minimum
capital requirement for obtaining a universal banking
licence at GH¢60 million.
Existing banks are required to attain the minimum
capitalization of GH¢60 million by December 31 2009.
However, Ghanaian-owned banks with local majority share
ownership will have to attain a capitalization of at least
GH¢25 million by the end of 2010 and GH¢60 million by 2012.
Mr. Tei Mensa Mante, Board Chairman, told the Annual General
Meeting of shareholders that the move to shore up the stated
capital was necessary to stand the bank in readiness for
future challenges in the competitive banking environment.
He said the directors would consider various options, saying
that right issue was likely.
On the financial performance in 2007, Mr Mante said the Bank
showed great resilience in the midst of the heightening
competition, growing its asset size by 54 per cent from 432
million GH Cedis to 665 Million Ghana Cedis.
The growth in assets was funded by a 30 per cent increase in
deposits from 336 million GH cedis to 438 million GH cedis.
Mr. Mante said the bank also grew its revenue lines while
effectively controlling its costs. Net interest income was
up by 22 per cent from 31.7 million GH cedis to 38.6 million
GH cedis, while Fee and Commission went up by 38 per cent.
Operating cost increased by 34 per cent in view of expansion
programmes and product deliveries in 2007.
Consequently, the bank’s net profit rose to 19.4 million GH
cedis last year compared to 16.5 million GH cedis in 2006.
“Such a strong profitability performance for a rapidly
expanding bank in a declining margin competitive industry
underscores commitment to growing superior returns for our
valued shareholders,” he said.
Mr Mante said the bank had been alive to its social
responsibility providing funding support to state and
private initiatives.
ECOBANK last year opened 11 branches across the country and
expanded its outreach through increasing the number of its
ATMs to 84, made up of 56 EBG-owned ATMs and 28 set up in
collaboration with Transol.
Mr Samuel Ashietey Adjei, Managing Director, said the bank
would seek to consolidate its expansion programme and
develop tailor made products for the various segments of the
market.
“Our business fundamentals remain strong and coupled with
our innovative approach to banking we will ensure that we
maintain our competitive edge in the banking industry,” he
said.
In another development shareholders resolved to ratify the
increase in the authorized shares of the company to 500
million.
They also approved the proposed dividend payment of 0.083 GH
cedis, representing a payment ratio of 90 per cent of profit
after tax.
GNA
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