Ecobank Transnational Incorporated 2365, Boulevard du Mono B.P. 3261, Lomé – Togo
Ecobank Group Abridged Annual Report 2013
Celebrating 25 years of pan-African banking Corporate information 41 Ecobank Group – Abridged Annual Report 2013 Customer contact centres
Services: For all enquiries, kindly email or call one of our Contact Centers listed below: Celebrating 25 years Balance enquiry • Account balance • Transaction confi rmations All countries: of pan-African banking [email protected] • Transfer confi rmations Card services Ghana Ecobank would like to thank our customers, staff, • Card activation for online transaction Please dial: Toll free (Ghana only): shareholders and partners who have supported • Pin resets (233) 302 21 39 99 3225 us in reaching this milestone of twenty fi ve years • Card blocking (MTN, Airtel, Vodafone) of operations. Complaints • ATM complaints Nigeria • Card complaints Please dial: Toll free (Nigeria only): (234) 700 500 0000 0800 326 2265 The Group has come a long way since opening • Transaction complaints its fi rst branch in Togo in 1988. Africa has also • Service/product delivery delays • Staff attitude developed rapidly during this time. We are Kenya General enquiries Please dial: Toll free (Kenya only): confi dent about the opportunity and potential • Information on Ecobank services/products (254) 20 288 3000 0800 221 221 8 for the next 25 years, both for the Group and • Interest/exchange rates (254) 71 909 8000 (free from landlines) the continent. • Directions to ATMs/branches • Account opening requirements Côte d’Ivoire • Branch contacts Please dial: Toll free (Côte d’Ivoire only): The future is pan-African, and Ecobank • Fees and charges (225) 22 40 02 00 800 800 88 (MTN, Orange, CITelecom, is the pan-African bank. Moov and Comium)
Cameroon Please dial: (237) 33 43 13 63 Corporate information 411 Ecobank Group – Abridged Annual Report 2013 ContentsCustomer contact centres
Services: For all enquiries, kindly email or call one of our 2013 Highlights 2 Contact Centers listed below: Ecobank at a glance 4 Celebrating 25 years Balance enquiry Performance highlights 6 • Account balance The year in review 8 • Transaction confi rmations All countries: of pan-African banking [email protected] • Transfer confi rmations BoardCard services and Management Reports Ghana 10 Ecobank would like to thank our customers, staff, • Card activation for online transaction Group Chairman’s statementPlease dial: Toll free (Ghana only): 12 • Pin resets shareholders and partners who have supported Directors’ report (233) 302 21 39 99 3225 14 • Card blocking (MTN, Airtel, Vodafone) us in reaching this milestone of twenty fi ve years Board of Directors 16 of operations. Complaints Group Chief Executive’s review 18 • ATM complaints Business report: CorporateNigeria and Investment Bank 22 • Card complaints Business report: DomesticPlease Bank dial: Toll free (Nigeria only): 23 (234) 700 500 0000 0800 326 2265 The Group has come a long way since opening • Transaction complaints its fi rst branch in Togo in 1988. Africa has also • Service/product delivery delays • Staff attitude developed rapidly during this time. We are Financial Statements Kenya 24 confi dent about the opportunity and potential General enquiries Statement of Directors’ responsibilitiesPlease dial: Toll free (Kenya only): 26 • Information on Ecobank services/products Auditor’s report (254) 20 288 3000 0800 221 221 8 27 (254) 71 909 8000 (free from landlines) for the next 25 years, both for the Group and • Interest/exchange rates Consolidated financial statements 28 the continent. • Directions to ATMs/branches Parent company’s financial statements 34 • Account opening requirements Côte d’Ivoire • Branch contacts Please dial: Toll free (Côte d’Ivoire only): The future is pan-African, and Ecobank • Fees and charges (225) 22 40 02 00 800 800 88 (MTN, Orange, CITelecom, Corporate Information 38 is the pan-African bank. Moov and Comium) Share capital overview 38 Holding company and subsidiariesCameroon 39 Shareholder contacts Please dial: 40 Customer contact centers (237) 33 43 13 63 41 2 2013 Highlights Ecobank Group – Abridged Annual Report 2013
2013 Highlights
Our brand and appearance may have evolved over the years, but our core values have always remained the same.
Vision Our vision is to build a world class pan-African bank and contribute to the economic development and financial integration of Africa.
Mission Our mission is to provide all of our customers with convenient and reliable financial products and services.
This is our newest Ecobank Direct branch, located in Accra, Ghana. It was opened in April 2014.
1988 1995 2000 2002 2013 Highlights 3 Ecobank Group – Abridged Annual Report 2013
2005 2007 2009 – Present 4 2013 Highlights Ecobank Group – Abridged Annual Report 2013 Ecobank at a glance
Ecobank is the leading pan-African banking group, with a presence in 35 African countries and international offices in Paris, London, Dubai and Beijing. At year‑end 2013, the Group had US$22.5 billion in assets and US$2.1 billion in total equity. Ecobank is listed on the Lagos, Accra and Abidjan (BRVM) stock exchanges.
Our vision and mission Our businesses Our geographical regions Through our two customer-centric business Our geographical regions in Africa are Our vision is to build a world-class segments, Domestic Bank and Corporate segmented according to shared attributes pan-African bank and contribute and Investment Bank, we provide a full like common currency and central bank, to the economic development range of retail, wholesale, investment and size and along existing Regional Economic and financial integration of Africa. transactional banking services. Communities. Within these clusters, Ecobank is structured as a network of locally Our mission is to provide all of Corporate and Investment Bank incorporated, regulated banking entities. our customers with convenient See page 22 We provide financial solutions to global, Ecobank Nedbank Alliance: the and reliable financial products regional and public corporates, financial African champion banking network and services. institutions and international organizations. Formed in 2008, the Ecobank Nedbank Products and services include pan-African We believe we have a responsibility to be alliance is the largest banking network in lending, trade services, cash management, socially relevant to the communities that we Africa, with more than 2,100 branches in internet banking and value-chain finance. serve. We are also strongly committed to 37 countries. As part of its commitment to We also provide treasury services, corporate sustainable development of the region and offering a uniquely One Bank experience, finance, investment banking and securities are a signatory of the Equator Principles, the alliance provides tailored banking and and asset management. the UNEP Finance Initiative and the UN business advisory solutions to Ecobank and Global Compact. Nedbank clients across Africa. This includes Domestic Bank our advisory service, LocalKnowledgeAfricaTM, We are optimistic about both Africa’s future See page 23 which provides tailored research and market and the prospects for its financial services We provide a full range of convenient, intelligence for businesses seeking to expand sector. That optimism continues to underpin accessible, and reliable financial products and their presence or taking their first steps in our pan-African strategy today, just as it services to more than 10 million individuals, Middle Africa. did 25 years ago at the opening of our small businesses, local corporates and public first branch in Togo. Every day our 19,546 sector organizations, through our extensive employees work hard to service our more network of 1,284 branches and offices, than 10.4 million customers, who range 2,314 ATMs and over 10,000 POS terminals. from households to governments, domestic and multinational businesses. By providing innovative products and excellent customer service, over time, we hope to create sustainable value for all Ecobank stakeholders.
Our key figures As at 31 December 2013
Total equity (US$) Ecobank employees Branches and offices 2.1bn 19,546 1,284
Total assets (US$) Ecobank customers Ecobank ATMs 22.5bn 10.4m 2,314 2013 Highlights 5 Ecobank Group – Abridged Annual Report 2013
Unique pan-African footprint
International
Revenue $30m Total assets $0.5bn Addis Ababa (Rep. Office) Lomé Countries (Headquarters) 5 • France • UK • Dubai • South Africa Luanda • China (Rep. Office) Branches – Employees Johannesburg (Rep. Office) 86
Francophone Nigeria Rest of Central Africa East Africa Southern Africa West Africa West Africa
Revenue Revenue Revenue Revenue Revenue Revenue $434m $819m $383m $185m $68m $76m Total assets Total assets Total assets Total assets Total assets Total assets $6.5bn $9.2bn $3.0bn $2.3bn $1.0bn $0.6bn Countries Countries Countries Countries Countries Countries 9 1 5 7 7 5 • Benin • Burkina Faso • Nigeria • Ghana • Cameroon • Chad • Rwanda • Kenya • DR Congo • Côte d’Ivoire • Guinea • Central Africa • Burundi • Uganda • Malawi • Cape Verde • Mali • Liberia • São Tomé and Príncipe • Tanzania • Zambia • Niger • Senegal • Sierra Leone • Congo • Gabon • South Sudan • Zimbabwe • Togo • Guinea-Bissau • Gambia • Equatorial Guinea • Ethiopia (rep. office) • Angola (rep. office)
Branches Branches Branches Branches Branches Branches 262 610 150 85 93 53 Employees Employees Employees Employees Employees Employees 2,954 10,097 2,475 1,200 1,311 598
The number of employees for the Group is inclusive of employees of ETI, EDC and eProcess which are not represented in our geographic clusters. The number of branches for the Group is inclusive of number of offices which are not part of the numbers of the clusters. The Group total assets and revenues are made up of numbers from our geographic clusters, other entities not part of our cluster grouping and the impact of consolidation adjustments. 6 2013 Highlights Ecobank Group – Abridged Annual Report 2013 Performance highlights
Net revenue for 2013 surpassed US$2.0bn, showing strong year-on-year organic growth of 16% despite a tough operating environment.
