ETI to Rationalize Branches to Drive Productivity

 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  

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