Premium Times Nigeria
Highlights Financial contribution of Ecobank Nigeria Limited to the Group has been weak and needs to significantly improve relative to the performance of peer local deposit money banks (DMBs)
Digital process upgrade and new competitive edge are synonymous and as such the bank needs to build on its advantages as it transits from analogue bureaucracy to tech-enabled performance-driven competitiveness, with a customer-centric focus
Ecobank Nigeria Limited needs to right fit people to jobs and follow through on performance assessments
The urgency of now means a focused execution of change-plans as currently being undertaken by the bank, the ongoing institutional re-engineering is the right approach to its operational goals.
Fitch Rating and The Revenue Race
Global Credit Rating Agency, Fitch , in a recent report on Ecobank Transnational Incorporated ( ETI ) rated the banking Group a B, which suggests that the bank has not progressed from its earlier rating. The B rating, however, still builds into a corporate narrative of stability even if growth remains muted. A major drawback to the group’s advancement has been the relatively poor performance of its Nigerian operations with its Nigerian bank trapped in a slow revenue growth pattern with flattened operating margins. The Group’s Gross revenue rose marginally by +5.4% from N384.59bn in Q2 2018 to N405.20bn in Q2 2019. The deposit money institution’s (DMB’s) profit margin before tax grew from 16.93% in Q2 2018 to 18.12% in Q2 2019. The slow growth in revenue but stronger improvement in margin reflects a tug at a corporate turnaround.
Ecobank Nigeria: The Need For Change
Ecobank Nigeria has turned into the sick baby of the ETI Group for about two years with the local bank having to dig into a variety of measures to reverse a declining financial outlook. As part of strategies to improve Group performance, the management of the Nigerian subsidiary in 2018 began an academy to retool and upgrade skills of employees. The effort is expected to yield results for the bank in terms of improved service quality, customer user experience and competitive digital presence by the beginning of 2020 when most of the 300 recent trainees settle down to becoming captains and advocates of the new bank culture, hence instilling a new work ethic. Between 2014 and 2018 the ETI Group saw gross revenue drop by N454.71m or -20% which reflects the […]