Selected income statement data
For the year ended 31 December (in millions of US Dollars, except per share data) 2013 2012 Change (%) Net revenue 2,003 1,730 +16% Operating expenses 1,405 1,236 +14% Pre-impairment profit 598 494 +21% Impairment losses 377 155 +143% Profit before tax 222 338 -34% Profit for the year from continuing operations 156 282 -45% Profit attributable to owners of the parent (from continuing operations) 103 246 -58%
Earnings per share (from continuing operations) Basic 0.60 1.67 -64% Diluted 0.55 1.28 -57% Dividend per share – 0.40
Selected statement of financial position data
As at 31 December (in millions of US Dollars, except per share data) 2013 2012 Change (%) Loans and advances to customers (net) 11,422 9,441 +21% Total assets 22,532 19,939 +13% Customer deposits 16,490 14,620 +13% Total equity 2,135 2,174 -2%
Book value per share ($ cents) 11.3 11.7 -3%
Selected ratios As at, or for year ended, 31 December 2013
Net interest margin NPL ratio Tier 1 capital ratio 7.2% 6.2% 13.0% (2012: 6.5%) (2012: 5.6%) (2012: 15.2%)
Cost-to-income ratio Coverage ratio Capital adequacy ratio 70.1% 79.0% 16.3% (2012: 71.4%) (2012: 74.1%) (2012: 19.3%) 2013 Highlights 7 Ecobank Group – Abridged Annual Report 2013
Net revenue* Pre-impairment profit* Profit before tax* (US$m) (US$m) (US$m) 598 338
494 2,003 277 1,730 222 363
1,196 169 270 241 873 900 101
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
Customer loans (net) Customer deposits Total assets (US$bn) (US$bn) (US$bn) 11.4 22.5 16.5 9.4 19.9 14.6 17.1 7.3 12.1
5.2 4.7 7.9 10.4 9.0 6.4
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
Attributable profit* Earnings per share (basic)* Return on average equity (US$m) 246 (US cents) (%) 1.76 1.67
182 15.9 15.8
1.14 10.4 113 103
0.60 6.9 0.58 5.6 51
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 * 2012 and 2013 figures relate to continuing operations 8 2013 Highlights Ecobank Group – Abridged Annual Report 2013 The year in review
Q1 – January – March Q2 – April – June
Ecobank hosted its inaugural Capital Markets Ecobank won 2013 Award for Innovation Day at its Lomé headquarters, providing major in Banking in African Banker’s awards, shareholders and investment analysts with in recognition of its significant contribution insights into the Group’s strategic priorities to improving financial inclusion across and its growth targets for 2013. Africa, leveraging technology and its pan-African footprint.
Launched in 2013, Ecobank’s “MobileMoney” service enables customers to make payments, collections and transfers, check balances and buy airtime via their mobile telephones.
Senior management attend Ecobank Capital Markets Day (L–R Patrick Akinwuntan, Head of Domestic Bank; Graham Dempster, COO Nedbank Group, Evelyne Tall; Group COO, Samuel Ayim, Company Secretary; Laurence do Rego, Group Executive Director, Finance).
February 2013 April 2013 African Development Bank approved US$200m facility to support Ecobank senior management conduct “facts behind the figures” Ecobank’s trade finance activities across Africa. presentations at the Nigeria, Ghana and BRVM stock exchanges.
Ecobank sells majority stake in Oceanic Life, its life assurance business June 2013 in Nigeria, to Old Mutual. Ecobank Ghana won the Bank of the Year category in the annual Ghana Banking Awards. The award is given to the bank with the March 2013 highest weighted scores for customer satisfaction, corporate social Celent, the financial services consultancy firm, recognized Ecobank’s responsibility and financial performance. Omni online corporate cash management platform with a Model Bank award for its innovative approach, business success and Ecobank announced that it is working with authorities in integration excellence. Côte d’Ivoire and Nigeria to finance the Abidjan–Lagos transport corridor, a transnational highway passing through five West African countries, due to be completed in 2016. 2013 Highlights 9 Ecobank Group – Abridged Annual Report 2013
Q3 – July – September Q4 – October – December
Ecobank Research won Africa Investor’s award Ecobank and the Global Fund to Fight for Best Africa Research team for the third AIDS, Tuberculosis and Malaria launched consecutive year. US$3m of innovative funding, aimed at strengthening financial management capabilities of grant recipients.
Albert Essien, Head of Corporate and Investment Banking, receives the award on behalf of Ecobank Research from Africa Investor’s MD, Hubert Danso.
July 2013
Ecobank supported the development challenges facing Africa’s Charles Kie (far right), Ecobank’s Head of Corporate Banking attends launch youngest state by setting up its 32nd African banking subsidiary of the Global Fund’s Fourth Replenishment in Washington DC in the presence in South Sudan. of Bill Gates and other corporate donors.
September 2013 October 2013 Airtel partnered with Ecobank to provide mobile banking in nine Ecobank held its first ‘Ecobank Day’, encouraging all employees African countries. to devote a day of their free time to community volunteering.
African Guarantee Fund provides Ecobank with US$50m portfolio Ecobank opened its Ethiopian representative office in Addis Ababa, guarantee to support SMEs in Benin, Burkina Faso, Nigeria, Cameroon, bringing the total of African countries in which the bank is present Côte d’Ivoire, the Democratic Republic of Congo and Kenya. to 35.
Ecobank is a first-time participant in Sibos, the global financial Ecobank wins Global Finance’s inaugural Best Frontier Bank Award. services forum, in Dubai in a joint initiative with Nedbank. Omni, Ecobank’s real-time cross-border payment and cash management system, successfully deployed in 30 African countries.
Chairman Kolapo Lawson steps down and André Siaka assumes Ecobank chairmanship
December 2013 Ecobank signed a US$50 million, 10-year loan agreement with French development institution, Proparco, to support the growth of its banking network.
Ecobank Capital acted as the Mandated Lead Arranger for a Ecobank and Nedbank teams at SIBOS 2013 in Dubai. US$500 million pre-export deal on behalf of Orion Oil in the largest syndicated loan transaction in Central Africa to date funded solely by regional banks. 10 Board and Management Reports Ecobank Group – Abridged Annual Report 2013
Board and Management Reports
Our founders and early shareholders had an entrepreneurial spirit of resilience and determination that saw them through many challenges.
This passion continues to drive us to learn from the challenges of today to build a stronger institution for the future.
The Ecobank spirit remains strong, over 25 years on.
A meeting of the early shareholders/founders of Ecobank. Board and Management Reports 11 Ecobank Group – Abridged Annual Report 2013 12 Board and Management Reports Ecobank Group – Abridged Annual Report 2013 Group Chairman’s statement
and value for our customers, employees and shareholders alike.
We also consider ourselves to have been pioneers within the African banking sector in terms of the adoption of international best practice. So, the fact that management and corporate governance issues have dominated the headlines about Ecobank over the past year is a matter of deep regret. On behalf of the Board, I wish to convey our sincerest apologies to all our stakeholders that, of late, we have not always lived up to our own high standards in terms of business practice and transparency.
Given that Ecobank has more than doubled in balance sheet size over the past five years, these are the almost inevitable “growing pains” associated with accelerated business expansion. Nevertheless, the Board takes corporate governance very seriously – hence our decision to commission leading practitioners, such as the International Institute for Management Development and Ernst and Young (EY), to carry out independent “The Board is committed to establishing the highest reviews of our practices. We also welcome the open and constructive dialogue that we standards of corporate governance... we will learn have had, and will continue to have, with the regulators of each of the three West African from the past, address all of the issues and lay firm exchanges on which Ecobank Transnational foundations for Ecobank’s continued success in the Incorporated (ETI) is listed. As a result of these interactions, we have next 25 years.” instituted a detailed governance action I consider it a great honor to have the, albeit unexpected, privilege of reporting to you plan to strengthen our ability to meet on Ecobank’s progress in 2013, our silver these challenges going forward, as well anniversary year. This represents a significant as measures to improve our systems and milestone in the life of any company, but internal controls. Such a comprehensive particularly so for an organization which has refresh of our corporate governance should become such a vital part of the banking and assure our stakeholders of the seriousness commercial life of Middle Africa. The past of our intent. 25 years have proved to be an incredible journey, not least in terms of our growth Environment from humble beginnings to becoming the Our marketplace, Middle Africa, continues leading pan-African bank, with more than on its robust growth trajectory. According US$22 billion of assets, revenue in excess of to the International Monetary Fund, GDP US$2 billion and more than 1,200 branches growth for the region is expected to rise in 35 countries across our continent. to 6% this year, from 5% in 2013, ranking second only to developing Asia in terms For, when Ecobank started out, nobody had of its pace of development. The larger a mobile phone, letters were being written economies of Nigeria, Ghana and Kenya are with typewriters and correspondence was witnessing rapid economic growth, with sent by post. Our strategy of leveraging substantial gains in the banking and financial technology to drive product and service services sectors. Elsewhere, growth has innovation has been a hallmark of Ecobank’s been particularly buoyant in resource-rich success over the years and it will continue countries, including the Democratic Republic to be a key component in our mission to of Congo and Sierra Leone. Improved political shape the future of pan-African banking, stability and security have led to economic thereby creating unprecedented opportunity recovery in the likes of Mali and Côte d’Ivoire. Board and Management Reports 13 Ecobank Group – Abridged Annual Report 2013
Thanks to regulatory reforms, urbanization, executive directors (Dr Babatunde A.M. of the Board, I thank everyone for their the expanding middle class and advances in Ajibade, Mr Paulo Gomes and Mr Isyaku efforts and encourage you all to embrace technology, the prospects for Africa’s banking Umar) resigned their Board positions during the undoubted challenges ahead with sector remain highly attractive. According the first quarter of 2014. On behalf of the renewed confidence and vigor. For, make to Ernst and Young, at current growth rates, Board, I should like to thank them all for their no mistake, we need to work in unison to the financial services sector could make up valued contributions and wish them well restore Ecobank’s world-class reputation and around 20% of the continent’s collective in their future endeavors. regain the trust of our customers, partners GDP within the next decade, compared with and investors. 10% today. Significant growth opportunities In line with a directive from the Securities remain in both the retail and wholesale and Exchange Commission of Nigeria, Mrs. Outlook sectors that will allow Ecobank to create Laurence do Rego has been reinstated to The Ecobank spirit, which took the Group significant shareholder value in the the position of Group Executive Director from a small bank in the 1980s in Togo to longer term. of Finance and Risk. We also recently one of Africa’s largest financial institutions announced the co-option of Hewitt Benson today, is one of resilience and determination. Financial results as a non-executive director. He will be the Fundamentally, all of our people are Despite a challenging operating environment Board representative for Asset Management galvanized around the simple but ambitious in 2013, Ecobank registered impressive Corporation of Nigeria (AMCON), which goal of building a world-class, pan-African organic growth in terms of both revenues currently holds a 10.4% equity interest in ETI. operation. The Board is committed to and assets. Revenue broke through the establishing the highest standards of US$2 billion mark, whilst strong growth in As a result of these changes, Ecobank’s Board corporate governance that enable effective both customer loans and deposits led to a currently comprises five executive officers decision-making, with clear responsibilities. 