Eco Bank Nigeria Plc on Tuesday released its audited results for the year end 31 December, 2009 revealing a loss before tax of N5.944 billion and a loss after tax of N4.588 billion, disclosed Jibril Aku, its managing director yesterday at a press conference.
Mr. Aku said the bank had faced challenges just like every other bank in the industry following the banking industry crisis and the required provisioning for non performing loans.
“A major reason for the results is from the Fees and Commission section (which consists of trade transactions, payment turnover, compensation) which rose to N17 billion, from N10 billion the previous year and the provisioning we had to do.” The bank had an increase in its turnover to N59, 864.0 billion from N55.156.0 billion in its financial year end, 31 December, 2008. Fixed assets also rose to N21.382 billion from N18.818 billion in December 2008. Cash and other balances however fell to N9.524 billion from N18.768 billion in December 2008. Other credit balances fell to N38, 297 billion from N89.966 billion in December 2008 but the banks working capital increased by about 400 per cent from N33.416 billio in December 2008 to N172.442 billion in December 2009.
Mr. Aku said the bank did not really suffer any imbalance arising from the common year end as it has usually closed its books in December, yearly.
Moving forward
The managing director said the bank has experienced a few changes in the last one year, including the takeover of a new managing director, the introduction of three executive directors from other countries to shore up its Nigerian base and meet the present challenges.
“There were also changes in the local board like the board chairman and so on and some other people have also joined the board.
“We have slightly amended our businesses, following the happenings in the industry. Our services are now divided into two, corporate banking and domestic banking. The credit process is stronger now. There are now more portfolio reviewers, stress testing have improved, it’s a whole new remake now of the credit process to tighten it”.
“We want to promote the strength that we have. We hope that we see very strong trade links in Africa very soon. Our companies in about 30 African countries and alliances with NED Bank in South Africa and a representing company in Dubai and Eco Bank France are positioning us to be able to bridge financial businesses within and outside Africa.
Mr. Aku became the bank’s helmsman in March this year taking over from Offong Ambah who was elevated to Group Executive Director, Ecobank Transnational Incorporated in charge of Ecobank Capital.
Prior to this appointment, Mr. Aku was the Executive Director in charge of Treasury & Financial Institutions.
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