Ecobank Earns GCR Top Ratings
 1st DEC 2006

The improved performance of Ecobank Nigeria Plc in the 2006 financial year has earned it an "A+" long term and "A1" short term ratings from Global Credit Rating Company (GCR), an internationally acclaimed rating agency.

The ratings confirm Ecobank Nigeria short and long-term favourable outlook. According to the report prepared by GCR, the "AA-" Long Term rating attests to the Bank’s very high credit quality. This suggests that the bank’s protection factors are good. The "A1" Short Term rating indicates very high certainty of timely payment, excellent liquidity supported by good fundamental protection factors.

GCR is an emerging markets rating agency currently operating in over 30 countries spanning four continents including Africa, South America, Eastern Europe and Asia. The agency currently occupies the market leadership position in all sectors in Africa, rating more companies in the continent than all other agencies combined.

The current rating is based on key factors including the Bank’s risk management framework, growing branch network including the purchase of selected branches of the defunct All States Trust Bank Plc.

The rating agency in its report particularly notes that "Ecobank has sustained strong asset quality during the period ended-June 2006 although the capital value in arrears increased by 51% to N1.7bn, the bank’s gross non-performing loan (NPL) ratio improved to 4% from 5.4% in FO5.

However, cognizance must be taken of the general lag in arrears following rapid advances growth, which tends to initially improve asset quality indicators. The current interest rate cycle also favours a reduced arrears experience, which would peak in an up-cycle"

Given the Ecobank’s stellar performance especially in the area of product innovation, cost management, robust retail and branch expansion strategy, industry watchers are confident that shareholders are assured of a spectacular full year performance that will see them reap attractive dividends.

Ecobank Nigeria Plc is a dominant franchise of Africa’s leading regional banking group, Ecobank Group. Ecobank was established in 1985, as a regional bank by the West African business community with the support of ECOWAS to promote Regional financial co-operation in the area of trade and investment. Ecobank Group is today considered by many investors as a gateway to the West and Central African financial markets offering world class products and services.

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