13% year-on-year increase in total assets and eight non-executive directors. At our We will learn from the past, address all to US$22.5 billion. recent EGM, shareholders agreed to limit the of the issues and lay firm foundations for size of the Board to a maximum of 15. Our Ecobank’s continued success in the next Our continued focus on efficiency across our new Search Committee (which includes two 25 years. diversified platform is bearing fruit, with the former chairmen, honorary president Gervais cost-to-income ratio improving in each of Djondo and Chief Philip Asiodu, two current our six geographical clusters in Africa. Board members and three shareholder However, the 2013 results have been representatives) has been charged with impacted by our conservative decision to finding a permanent Chairman with the take a one-off US$165 million provision banking industry stature and experience against certain legacy non-performing assets to reinvigorate the Board and ensure that in Nigeria. This led to a 34% decline in pre- Ecobank’s strategic direction is implemented tax profit to US$222 million in comparison effectively. The reconstituted Board should with 2012 and a 48% decline in net profit to also reflect Ecobank’s cultural diversity, with a more balanced gender and professional mix. US$148 million. André Siaka The Search Committee will also recommend Interim Chairman As our parent company, Ecobank potential new Board members for Transnational Incorporated, generated no shareholder approval at the Annual General distributable earnings in 2013, we are unable Meeting, to be held in June. to propose a dividend payment for the financial year in review. Appreciation On behalf of the Board and all of our Board and management changes stakeholders, I wish to express a sincere vote Mr Kolapo Lawson stepped down as Group of thanks to Mr Albert Essien for taking the Chairman in October and retired from the helm at Ecobank. With a wealth of African Board at the end of 2013, after more than banking and management experience and 20 years of dedicated service. During this having been a loyal servant to the Group for period, he was instrumental in bringing into over 20 years, we believe there is no-one fruition his father’s and the other founding better qualified to lead Ecobank at this stage. members’ vision of a genuinely African He has the business acumen, integrity and, private sector bank. On behalf of the Board, indeed, passion, to re-establish Ecobank as employees and shareholders, I should like the proud and successful institution it always to express our appreciation to Kolapo for has been and always will be. his entrepreneurial spirit, leadership and unwavering commitment to Ecobank. 2013 proved to be a testing year for everyone associated with the Group. We In addition to the departure of Mr Thierry were particularly struck by the forbearance Tanoh as CEO, three of the Group’s non- and rectitude of Ecobank’s staff. On behalf 14 Board and Management Reports Ecobank Group – Abridged Annual Report 2013 Directors’ Report
Ecobank Transnational Results Directors The Group’s profit after tax stood at US$148 The names of the directors of the Company Incorporated (ETI), the million. Net profit attributable to the parent appear on pages 16-17 of this abridged company was US$96 million. Annual Report. parent company of the The details of the results for the year are set As of 31 December 2013, the Board was Ecobank Group, is a bank out in the consolidated financial statements. composed of 17 directors: 11 non-executive The Board of Directors approved the financial and 6 executive directors. holding company. Its statements of the Company and the Group for the year ended 31 December 2013 The Board of Directors met eight times principal activity is the at the meeting of the Board held on during the year. The Governance 25 April 2014. Committee, the Audit and Compliance provision of banking Committee and the Risk Committee each and financial services Messrs André Siaka and Albert Essien were met four times to deliberate on issues under authorized to sign the accounts on behalf of their respective responsibilities. through its subsidiaries the Board. On 29 of October 2013, Mr Kolapo Lawson and affiliates. International Financial stepped down as Chairman, with Reporting Standards the Vice-Chairman, Mr André Siaka, taking The accounts of both the parent company over as interim Chairman of the Board of Business review and the Group are prepared in accordance Directors on the same date. Mr Lawson During 2013, we continued to focus on the with International Financial Reporting retired from the Board on 31 December 2013 delivery of our key strategic pillars, namely Standards (IFRS). For 2013, the Group has and the Board would like to thank him for his providing an outstanding customer service classified certain businesses as held for sale considerable service to the Group since experience to our clientele, improvement of in line with IFRS 5 (non-current assets held its founding. long-term shareholder value and return as for sale and discontinued operations). We On 6 August 2013, Laurence do Rego, Group well as being the employer of choice in the have therefore restated our 2012 financials Executive Director for Finance and Risk, was markets where we operate. on the same basis to facilitate year-on-year suspended by the Board and did not play comparisons (refer to note 29 of our financial In 2013, South Sudan was added to the a further part in Board activities for the statements in the full Annual Report for Group’s network of banking operations while remainder of 2013. She was subsequently more detail). a representative office was also opened in reinstated on 11 March 2014. Addis Ababa, Ethiopia, bringing the number Dividend of presence countries to 39. Corporate governance The directors do not recommend the and compliance A detailed review of the business of the payment of a dividend, given the parent company made a loss for the year 2013. There has been considerable focus on the Group during the 2013 financial year is Group’s corporate governance practices, contained in the Business and Financial particularly at the Board level, this year. Review section of the full Annual Report. Capital The authorized share capital of the Company Following a series of publications in the is US$1.277 billion, divided into 50 billion local and international media from July 2013 Acquisitions and divestitures regarding alleged breaches of corporate The bank did not undertake any acquisitions ordinary shares of 2.5 US cents per share and 1.07 billion preference shares of 2.5 US cents. governance and allegations against the during 2013. We divested certain non-core Board of Directors and certain principal assets, including majority stakes in the Life At the beginning of 2013, there was a total of 17.21 billion ordinary shares in issue. officers of the Company, the Securities Assurance and General Insurance businesses and Exchange Commission (SEC) Nigeria of the former Oceanic Bank, both sold to During the year, there was no change in the undertook an independent review of these Old Mutual. We also sold majority stakes in number of shares in issue. allegations through the professional services Oceanic Health and Oceanic Homes. firm KPMG. The ordinary shares of the Company are traded on the three West African stock The purpose of the review was to ascertain exchanges, namely the BRVM (Bourse the Company’s compliance with the SEC’s Régionale des Valeurs Mobilières) in Abidjan, Corporate Governance Code as well as the Ghana Stock Exchange of Accra and the best practice and also to determine the Nigerian Stock Exchange of Lagos. veracity of the various allegations against principal officers of the Company. The Group also commissioned IMD and EY to conduct Board and Management Reports 15 Ecobank Group – Abridged Annual Report 2013
independent reviews of our corporate Responsibilities of Directors governance and assist with responding to The Board of Directors is responsible regulatory reviews. for the preparation of the financial statements, which give a true and fair Following the SEC/KPMG review, an view of the state of affairs of the company Extraordinary General Meeting of at the end of the financial period and of shareholders was held on 3 March 2014 the results for that period. to approve a 51-point Governance Action Plan designed to address the areas These responsibilities include ensuring that: highlighted by the SEC/KPMG. • Adequate internal control procedures The Company maintains corporate policies are instituted to safeguard assets and standards designed to encourage good and to prevent and detect fraud and and transparent corporate governance, avoid other irregularities potential conflicts of interest and promote • Proper accounting records are maintained ethical business practices. These policies are being updated where relevant as part of the • Applicable accounting standards above plan, and further details are provided are followed in the Corporate Governance Report in the • Suitable accounting policies are used and full Annual Report. consistently applied • The financial statements are prepared The Board and the Group are committed to on a going concern basis unless it is improving the governance of the institution inappropriate to presume that the and are working closely with regulators and Company will continue in business. other stakeholders to rebuild confidence in this area. Independent External Auditors The Joint Auditors, PricewaterhouseCoopers, Subsidiaries Lagos, Nigeria and PricewaterhouseCoopers, In 2013, the Group extended its African Abidjan, Côte d’Ivoire have indicated their operations by opening an affiliate in South willingness to continue in office. Sudan and a representative office in Addis Ababa, Ethiopia. This completes our coverage A resolution will be presented at the 2014 of the East African Community (EAC) cluster. AGM to authorize the directors to determine Our investment banking subsidiary, Ecobank their remuneration. Development Corporation, has also opened an office in Kenya, adding to its operations in Dated in Lomé, 30 April 2014 Ghana, Nigeria, Côte d’Ivoire and Cameroon. By Order of the Board, eProcess International SA, our shared services and technology subsidiary, continued to provide the technology infrastructure and platform for the Group.
ETI has a majority equity interest in all its subsidiaries and provides them with Samuel K. Ayim management, operational, technical, Company Secretary training, business development and advisory services.
Post balance sheet events There were no post balance sheet events that could materially affect either the reported state of affairs of the Company and the Group as at 31 December 2013 or the profit for the year ended on the same date which have not been adequately provided for or disclosed. 16 Board and Management Reports Ecobank Group – Abridged Annual Report 2013 Board of Directors
4 5 2 3
6
1
1 Evelyne Tall 3 Albert Essien 5 Eddy Ogbogu Deputy Group Chief Group Chief Executive Officer Group Executive Director, Executive Officer, Head of Corporate and Operations and Technology Chief Operating Officer, Investment Bank Nigerian Group Executive Director Ghanaian Senegalese 6 Laurence do Rego 4 Patrick Akinwuntan Group Executive Director, 2 André Siaka Group Executive Director, Finance Interim Chairman Head of Domestic Bank Beninese Cameroonian Nigerian Board and Management Reports 17 Ecobank Group – Abridged Annual Report 2013
7 10 9 12 11 8
7 Bashir Mamman Ifo 9 Assad J. Jabre 11 Sipho Mseleku Other directors as at Non-executive Director Non-executive Director Non-executive Director 31 December 2013* Nigerian French South African Kolapo Lawson Thierry Tanoh 8 Kwasi A. Boatin 10 Daniel Matjila 12 Sena Agbayissah Isyaku Umar Non-executive Director Non-executive Director Non-executive Director Babatunde A.M. Ajibade Ghanaian South African French Paulo Gomes
* Not pictured and no longer directors of Ecobank Group 18 Board and Management Reports Ecobank Group – Abridged Annual Report 2013 Group Chief Executive’s review
“Together with my experienced executive and senior management team, the leadership rhythm of the institution has been re‑established.”
