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GCR rates Ecobank Nigeria A-(NG)

By on October 13, 2013

The Global Credit Ratings (GCR), a rating agency, has upgraded the long-term national scale and affirmed the short term national scale issuer ratings assigned to Ecobank Nigeria to A-(NG) and A2 (NG) respectively.

This implies that Ecobank Nigeria is healthy, sound and has stable outlook.

A statement said the rating was influenced by Ecobank’s competitive position in the Nigerian banking industry, which GCR noted had been enhanced by its acquisition of the defunct Oceanic Bank, the bank’s asset size and branch network in the country. It also noted that the bank’s risk management processes had undergone significant changes over the past year.

The rating agency further stated that the internal loan recovery system of the bank had become more effective following the sale of impaired loans totaling N17 billion to the Asset Management Corporation of Nigeria (AMCON). In addition, it added that the bank’s enlarged branch network has enhanced its access to cheaper retail deposits, noting that its capital adequacy has also improved, following the injection of $400 million in Tier I capital by Ecobank Transnational Incorporated (ETI) in the 2012 financial year-end.

“Also, Ecobank achieved a net comprehensive income of N18.4 billion in the 2012 financial year; representing a notable 33.7 per cent growth over the IFRS based results for 2011. Benefitting from the higher interest rates that prevailed for most part of the year, robust returns on investment securities saw total operating income grow by 142 per cent. This positive growth is recorded in most key indices,” the agency stated.

Commenting on the rating, the Managing Director, Ecobank Nigeria, Mr. Jibril Aku, attributed the high ratings to the commitment and hard work of the management and staff members of the bank, assuring them that the rating would act as stimulus towards greater achievements.

“The bank has always been at the forefront of promoting excellence in its operations. We will continue to ensure that we do not only maintain the standards that we have set, but we will exceed the current achievements and give value to all our shareholders, customers and investors,” he said.

 

 

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