Ecobank Transnational ticks a lot of boxes. The Togo-headquartered bank is undeniably a true regional lender, with a presence in 33 sub-Saharan African markets, from the big (Nigeria, South Africa) to the tiny (São Tomé & Principe, Guinea-Bissau).
The bank called 2021 a transformational year, a designation it is hard to refute. Pre-tax profit rose 41.4% year on year to $478 million. It generated a record return on equity of 19% and on assets of 1.3%, with total assets up 6.3% to $2.16 billion.
And it started the new year in great shape. In the first quarter of 2022, the lender posted a net profit of $221.6 million, up 25% from the same period a year earlier.
The pandemic tested every African lender to the limit, and Ecobank was not found wanting. It emerges from this period of crisis – in which it donated millions of dollars to buy medical equipment, waived fees on interbank transfers and raised daily limits on mobile banking – in robust shape with a record-low efficiency ratio of 58.9%.
Along with its financial acumen, it is the bank’s ability to plan for the long haul that continues to impress. In June 2021 it moved to ensure its coffers were well stocked by successfully raising $350 million in tier-2 sustainability notes, in a deal that was 3.6 times oversubscribed.
That marked the first Basel III-compliant structure of its kind in the region outside South Africa and shone a light on the bank’s advances in the field of sustainable finance. Ecobank also secured a €100 million long-term credit facility from the European Investment Bank to support businesses in those industries most negatively impacted by the pandemic.
Clients have taken note.
“Being responsive in real time to listen and deliver as required by, and to inspire, our clients and customers has been an essential part of earning their trust,” says Ecobank group chief executive Ade Ayeyemi.
The bank is a force in corporate responsibility, where the Ecobank Foundation works hard to transform the lives of countless people across Africa. Notable initiatives include its Zero Malaria programme and Unitlife, a United Nations-led initiative to combat chronic malnutrition. Its ninth annual Ecobank Day, held in October 2021, focused on the fight to raise awareness about issues relating to mental health.
And it is a leader where it needs to be. Ecobank also takes the awards for Africa’s best digital bank and best bank for SMEs this year.
As was the case with all the best digitally oriented banks, Covid acted as a propellant. The number of new clients soared in 2021, their attention stirred by an institution that offers the same high quality of online banking in each of its markets. The value of transactions processed via Ecobank Mobile and Ecobank Online jumped 51% and 73%, respectively, on an annualized basis in 2021.
Being responsive in real time to listen and deliver as required by, and to inspire, our clients and customers has been an essential part of earning their trust
Ade Ayeyemi
“We have embraced technology to drive operational efficiency and enhance our offerings, service and customer experience,” adds Ayeyemi. “We have prioritized our clients and customers, placing their needs and experience at the heart of our decision-making and operations.”
It is a powerhouse too in banking small and medium-sized enterprises. In summer 2021, it joined forces with the African Union Development Agency to unveil a programme that helps micro-SMEs in eight markets thrive in the post-pandemic world. Over the course of 2021, 107,000 smaller businesses opened an account with Ecobank, taking the total to more than 1.1 million.
The bank’s staunch work on diversity also deserves recognition. At the end of 2021, 30% of executive positions and 31% of management roles were held by women. Last year it launched Ellevate, a platform that offers support to African businesses that are managed and owned by women. By the end of the year, it had onboarded 13,000 new customers and extended loans worth $87 million: further proof that Ecobank deserves to be named Africa’s best bank in 2022.