Whilst 2013 was a particularly challenging year, the underlying financial results are testament to Ecobank’s strong franchises across Africa and excellent products and services. Robust organic growth of 16% took net revenue to over US$2 billion for the first time and we increased our balance sheet during the year. The decision to make full provision for legacy assets in Nigeria was a prudent one. I recognize that the lack of a dividend this year will be a disappointment to our many shareholders, but the Board is “Delivering value for our shareholders is critical – we committed to paying a dividend for 2014.
know that we have to improve our cost-to‑income Delivering value for our shareholders is ratio and generate better returns from our critical – we know that we have to improve our cost-to-income ratio and generate better pan‑African network.” returns from our pan-African network. We are driving efficiencies within both our retail To have the opportunity to lead Ecobank is and wholesale businesses and are seeing most humbling, and in taking on the role the benefits of operational synergies from I appreciate the support and trust of the our major acquisitions in Nigeria and Ghana. Board and our major shareholders. This Our return on equity is set to improve as responsibility comes at a challenging time Nigeria delivers to its full potential, our given recent governance issues, but the newer geographical clusters (notably East fundamentals of our business are strong and Southern Africa) gain appropriate scale and I am excited about the huge potential and our focus on operational efficiencies of our unique platform, built over the across the Group feeds through to improved past 25 years. I have already begun the profitability. We have made a very promising essential groundwork of reassuring our staff, start to 2014, which gives me confidence in shareholders, regulators, depositors and Ecobank’s ability to deliver a much-improved other customers of Ecobank’s organizational performance for the current financial year. and financial stability. Together with my experienced executive and senior Financial Performance management team, the leadership rhythm of Overall, despite the regulatory headwinds in the institution has been re-established. This Nigeria, we achieved most of the financial is essential to ensure our staff work together targets that we set out at the start of 2013. towards a common goal. Demonstrating On the balance sheet side, we saw good this stability and unity of purpose opportunities to grow risk assets, particularly amongst Ecobankers allows confidence to be in the regional corporate business. Our net restored, and shows our stakeholders that customer loans increased by 21% during the Group is back to “business as usual”. the year to over US$11 billion, exceeding The resilience of our institution has been our target of approximately 10% growth. tested during the governance crisis and Customer deposits grew by 13% to US$16.5 we have come out stronger. billion and whilst we did not reach our Board and Management Reports 19 Ecobank Group – Abridged Annual Report 2013
growth target of 20%, we ended the year We have segmented our personal banking strongly and improved our cost of funds. business along customer-centric lines and Clearly the legacy assets addressed at the increased the partnership with our corporate end of the year have had an adverse impact banking business to deliver banking services on overall asset quality; we ended 2013 with right across the value chain of employees, a non-performing loan ratio of 6.2% against contractors and suppliers of our large our target for the year of around 5.6%. This corporate customers. For 2014, we will ratio has subsequently improved to 5.8% at continue to focus on growing our customer the end of the first quarter of 2014 and our base by delivering exceptional customer conservative approach to provisioning has service. We expect to see growth in our increased the coverage ratio to 79% at year- deposit base with lower cost of funds and end, above our guidance of 75%. selectively to expand our loan book.
Group revenue growth was well balanced As part of our efficiency drive, we are by region and between interest income and encouraging our customers to migrate fees and commissions, exceeding our 15% their routine transactions to our electronic target. Our newer geographical clusters of platforms including ATMs, Internet and Central, East and Southern Africa registered Mobile Banking. Mobile financial services net revenue increases of around 30% or have huge potential in Africa, where a mere more. Equally, our emphasis on efficiency 24% of the population has a bank account continues to produce results, with the cost- but 75% have a mobile phone. To capture to-income ratio improving in all our African this, we have formed multi-country alliances clusters and pre-impairment profit rising by with leading mobile operators such as Bharti 21%. However, although the Group’s cost-to- Airtel and MTN and are putting in place “Although the Group’s income ratio fell by more than 1% year-on- differentiated value propositions to deliver year to 70%, there is still much more to be a distinctive customer experience. cost‑to-income ratio fell by achieved if we are to meet our medium term more than 1% year-on-year objective of reducing this towards 60%. We continue to innovate to reduce transaction costs and to reach out to the to 70%, there is still much Our profitability for 2013 has clearly been wider unbanked community. For example, more to be achieved if we impacted by increased impairment provisions to enhance customer convenience, we are to meet our medium which, including the US$165 million provision have rolled out our retail internet banking on legacy loans in Nigeria, took up more than service and our Chip and Pin cards across 33 term objective of reducing half of our pre-impairment profit. Combined African countries, launched our MobileMoney this towards 60%.” with a higher effective tax rate, this led to offering in 12 countries and streamlined the the sharp (45%) fall in net profit for the year approval process for personal loans. from continuing operations. Diluted earnings per share similarly declined by 57% to 0.55 Our Corporate and Investment Banking US$ cents. We were unable to declare a cash division has also recorded very strong dividend for 2013 as ETI, the parent company year-on-year revenue growth, supported of the Group, made a loss of US$7.6m for by balance sheet expansion, deepening the year. customer relationships and an enhanced sales culture. Within Corporate Banking, A return on equity of 6.9% for 2013 is clearly our strategic focus is to grow our regional well short of the performance expected, but business, leveraging Africa’s trade corridors, we are confident that with the sustained to extend the reach of Omni, our corporate growth seen so far in 2014 we are on our Internet banking platform, and to deepen our way to achieving double digit return on customer relationships to promote equity. Our unrelenting focus to bring the cross selling. Nigerian operations to deliver superior performance is central to achieving International businesses and non-profit mid-teens and greater returns in the organizations are expanding the range medium-term. of African countries they operate in, increasing demand for our foreign exchange Business Segments and treasury products. Then, as African Domestic Bank, which includes our retail, companies expand further beyond national SME, local corporate and public sector boundaries, seeking larger amounts of capital businesses, has had another year of growth, that a single lender might not be able to focused on developing alternative channels provide, demand for syndicated loans is and improving efficiency and service quality. also expected to increase. Ecobank is in the 20 Board and Management Reports Ecobank Group – Abridged Annual Report 2013
vanguard of Middle African banks that are injected US$25 million of additional capital A Group Strategic Project Implementation progressively cooperating to finance major into Ecobank Kenya. The Group intends Office was established in early 2013 to track regional transactions and infrastructure to further capitalize the Kenyan business the performance of a number of programs projects. We have recently appointed a in 2014 so it can act as a strong hub for that have been instigated in the areas of new Group Head of Investment Banking to our operations in the region. We will also customer service, developing our staff and oversee the development of our investment develop our investment banking operations, improving financial performance. We have banking business. We are also looking to having acquired Iroko Securities, the already seen tangible results from this, such build up our asset management and wealth investment advisory firm. as improvements in ATM uptime, sales force management activities, which, although effectiveness and loan processing times. currently at an embryonic stage, have great We expanded our presence in East Africa However what is particularly important is longer-term potential. in 2013, commencing banking operations the development of our people. Our staff in South Sudan and opening a new are key to our success as a Group, and I echo Geographical Clusters representative office in Ethiopia. Both South the Chairman’s thanks to all Ecobankers We divide our operations into seven Sudan and Ethiopia have expressed an for staying focused and delivering solid geographic regions; six clusters within Africa interest in joining the East African Community results through the recent difficult times. and our network of four international offices (EAC), Africa’s fastest growing trading bloc. We have made significant process with our (Paris, London, Dubai and Beijing). This presents major trade finance and people strategy in 2013, including a new banking opportunities for Ecobank in the performance management system and Despite the depreciation of the Cedi, Ghana longer term, as well as the potential to branch manager training programs and we and the Rest of West Africa region has again reach out to the unbanked population in have more planned for 2014 to allow us to been the Group’s outstanding performer, both countries with mobile banking and attract, retain and develop the best. registering a 34% increase in net profits microfinance services. overall, with Ghana achieving an impressive However, there are still key areas that need return on equity of 37%. Francophone West Southern Africa is now sustainably profitable to be addressed, and I will not shy away Africa, a consistently profitable business for as a cluster, led by the strong performance of from tackling these directly. I also look Ecobank, benefitted from the recovery in DR Congo, which more than doubled profits. forward to working with the new Chairperson economic activity in Mali and strong lending We were awarded a banking license in as selected by shareholders at this June’s activity in Côte d’Ivoire and Burkina Faso. Mozambique in late 2013 and have recently AGM and welcoming other new Board acquired a majority stake in ProCredit’s members to the Group. Nigeria’s 17% year-on-year growth in net subsidiary there, which specializes in SME revenue was encouraging. An increase in To enhance existing efficiency initiatives, banking and finance, to accelerate our entry lending activity within the power, telecoms we will re-examine more structural issues, into the country. and cement sectors led to an 18% growth in such as growth in back-office staff relative net interest income. However, the increase Lastly, we are continuing to build on our to those facing customers, and how we in the cash reserve ratio on public sector international presence. Our Paris subsidiary, optimize this mix. Also, across our diverse deposits from 12% to 50% impeded our EBI SA, has recently had its banking license countries of operation, we must enhance ability to grow earning assets. Operating upgraded to that of a specialized credit alignment of our subsidiary banks’ business expenses declined by 9% as a result of institution, thereby allowing it to take models with the local market opportunity so our continued focus on cost control and deposits from corporate, institutional and we can optimize our return on equity in each location. We have learnt from experience improving branch efficiency. Given the one- NGO clients with operations across Africa. off provision discussed earlier, as well as a that “one size does not fit all”. We are also working on the upgrade of our conservative review of our portfolio, loan London representative office to a full branch impairments increased significantly. On asset quality, much progress has been of our Paris operation. made since the decision to centralize the Revenues from Central Africa continue to Group’s risk management in 2010, but we grow at strong double-digit rates and with Strategy will further embed our controls and risk the cluster profit for the year up 150%, it Having largely established our pan-African management framework to ensure more is now a material contributor to Ecobank’s footprint, the focus now will be on boosting rigorous monitoring. For 2014 we have overall returns. We also are seeing increases efficiency in all areas of the business, committed to more detailed targets in this in market share in this region, led by including at ETI, our parent company. The area, namely an NPL ratio of less than 5% Cameroon, Chad and Congo Brazzaville. Group’s cost-to-income ratio of around 70% and a cost of risk of under 2%. Equatorial Guinea was profitable in its first is still too high and we are focusing hard full year of operation. on reducing this to the high 60s percent for Above all, we need to ensure that the Group 2014 and nearer to 60% in the medium- is sufficiently capitalized and is optimizing Although East Africa managed to reduce its term. To achieve this, we will need to grow the allocation of that capital. We will operating loss marginally in 2013, strategic revenues as well as control costs, and we are remain compliant with regulatory capital challenges remain. To start addressing these, targeting 15% or more growth in revenues requirements in all our subsidiaries, including we have strengthened management and as well as loans and deposits for 2014. scope for growth in the business where the Board and Management Reports 21 Ecobank Group – Abridged Annual Report 2013
returns are attractive. We will also continue talented team behind me who can now focus to make the case to shareholders for our on driving the business forward, providing “We do not underestimate entry into Mozambique, which provides sea excellent customer service and improving the challenges ahead access to other landlocked countries in the efficiency and returns. For Ecobank is so SADC region and completes our presence much more than a bank – it is a symbol but, in learning from the there. Similarly, planned investments in of pan-African cooperation, with a unique recent past, Ecobank will Kenya and Angola are warranted: alongside platform, strong fundamentals and boasting undoubtedly emerge as a Nigeria and Ghana, they make up the big the very best of Africa’s talent. Together, four Middle African economies with deep and with the continued support of our loyal stronger institution. ” pools of banking revenue. We are convinced customers, partners and shareholders, I am of the strategic value to Ecobank of investing sure we will take this great pan-African bank in these businesses, which will help secure from strength to strength. the medium- to long-term sustainable growth of the Group.
