ETI to Rationalize Branches to Drive Productivity

Proshare

 Monday, June 20, 2016 6:25PM / NSE  

Leading pan-African bank; unmatched Middle Africa presence

 

Optimising footprint to generate sustainable shareholder returns

 

Operating environment subject to headwinds  

Trends in the Economic Outlook 

  • U.S. rate hike - Impact on CoF
  • China’s slow growth - Impact on commodity prices
  • Higher rates and inflation in some Middle Africa countries – But moderate in Francophone area because of Euro/CFA peg
  • Deval risk in Nigeria; Good progress on NNPC, TSA reforms, security & anti-corruption
  • Steady growth in Kenya; but dependent on capital flow
  • Moderate inflation in Ghana; IMF program support 



Strategy

 

Simplified operating model to facilitate growth

 

Positioning Ecobank for the next phase of growth 

Market Strategy

Top 3 in market - Defend Competitive Position

  • Top 3 in 14 markets
  • Mature with lower capex requirements
  • Product differentiation will underpin growth  

Top 4-10 in market - Opportunities for Growth

 

  • Relevant & strong players but not top 3
  • Invest to capture market share
  • Nigeria, DRC & Cameroon are key
  • Growth prospects likely to require capital  

Below 10th in market - Revisit our investment strategy 

  • Revisit operational strategy in high potential markets
  • Consider constructive exit for low potential markets

Building a stronger and more profitable financial services institution  

Our Guiding Principles 

1.       Commitment to shareholder value creation ( ROE > COE1 )  

2.      Take action on businesses generating returns below cost of capital  

3.      Invest only where have/can have sustainable competitive advantage  

4.      Improve customer service  

5.      Achieve distribution leadership: manufacture centrally and distribute locally  

6.      Strengthen control functions  

7.      Drive operational efficiency  

8.     Disciplined expense management

Keen focus on driving efficiency in our businesses

 

Key Initiatives

  • Consolidation of our data centres in two locations
  • Space/Premises consolidation especially in big markets
  • Optimisation of front/back office processing
  • Branch rationalisation and productivity drive  

Click Here to Download Full Presentation  

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