We are very conscious of per-share return metrics and so as we plan our capital strategy, we will look to raise non-dilutive Tier II capital, both at the Group level and for Ecobank Nigeria. Our capital mix will also be influenced by whether our existing convertible lenders become shareholders. In this regard our alliance with Nedbank, who have rights to take up to a 20% ownership, is key and we would look forward to welcoming them as a major shareholder Albert Essien and board member in addition to our ever Group Chief Executive Officer growing business partnership.
Conclusion The prospects for banking across Middle Africa remain very buoyant, driven by sustained high rates of economic growth, increasing levels of intra-African trade, and huge unmet needs for basic financial services and the emergence of new mobile technologies to provide them. Ecobank remains uniquely positioned to take advantage of these fundamental trends, which will also provide specific opportunities in corporate banking such as online cash and treasury management and structured commodity trade finance.
However regrettable 2013’s corporate governance issues may have been, they have provided us with a window of opportunity to refresh and improve our processes and systems, particularly at Board level. Ultimately, strong corporate governance enhances a company’s sustainable business performance, which is in the interests of all our stakeholders.
We do not underestimate the challenges ahead but, in learning from the recent past, Ecobank will undoubtedly emerge as a stronger institution. I have a loyal and 22 Board and Management Reports Ecobank Group – Abridged Annual Report 2013 Business report: Corporate and Investment Bank
The past year proved to be very testing, We are relentless in our commitment with a combination of regulatory increases to deliver superior customer service. in cash reserve requirements for public We strive to deepen our client relationships sector deposits in Nigeria and intensified by listening to their needs and working competition across our markets, as well as together to find solutions. We remain focused our own highly publicized issues. on strengthening the effectiveness of our sales process and business operations, Despite these challenges, Corporate and investing further in our technology platform Investment Bank (CIB) generated revenues as well as on attracting and retaining of US$1.0 billion, a year-on-year increase high-caliber, experienced professionals. of some 41%, supported by expansion of the balance sheet, improved customer Finally, I should like to thank our customers relationship management and an enhanced and partners for the faith they have placed sales culture. The business benefitted from in Ecobank, the institution and its people, “Our strategic focus is significant growth in financing transactions, during what has been a difficult year for with higher volumes registered across most the Group. I must also pay tribute to the to continue to grow product lines, improved customer retention dedication of each and every member of our regional business, and acquisition, and increased collaboration staff, whose hard work, professionalism and between our local subsidiaries in Africa. This perseverance have contributed to sustaining leveraging Africa’s trade resulted in strong growth in both customer our business relationships in uncertain times. deposits (up 23% to US$5.6 billion) and net We can all now focus on unleashing the corridors, to extend customer loans (up 33% to US$6.3 billion). full potential of our unrivalled pan-African corporate and investment banking platform. the reach of Omni, For the year ahead, our strategic focus is to continue to grow our regional business, our corporate internet leveraging Africa’s trade corridors, to extend the reach of Omni, our corporate internet banking platform, banking platform, and to deepen our and to deepen our customer relationships to promote cross- selling. Our unique pan-African footprint customer relationships.” will continue to be a key differentiator in growing our client base. Indeed, Ecobank is strategically positioned to take advantage of the increasing regionalization and intra- African trade that underpins the continent’s long-term growth prospects. We will make further progress in facilitating and supporting trade and banking transactions both within Albert Essien Africa and with its international trade and Group Chief Executive Officer development partners. Head of Corporate and Investment Bank Board and Management Reports 23 Ecobank Group – Abridged Annual Report 2013 Business report: Domestic Bank
With our pan-African network now extending from cheaper deposits and expand our loan across 35 countries, over 1,250 branches, book. Our Personal Banking strategy also 2,300 ATMs and 10,000 POS terminals, we complements our existing focus on the are leveraging our unparalleled distribution entire value chain of our corporate and public platform to deliver quality payment sector client base, including their employees, services, collections, deposits and loans to suppliers and distributors, to significantly our expanding customer base. We have improve our cross-sell ratio. Our focus on this established clear business verticals (public value chain across our business verticals is also sector, local corporates, SMEs, personal yielding positive results in terms of improved banking and microfinance) to which we customer satisfaction. One way we track this offer a full range of convenient, reliable and is via our Net Promoter Score, i.e. whether innovative products and services. Our aim is customers would recommend our service, now to significantly grow cheaper deposits, which is beginning to show improvements good quality assets and revenues whilst across our network. “Our aim is now to reducing the cost-to-serve in order to deliver improved efficiency and profitability. In line with our commitment to financial significantly grow inclusion, we have also deepened cheaper deposits, The Domestic Bank achieved two notable our collaboration with our partners in milestones in 2013 despite regulatory microfinance, major telcos, international cards good quality assets headwinds in our main markets during the associations and global remittance players as year; revenues surpassed the US$1 billion we leverage electronic and mobile platforms and revenues whilst mark and, for the first time, we exceeded to reach the underbanked and unbanked 10 million customers. We grew our alternative across the continent. reducing the cost-to- channels strongly, with over 600 more ATMs deployed during 2013 and 29% more In 2014, we will deepen our customer-centric serve in order to deliver cards issued, as well as increasing customer approach whilst providing tailored products, deposits by over US$800 million, or 8%. services and channels to enhance customer improved efficiency loyalty and advocacy, thereby positioning and profitability.” During 2013 we implemented a three- Ecobank as the pan-African retail bank of pronged strategic approach designed to choice. Our emphasis on people development position us as ‘best-in-class’ in our markets and training will also continue as we have through customer service excellence, begun the second phase of our branch developing our people and improving management certification program, covering shareholder value. These included training and the next 400 branch managers. We will also certification of our ‘Top 100’ branch managers continue to leverage technology to migrate and roll-out of the Sales Force Effectiveness low-value transactions to electronic channels (SFE) program to embed best-in-class tools to improve productivity and efficiency. and practices within our sales teams. We have extended our network of ‘credit factories’ to We assure our 10+ million customers of our reduce the turnaround time for retail loan commitment to excellent banking services origination, processing and disbursement, and thank them all for their continued loyalty as well as introduced standardized SME loan and patronage. As the leading pan-African products, bringing improved customer service retail banking network, we are positive about and asset quality. Additionally, we made our the potential of our business. Our staff are key remittance products such as Rapidtransfer passionate about Africa and are set to serve and Western Union available via alternative our customers better and deliver superior channels, rolled out Ecobank MobileMoney shareholder returns. The future is truly pan- and Mobile banking in ten more countries and African, and Ecobank is the pan-African bank. significantly improved the uptime of our ATMs and electronic banking channels to better serve our customers on a 24/7 basis.
At the end of 2013, we introduced Personal Banking services targeted at our High Net Worth, Mass Affluent, Mass Market and Youth customer segments in order to benefit from the rising profile of the middle class and youth in Africa. We have designed specific Patrick Akinwuntan customer-centric offerings for each segment Group Executive Director in order to improve our wallet share, benefit Head of Domestic Bank 2424 Financial Statements Ecobank Group – Abridged Annual Report 2013
Financial Statements
Improving infrastructure of all types is one of Africa’s key challenges, but also one of its biggest opportunities.
Ecobank is using its financial resources and expertise to support vital infrastructure development across our countries, including both public and private sector projects.
Image taken from Ecobank’s Corporate and Investment Bank advertising campaign, Q1 – 2014. Financial Statements 25 Ecobank Group – Abridged Annual Report 2013 26 Financial Statements Ecobank Group – Abridged Annual Report 2013 Statement of Directors’ responsibilities
Responsibility for annual consolidated financial statements The directors are responsible for the preparation of the consolidated financial statements for each financial year that give a true and fair view of the state of the financial affairs of the Group at the end of the year and of its profit or loss. This responsibility includes ensuring that the Group:
(a) keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Company and its subsidiaries;
(b) establishes adequate internal controls to safeguard its assets and to prevent and detect fraud and other irregularities; and
(c) prepares its consolidated financial statements using suitable accounting policies supported by reasonable and prudent judgments and estimates, are consistently applied.
The directors accept responsibility for the annual consolidated financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with International Financial Reporting Standards.
Nothing has come to the attention of the directors to indicate that the Company and its subsidiaries will not remain a going concern for at least twelve months from the date of this statement.
The directors are of the opinion that the consolidated financial statements give a true and fair view of the state of the financial affairs of the Company and its subsidiaries and of its profit or loss. The directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of the financial statements, as well as adequate systems of internal financial control. Approval of annual consolidated financial statements The annual consolidated financial statements were approved by the Board of Directors on 25 April 2014 and signed on its behalf by:
André Siaka Albert Essien Interim Chairman, Board of Directors Group Chief Executive Officer Financial Statements 27 Ecobank Group – Abridged Annual Report 2013 Report of the Independent Auditor to the Members of Ecobank Transnational Incorporated
Report on the consolidated financial statements We have audited the accompanying consolidated financial statements of Ecobank Transnational Incorporated and its subsidiaries (“the Group”) which comprise the consolidated statement of financial position as of 31 December 2013 and the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of cash flows, a summary of significant accounting policies and other explanatory notes. Directors’ responsibility for the financial statements The directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an independent opinion on the consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion In our opinion the accompanying consolidated financial statements give a true and fair view of the financial position of the Group as of 31 December 2013 and of its profits and cash flows for the year then ended in accordance with International Financial Reporting Standards.
PricewaterhouseCoopers PricewaterhouseCoopers Chartered Accountants Chartered Accountants Lagos, Nigeria Abidjan, Côte d’Ivoire 29 April 2014 29 April 2014 28 Financial Statements Ecobank Group – Abridged Annual Report 2013 Consolidated income statement
(All amounts in thousands of US dollars unless otherwise stated)
Year ended 31 December 2013 2012 Restated
Interest income 1,599,756 1,348,086 Interest expense (548,998) (499,396) Net interest income 1,050,758 848,690
Fee and commission income 626,548 515,228 Fee and commission expense (25,402) (26,809) Net fee and commission income 601,146 488,419
Net trading income 308,960 255,707 Net losses from investment securities (1,581) (4,279) Other operating income 44,173 141,462 Other income 351,552 392,890
Operating income before impairment loss 2,003,456 1,729,999
Impairment losses for loans and advances (362,628) (147,910) Impairment losses on other financial assets (14,102) (7,441) Impairment losses on financial assets (376,730) (155,351)
Operating income after impairment loss 1,626,726 1,574,648
Staff expenses (639,459) (567,464) Depreciation and amortization (134,898) (131,032) Other operating expenses (630,607) (537,510) Total operating expenses (1,404,964) (1,236,006)
Operating profit 221,762 338,642
Share of profit/(loss) of associates 16 (613)
Profit before income tax 221,778 338,029
Income tax expense (65,728) (56,207)
Profit for the year from continuing operations 156,050 281,822
Profit for the year from discontinued operations (8,277) 4,910
Profit for the year 147,773 286,732
Profit attributable to: Owners of the parent (total) 95,541 249,743 • Profit for the year from continuing operations 102,932 246,311 • Profit for the year from discontinued operations (7,391) 3,432
Non-controlling interests (total) 52,232 36,989 • Profit for the year from continuing operations 53,118 35,511 • Profit for the year from discontinued operations (886) 1,478
147,773 286,732
Earnings per share for the profit from continuing operations attributable to owners of the parent during the year (expressed in US cents per share): • Basic 0.60 1.67 • Diluted 0.55 1.28
Earnings per share for the profit from discontinued operations attributable to owners of the parent during the year (expressed in US cents per share): • Basic (0.04) 0.02 • Diluted (0.03) 0.02
The notes detailed in the full Annual Report are an integral part of these consolidated financial statements. Financial Statements 29 Ecobank Group – Abridged Annual Report 2013 Consolidated statement of comprehensive income
(All amounts in thousands of US dollars unless otherwise stated)
Year ended 31 December 2013 2012
Profit for the year 147,773 286,732
Other comprehensive income:
Items that may be subsequently reclassed to profit or loss: Exchange difference on translation of foreign operations (55,754) (32,443)
Available-for-sale investments: Net valuation (loss)/gain taken to equity (54,341) 58,555 Reclassified to income statement – (49)
Taxation relating to components of other comprehensive income that may be subsequently reclassed to profit or loss 12,013 (42,990) (98,082) (16,927)
Items that will not be reclassed to profit or loss: Property and equipment – net revaluation gain/(loss) 2,493 (1,143)
Taxation relating to components of other comprehensive income that will not be reclassed profit or loss (517) (34) 1,976 (1,177)
Other comprehensive income for the year, net of tax (96,106) (18,104)
Total comprehensive income for the year 51,667 268,628
Total comprehensive income attributable to: Owners of the parent (2,649) 230,371 • Total comprehensive income for the year from continuing operations 4,742 226,939 • Total comprehensive income for the year from discontinued operations (7,391) 3,432
Non-controlling interests 54,317 38,257 • Total comprehensive income for the year from continuing operations 55,203 36,779 • Total comprehensive income for the year from discontinued operations (886) 1,478
51,667 268,628
30 Financial Statements Ecobank Group – Abridged Annual Report 2013 Consolidated statement of financial position
(All amounts in thousands of US dollars unless otherwise stated)
As at 31 December 2013 2012 Restated
Assets Cash and balances with central banks 2,877,868 1,981,625 Treasury bills and other eligible bills 1,127,927 825,883 Financial assets held for trading 114,917 92,854 Derivative financial instruments 141,346 143,417 Reinsurance assets – 5,262 Loans and advances to banks 1,312,150 2,175,156 Loans and advances to customers 11,421,605 9,440,945 Investment securities: available-for-sale 1,893,489 2,331,748 Pledged assets 1,135,434 700,054 Investment in associates 21,993 7,530 Other assets 689,913 580,110 Intangible assets 496,748 503,149 Property and equipment 872,145 861,316 Investment properties 168,048 196,588 Deferred income tax assets 122,747 93,746 22,396,330 19,939,383
Assets held for sale 136,123 –
Total assets 22,532,453 19,939,383
Liabilities Deposits from banks 706,953 662,201 Due to customers 16,489,904 14,620,478 Other deposits 677,960 369,360 Derivative financial instruments 1,454 129 Insurance liabilities – 5,262 Borrowed funds 1,303,406 1,239,683 Other liabilities 926,098 732,659 Provisions 28,511 26,040 Current income tax liabilities 63,818 44,151 Deferred income tax liabilities 44,450 58,283 Retirement benefit obligations 8,019 7,220 20,250,573 17,765,466
Liabilities held for sale 147,232 –
Total liabilities 20,397,805 17,765,466
Equity Equity attributable to the owners of the parent Share capital and premium 1,409,001 1,409,001 Retained earnings and reserves 527,435 597,187 1,936,436 2,006,188
Non-controlling interests 198,212 167,729
Total equity 2,134,648 2,173,917
Total liabilities and equity 22,532,453 19,939,383
The financial statements were approved for issue by the Board of Directors on 25 April 2014 and signed on its behalf by:
André Siaka Albert Essien Interim Chairman, Board of Directors Group Chief Executive Officer Financial Statements 31 Ecobank Group – Abridged Annual Report 2013 Consolidated statement of changes in equity
(All amounts in thousands of US dollars unless otherwise stated)
Non- Attributable to equity holders controlling of the Company Total interests Total equity Share capital Retained and premium earnings Other reserves
At 01 January 2012 1,080,186 315,209 (41,190) 1,354,205 105,131 1,459,336
Net changes in available-for-sale investments, net of tax – – 15,515 15,515 – 15,515 Foreign currency translation differences – – (33,711) (33,711) 1,268 (32,443) Net gains on revaluation of property – – (1,177) (1,177) – (1,177)
Other comprehensive income for the year – – (19,373) (19,373) 1,268 (18,105) Profit for the year – 249,743 – 249,743 36,989 286,732
Total comprehensive income for the year 249,743 (19,373) 230,370 38,257 268,627
Dividends relating to 2011 – (55,612) – (55,612) (22,525) (78,137) Adjustments to opening retained earnings – 44,715 – 44,715 – 44,715 Transfer to general banking reserves – (22,791) 22,791 – – – Transfer to statutory reserve – (3,748) 3,748 – – – Reclassification of share option reserve – 181 (181) – – – Gain on shares held in Ecobank Ghana used as purchase consideration – 102,495 – 102,495 – 102,495 Share options granted – – 1,200 1,200 – 1,200 Additional non-controlling interest from Ecobank Ghana – – – – 31,422 31,422 Net Proceeds from shares issued: • Private placement 350,000 – – 350,000 15,444 365,444 Refund of deposit for shares (3) (3) (3) Treasury shares (13,299) – – (13,299) – (13,299) Share issue expenses (7,883) – – (7,883) – (7,883)
At 31 December 2012/01 January 2013 1,409,001 630,192 (33,005) 2,006,188 167,729 2,173,917
Net changes in available-for-sale investments, net of tax – – (40,685) (40,685) (40,685) Foreign currency translation differences – – (57,839) (57,839) 2,085 (55,754) Net gains on revaluation of property – – 1,976 1,976 – 1,976
Other comprehensive income for the year – – (96,548) (96,548) 2,085 (94,463) Profit for the year – 95,541 – 95,541 52,232 147,773
Total comprehensive income for the year – 95,541 (96,548) (1,007) 54,317 53,310
Dividends relating to 2012 – (68,879) – (68,879) (23,834) (92,713) Transfer to general banking reserves – (24,913) 24,913 – – – Transfer to statutory reserve – (57,172) 57,172 – – Convertible loans – equity component – – 134 134 – 134
At 31 December 2013 1,409,001 574,769 (47,333) 1,936,436 198,212 2,134,648 32 Financial Statements Ecobank Group – Abridged Annual Report 2013 Consolidated statement of cash flows
(All amounts in thousands of US dollars unless otherwise stated)
Year ended 31 December 2013 2012 Cash flows from operating activities Profit before tax 221,778 338,029
Adjustments for: Net trading income – foreign exchange (228,999) (190,450) Net gain from investment securities 1,581 3,570 Fair value losses/(gain) on investment properties 8,472 (33,735) AMCON refund relating to acquisition of Oceanic Bank – (72,364) Impairment losses on loans and advances 362,628 140,936 Impairment losses on other financial assets 14,102 7,441 Depreciation of property and equipment 110,379 107,319 Net interest income (1,050,758) (848,690) Amortization of software and other intangibles 24,519 25,050 Impairment charges: • Property and equipment – 172 Profit on sale of property and equipment – (1,885) Share of (profit)/loss of associates (16) 613
Income taxes paid (88,895) (60,172)
Changes in operating assets and liabilities • Trading assets (22,063) (91,284) • Derivative financial assets 2,071 – • Other treasury bills (391,457) 70,932 • Loans and advances to banks 451,675 656,903 • Loans and advances to customers (2,162,352) (2,081,005) • Pledged assets (435,380) (602,608) • Other assets (109,803) (5,009) • Mandatory reserve deposits (522,048) (490,543) • Other deposits 308,600 199,261 • Due to customers 1,869,426 2,543,983 • Derivative liabilities 1,325 (10,141) • Other provisions 2,471 14,830 • Other liabilities 193,438 (296,425)
Interest received 1,599,756 1,348,086 Interest paid (548,998) (499,396) Net cash flow (used in)/from operating activities (388,547) 173,418
Cash flows from investing activities Acquisition of subsidiaries, net of cash acquired – 119,245 Disposal of subsidiaries, net of cash disposed (5,807) – Purchase of software (17,158) (38,711) Purchase of property and equipment (163,877) (160,136) Proceeds from sale of property and equipment 36,724 25,069 Purchase of investment securities (4,301,604) (1,481,828) Purchase of investment properties (11,519) (90,228) Proceeds from sale and redemption of securities 4,591,754 1,747,571 Net cash flow from investing activities 128,152 120,981
Cash flows from financing activities Repayment of borrowed funds (897,690) (1,182,533) Proceeds from borrowed funds 970,249 1,012,307 Proceeds of subscription of ordinary shares – 344,617 Dividends paid to non-controlling shareholders (23,834) (22,525) Dividends paid to owners of the parent (68,879) (55,612) Net cash flow (used in)/from financing activities (20,154) 96,254
Net (decrease)/increase in cash and cash equivalents (280,189) 390,652
Cash and cash equivalents at start of year 1,813,053 1,330,596 Effects of exchange differences on cash and cash equivalents 108,886 91,804 Cash and cash equivalents at end of year 1,641,749 1,813,053 Financial Statements 33 Ecobank Group – Abridged Annual Report 2013 Five-year summary financials
(All amounts in thousands of US dollars unless otherwise stated)
2013 2012 2011 2010 2009
At the year end Total assets 22,532,453 19,939,383 17,161,912 10,466,871 9,006,523 Loans and advances to customers 11,421,605 9,440,945 7,359,940 5,264,184 4,766,197 Deposits from customers 16,489,904 14,620,478 12,076,495 7,924,585 6,472,459 Total equity 2,134,648 2,173,917 1,459,336 1,292,610 1,235,565
For the year Revenue 2,003,456 1,729,999 1,195,628 899,643 873,318 Profit before tax 221,778 338,029 277,422 169,026 101,066 Profit after tax 147,773 286,732 206,840 131,819 64,600 Profit attributable to owners of the parent 95,541 249,743 182,207 112,716 51,075
Earnings per share – basic (cents) 0.60 1.67 1.76 1.14 0.58 Earnings per share – diluted (cents) 0.55 1.28 1.55 1.13 0.57 Dividend per share (cents) – 0.40 0.40 0.40 0.30
Return on average equity (%) 6.9 15.8 15.9 10.4 5.6 Return on average assets (%) 0.73 1.55 1.50 1.40 0.70 Cost-to-income ratio (%) 70.1 71.4 69.6 69.9 72.4
* Results for 2012 and 2013 are shown for continuing operations 34 Financial Statements Ecobank Group – Abridged Annual Report 2013 Parent Company’s financial statements
(All amounts in thousands of US dollars unless otherwise stated)
Income statement Year ended 31 December 2013 2012
Interest income 17,321 19,679 Finance cost (64,515) (64,067)
Net interest income (47,194) (44,388)
Fees and commission income 41,838 38,706 Fees and commission expense (748) (798)
Net fees and commission income 41,090 37,908
Dividend income 114,817 103,873 Other operating income 3,245 85,923 Personnel expense (26,765) (25,333) Depreciation and amortization expense (6,837) (5,370) Other operating expense (32,122) (29,188) Provision for doubtful receivable (47,017) – Foreign exchange translation gain (6,773) (713)
(Loss)/Profit for the year (7,556) 122,712
Statement of comprehensive income Year ended 31 December 2013 2012
(Loss)/Profit for the year (7,556) 122,712
Other comprehensive income:
Items that will be reclassified to profit or loss Fair valuation gain/(loss) on available-for-sale securities (net of tax) 10,075 (28,497)
Other comprehensive income/(expense) for the year 10,075 (28,497)
Total comprehensive income for the year 2,519 94,215 Financial Statements 35 Ecobank Group – Abridged Annual Report 2013
Statement of financial position Year ended 31 December 2013 2012
Assets Loans and advances to banks 292,698 298,242 Investment in securities: available-for-sale 111,226 101,141 Other assets 129,171 113,099 Investment properties 36,600 37,500 Investment in associates 14,354 789 Investment in subsidiaries 2,281,515 2,228,926 Intangible assets 721 1,369 Property, plant and equipment 59,459 62,982
Total assets 2,925,744 2,844,048
Liabilities Borrowed funds 906,872 757,996 Other liabilities 310,304 313,236 Retirement benefit obligations 5,388 4,313 Provision 1,170 267
Total liabilities 1,223,734 1,075,812
Equity Share capital 430,300 430,300 Share premium 992,000 992,000 Retained earnings 177,878 272,720 Other reserves 101,832 73,216
Total equity 1,702,010 1,768,236
Total liabilities and equity 2,925,744 2,844,048 36 Financial Statements Ecobank Group – Abridged Annual Report 2013 Parent Company’s financial statements
(All amounts in thousands of US dollars unless otherwise stated)
Statement of changes in equity Retained Share capital Share premium earnings Other reserves Total
At 01 January 2012 320,928 759,258 113,800 89,838 1,283,824
Profit for the year 2012 – – 122,712 – 122,712 Net unrealized loss on available-for-sale investments – – (28,497) (28,497)
Total comprehensive income – – 122,712 (28,497) 94,215
Dividends relating to 2011 – – (55,612) – (55,612) Share option granted – – – 1,200 1,200 Share option lapsed – – 181 (181) – Gain on partial disposal of investment in subsidiaries – – 102,495 – 102,495 Transfer to general banking reserve – – (10,856) 10,856 – Proceeds from issue of shares 109,375 240,625 – – 350,000 Share issue expenses – (7,883) – – (7,883) Refund of deposit for shares (3) – – – (3)
At 31 December 2012/01 January 2013 430,300 992,000 272,720 73,216 1,768,236
Profit for the year – – (7,556) – (7,556) Equity component of convertible loan issued during the period – – – 134 134 Net unrealized gain on available-for-sale investments – – – 10,075 10,075
Total comprehensive income – – (7,556) 10,209 2,653
Dividends relating to 2012 – – (68,879) – (68,879) Transfer to general banking reserve – – (18,407) 18,407 –
At 31 December 2013 430,300 992,000 177,878 101,832 1,702,010 Financial Statements 37 Ecobank Group – Abridged Annual Report 2013
Statement of cash flows 2013 2012
Cash flows from operating activities
Profit for the year (7,556) 122,712
Adjustment for non cash items: Interest income (17,257) (19,679) Finance cost 64,515 64,067 Income on AMCON bonds – (72,359) Dividend income (114,817) (103,873) Fair value gain on investment property (600) (13,346) Gain on disposal of property plant and equipment (21 ) (26) Loss on disposal of investment in subsidiary 1,815 – Gain on disposal of investment property (1,300) – Gain on disposal of available for sale investment securities (28) 4,090 Share option granted – 1,200 Depreciation and amortization 6,837 5,370 Amortization of government grant (192) (192) Provision for doubtful receivables 47,017 – Foreign exchange loss on retirement benefit obligation 195 – Current service cost and interest on benefit obligation 880 614 Net cash used in operating activities before changes in working capital (20,512) (11,422)
Interest paid (55,694) (50,616) Interest received 16,515 13,803 Addition to loans and advances (21,786) (23,467)
Changes in working capital • net increase in other assets (62,349) (5,010) • net increase in other liabilities 17,742 (15,749)
Net cash used in operating activities (126,084) (92,461)
Cash flows from investing activities
Dividend received 114,817 103,873 Purchase of property, plant and equipment and intangible assets (2,725) (9,189) Proceeds from the sale of property, plant and equipment 80 37 Proceeds from disposal of investment property 2,800 – Proceeds from repayment of loans to subsidiaries – 3,326 Addition to investment in subsidiaries (108,255) (459,109) Proceeds from sale of investment in subsidiaries 37,538 – Proceeds from sale of AFS investment 157 53,203 Additions to investment in associates (1,559) (58)
Net cash generated from/(used in) investing activities 42,853 (307,917)
Cash flows from financing activities
Proceeds from borrowings 165,264 85,906 Repayment of borrowed funds (44,654) (79,544) Proceeds from share issue – 350,000 Refund of deposit for shares – (3) Share issue expenses – (5,383) Dividends paid (68,879) (55,612)
Net cash generated from financing activities 51,731 295,364
Net decrease in cash and cash equivalents (31,500) (105,014)
Cash and cash equivalents at the beginning of the year 50,351 155,365
Cash and cash equivalents at end of the year 18,851 50,351 38 Corporate Information Ecobank Group – Abridged Annual Report 2013 Share capital overview
Listings Ecobank Transnational Incorporated’s (ETI’s) ordinary shares are listed on three African exchanges:
Listing location Lagos, Accra, Abidjan, Nigeria Ghana Côte d’Ivoire
Share Price 31-Dec-13 N 16.20 GHS 0.19 XOF 51
% change during 2013 +43% +58% +46%
Average Volume (000’s) 11,359.0 83.9 257.5
% change from 2012 +71% -52% +86%
Shares held (m) 12,871.2 2,755.6 1,585.4
Share capital Ordinary shares Preference Shares
Authorized: 50,000,000,000 Issued: 1,066,580,478
Issued: 17,212,152,208 Convertible into 820,445,701 ordinary shares (conversion ratio of 0.76923)
Major shareholders
PIC (GEPF) 18.2% AMCON 10.4% IFC Managed Funds 7.2% IFC Direct* 6.9% SSNIT 5.2% Free Float 52.1%
* total direct and indirect ownership of IFC is 9.4%
Dilutive securities The Group has a number of dilutive securities, as outlined below (please refer to the full Annual Report for more details).
Convertibles IFC, EIB and OFID hold a total of approximately US$175 million of convertibles, which are exchangeable into ordinary shares at market-related prices.
Nedbank Nedbank Group holds a US$285 million loan with subscription rights into 2,478 million shares (equivalent to a proforma 12.6% stake based on the December 2013 shares in issue).
Nedbank Group also has the right to purchase additional shares at a market-based price to reach a proforma ownership of 20% in ETI. Share options There are options outstanding to staff and management in respect of 422 million shares. Corporate Information 39 Ecobank Group – Abridged Annual Report 2013 Holding company and subsidiaries
Headquarters: 11. Equatorial Guinea 21. Niger 32. Zimbabwe Ecobank Transnational Incorporated Avenida de la Independencia Angle Boulevard de la Liberté Block A, Sam Levy’s Office Park 2365, Boulevard du Mono APDO.268, Malabo – et Rue des Bâtisseurs 2 Piers Road B.P. 3261, Lomé – Togo Républica de Guinea Ecuatorial B.P.: 13804, Niamey – Niger P.O. Box BW1464, Borrowdale Tel: (228) 22 21 03 03 Tel: (240) 333 098 271 Tel: (227) 20 73 10 01 – 83 Harare – Zimbabwe (228) 22 21 31 68 (240) 555 300 203 Fax: (227) 20 73 72 03 – 04 Tel: (263 – 4) 851644-9 Fax: (228) 22 21 51 19 Fax: (263 – 4) 852632 12. Gabon 22. Nigeria (263 – 4) 851630-9 1. Benin 214, Avenue Bouët Plot 21, Ahmadu Bello Way Rue du Gouverneur Bayol 9 Étages, Montagne Sainte P.O.: Box 72688, Victoria Island 33. EBI SA Groupe Ecobank 01 B.P. 1280, RP Cotonou – Benin B.P. 12111 Lagos – Nigeria Les Collines de l’Arche Tel: (229) 21 31 30 69 Libreville – Gabon Tel: (234) 1 2710391–5 Immeuble Concorde F (229) 21 31 40 23 Tel: (241) 01 76 20 71 Fax: (234) 1 2710111 76 route de la Demi-Lune Fax: (229) 21 31 33 85 (241) 01 76 20 73 92057 Paris La Défense Cedex France Fax: (241) 01 76 20 75 23. Rwanda Tel: (33) 1 70 92 21 00 2. Burkina Faso Plot 314, Avenue de la Paix Fax: (33) 1 70 92 20 90 49, Rue de l’Hôtel de Ville 13. The Gambia P.O. Box 3268, Kigali – Rwanda 01 B.P. 145 42 Kairaba Avenue Tel: (250) 788 16 10 00 34. EBI SA Representative Office Ouagadougou 01–Burkina Faso P.O. Box 3466 Fax: (250) 252 50132 2nd Floor, 20 Old Broad Street Tel: (226) 50 33 33 33 Serrekunda – The Gambia London EC2N 1DP, United Kingdom (226) 50 49 64 00 Tel: (220) 439 90 31 – 33 24. São Tomé and Príncipe Tel: +44 (0)20 3582 8820 Fax: (226) 50 31 89 81 Fax: (220) 439 90 34 Edifício HB, Travessa do Pelourinho Fax: +44 (0)20 7382 0671 C.P. 316 3. Burundi 14. Ghana São Tomé – São Tomé e Príncipe 35. Ecobank Office in China 6, Rue de la Science 19 Seventh Avenue, Ridge West Tel: (239) 222 21 41 Representative Office B.P. 270, Bujumbura – Burundi P.O. Box AN 16746 (239) 222 50 02 Suite 611, Taikang International Tower Tel: (257) 22 20 8100 Accra North – Ghana Fax: (239) 222 26 72 2 Wudinghou, Financial Street (257) 22 20 8200 Tel: (233) 302 68 11 46/8 Xicheng District, 100033 (257) 22 20 8299 Fax: (233) 302 68 04 28/37 25. Senegal Beijing, China Fax: (257) 22 22 5437 Km 5 Avenue Cheikh Anta DIOP Tel: (8610) 66 29 00 98 15. Guinea (Conakry) B.P. 9095, Centre Douanes Fax: (8610) 66 29 00 98 4. Chad Immeuble Al Iman Dakar – Sénégal Avenue Charles de Gaulle Avenue de la République Tel: (221) 33 859 99 99 36. Ecobank Office in South Africa B.P. 87, N’Djaména – Tchad B.P. 5687 Fax: (221) 33 859 99 98 Representative Office Tel: (235) 2252 43 14/21 Conakry – Guinée 4 Sandown Valley Crescent Fax: (235) 2252 23 45 Tel: (224) 63 70 14 34 26. Sierra Leone 4th Floor, Sandton 2196 (224) 63 70 14 35 7 Lightfoot Boston Street Johannesburg – South Africa 5. Cameroon Fax: (224) 30 45 42 41 P.O. Box 1007 Tel: (27) 11 783 6197 – 6431/6391 Boulevard de la Liberté Freetown – Sierra Leone Fax: (27) 11 783 6852 B.P. 582, Douala – Cameroun 16. Guinea-Bissau Tel: (232) 22 221 704 Tel: (237) 33 43 82 51 Avenue Amilcar Cabral (232) 22 227 801 37. Ecobank Office in Dubai (237) 33 43 84 88/89 B.P. 126, Bissau – Guinée-Bissau Fax: (232) 22 290 450 Representative Office Fax: (237) 33 43 86 09 Tel: (245) 320 73 60/61 Level 26d, Jumeirah Emirates Towers Fax: (245) 320 73 63 27. South Sudan Shaikh Zayed Road, P.O. Box: 29926 6. Cape Verde Koita Complex, Ministries Road, Dubai – UAE Avenida Cidade de Lisboa 17. Kenya P.O. Box 150, Juba Tel: (971) 4 327 6996 CP 374C Ecobank Towers South Sudan Fax: (971) 4 327 6990 Praia – Cabo Verde Muindi Mbingu Street Tel: (211) 954 018018 Tel: (238) 260 36 60 P.O. Box 49584, Code 00100 (211) 955 541683 38. Ecobank Office in Angola Fax: (238) 261 82 50 Nairobi – Kenya Representative Office Tel: (254) 20 288 3000 28. Tanzania Rua Joaquim Kapango Nº31 7. Central African Republic /0719 098 000 Karimjee Jivanjee Building Ingombota-Luanda Place de la République Fax: (254) 20 224 9670 Plot Nº 19, Sokoine Drive C.P 25, Luanda – Angola B.P. 910 Bangui – République P.O. Box 20500 Tel: (244) 938 910 345 Centrafricaine 18. Liberia Dar es Salaam – Tanzania Tel: (236) 21 61 00 42 Ashmun and Randall Street Tel: (255) 22 213 7447 39. Ecobank Office in Ethiopia Fax: (236) 21 61 61 36 P.O. Box 4825 (255) 22 212 5592 Gerdi Rd Yerer Ber Area, 1000 Monrovia 10 – Liberia (255) 22 212 5594 SAMI Building, 6th Floor 602A 8. Congo Tel: (231) 886 74 76 93 Fax: (255) 22 213 7446 Addis Ababa, Ethiopia Immeuble de l’ARC, 3ème étage (231) 886 97 44 94 Tel: (251) 934 169 784 (Cell) Avenue du Camp Fax: (231) 701 22 90 29. Togo (251) 116 291 101 B.P. 2485, Brazzaville – Congo 20, Avenue Sylvanus Olympio Fax: (251) 116 291 425 Tel: (242) 06 621 08 08 19. Malawi B.P. 3302 (242) 05 778 79 08 Ecobank House Lomé – Togo eProcess International SA Corner Victoria Avenue and Tel: (228) 22 21 72 14 2365, Boulevard du Mono 9. Côte d’Ivoire Henderson Street, Private Bag 38 Fax: (228) 22 21 42 37 B.P. 4385, Lomé –Togo Immeuble Alliance Chichiri, Blantyre 3 – Malawi Tel: (228) 22 22 23 70 Avenue Terrasson de Fougères Tel: (265) 01 822 099/808/681 30. Uganda Fax: (228) 22 22 24 34 01 B.P. 4107– Abidjan 01 Fax: (265) 01 820 583 Plot 4, Parliament Avenue Côte d’Ivoire P.O. Box 7368 Tel: (225) 20 31 92 00 20. Mali Kampala – Uganda Fax: (225) 20 21 88 16 Place de la Nation Tel: (256) 417 700 100 Quartier du Fleuve Fax: (256) 312 266 079 10. Democratic Republic B.P. E1272 of the Congo Bamako – Mali 31. Zambia 47, Avenue Ngongo Lutete Tel: (223) 20 70 06 00 22768 Thabo Mbeki Road Gombe – RD Congo Fax: (223) 20 23 33 05 P.O. Box 30705 B.P. 7515, Kinshasa Lusaka – Zambia Tel: (243) 99 60 16 000 Tel: (260) 211 250 056 – 7 Fax: (243) 99 60 17 070 (260) 211 250 202 – 4 (260) 211 367 390 Fax: (260) 211 250 171 40 Corporate Information Ecobank Group – Abridged Annual Report 2013 Shareholder contacts
Questions about your shares? To buy or sell shares in ETI Other investor queries Please contact the Registrars for queries Nigeria For other queries about investing in ETI about: EDC Securities Limited • Missing dividends 19A Adeola Odeku Street Investor Relations • Lost share certificates Victoria Island Ecobank Transnational Incorporated • Estate questions Lagos, Nigeria 2365, Boulevard du Mono • Address change to the share register (234) 1 270 8955 B.P. 3261, Lomé – Togo (234) 1 271 3407 Tel: (228) 22 21 03 03 • Having dividends paid directly into Contact: Josephine Onwubu, Fax: (228) 22 21 51 19 bank accounts [email protected] Contact: James Etherington, Ato Arku, • Eliminating duplicate mailings of [email protected] shareholder materials Côte d’Ivoire • Uncashed dividend cheques. EDC Investment Corporation Company Secretary Immeuble Alliance, Avenue Samuel K. Ayim Terrasson de Fougères 01 Registrars Group Office BP 4107 Abidjan 01 2365, Boulevard du Mono Abidjan Côte d’Ivoire B.P. 3261, Lomé – Togo EDC Investment Corporation Tel: (225) 20 21 104 4 Tel: (228) 22 21 03 03 Immeuble Alliance, 4ème étage (225) 20 31 92 24 (228) 22 21 31 68 Avenue Terrasson de Fougères Contact: Brice Allet, Fax: (228) 22 21 51 19 01 BP 4107 – Abidjan 01 [email protected] Côte d’Ivoire Contact: [email protected] Tel: (225) 20 21 10 44 Fax: (225) 20 21 10 46 Cameroon EDC Investment Corporation Contact: Jean-Noël Delafosse, 2ème Etage, Immeuble ACTIVA [email protected] Rue Prince de Galles Akwa, Douala – Cameroun Accra Tel: (237) 33 43 13 81 Ghana Commercial Bank Limited Contact: Adonis Seka, Share Registry Department [email protected] Thorpe Road, High Street P.O. Box 134, Accra – Ghana Tel: (233) 0 302 668 656 Ghana EDC Stockbrokers Limited Fax: (233) 0 302 668 712 5 Second Ridge Link Contact: Gladys Wuo Asare, North Ridge, Accra – Ghana [email protected] Tel: (233) 302 25 17 20 – 3 Kojo Essel, [email protected] Contact: Mahama Alhassan Iddrisu, [email protected] Lagos EDC Securities Limited 154 Ikorodu Road Onipanu Bus stop, Shomolu Lagos – Nigeria Tel: (234) 704 3721311 Contact: [email protected] Prisca Enwe, [email protected] Mercy Onyejiuwa, [email protected] Corporate information 41 Ecobank Group – Abridged Annual Report 2013 Customer contact centres
Services: For all enquiries, kindly email or call one of our Contact Centers listed below: Celebrating 25 years Balance enquiry • Account balance • Transaction confi rmations All countries: of pan-African banking [email protected] • Transfer confi rmations Card services Ghana Ecobank would like to thank our customers, staff, • Card activation for online transaction Please dial: Toll free (Ghana only): shareholders and partners who have supported • Pin resets (233) 302 21 39 99 3225 us in reaching this milestone of twenty fi ve years • Card blocking (MTN, Airtel, Vodafone) of operations. Complaints • ATM complaints Nigeria • Card complaints Please dial: Toll free (Nigeria only): (234) 700 500 0000 0800 326 2265 The Group has come a long way since opening • Transaction complaints its fi rst branch in Togo in 1988. Africa has also • Service/product delivery delays • Staff attitude developed rapidly during this time. We are Kenya General enquiries Please dial: Toll free (Kenya only): confi dent about the opportunity and potential • Information on Ecobank services/products (254) 20 288 3000 0800 221 221 8 for the next 25 years, both for the Group and • Interest/exchange rates (254) 71 909 8000 (free from landlines) the continent. • Directions to ATMs/branches • Account opening requirements Côte d’Ivoire • Branch contacts Please dial: Toll free (Côte d’Ivoire only): The future is pan-African, and Ecobank • Fees and charges (225) 22 40 02 00 800 800 88 (MTN, Orange, CITelecom, is the pan-African bank. Moov and Comium)
Cameroon Please dial: (237) 33 43 13 63 Ecobank Transnational Incorporated 2365, Boulevard du Mono B.P. 3261, Lomé – Togo
Ecobank Group Abridged Annual Report 2013
Celebrating 25 years of pan-African banking