The future is pan-African Ecobank Nigeria Limited Annual Report 2012

Transcription

The future is
pan-African
Ecobank Nigeria Limited
Annual Report
2012
1
Ecobank Nigeria Limited Annual Report 2012
Branches/outlets
LAGOS
Apapa warehouse road II
Seme Border
APAPA / FESTAC / BADAGRY
2 Warehouse road Apapa
Tel.: (234) 07041450142 08020523483,
08038170067
3, Bank avenue, Seme Border.
Tel.: (234) 07041450248/08023642199
Agbara
Apapa Wharf road
3 Ilaro road Agbara
Industrial estate, Agbara Ogun state Tel.: (234) 08028414580, ‘08132588956,
01-4545838
Alaba Agudosi
4 Agudosi str, Alaba intl mkt, Ojo
Tel.: (234) 08023194080/08129009652
Alaba Agudosi II
1 Agudosi street Alaba international market ojo
Tel.: (234) 08025611711; 07041450719
Alaba Electrical
Church street, st. Patrick Junction, Alaba int’l market,
ojo Lagos.
Tel.: (234) 08022234104 , 08129009653
Alaba Ojo Igbede
h line Alaba int’l Ojo- igbede Lagos
Tel.: (234) 08037151716, 07041450147
Alaba St Patrick
St Patrick’s Junction, Alaba int’l market, Ojo Lagos
Tel.: (234) 07041450123 & 08022236919
Alaba st Patricks Junction
3a Ojo Igbede road Alaba intl mkt Ojo Lagos
Tel.: (234) 07041450247/08033275054
Amuwo Odofin
Plt 132, blk 10, Festac Link rd, Amuwo Odofin
Tel.: (234) 08028732800/07041451397
Apapa creek road
26 creek rd.,Apapa
Tel.: (234) 08033336627 & 08129009649
Apapa Commercial road
1 commercial road,Eleganza Plaza Cancer block
Apapa Lagos.
Tel.: (234) 08033546484/’07041451233
Apapa Kirikiri road
198 kirikiri road, Olodi Apapa Lagos
Tel.: (234) 08023526682 ;0704141333
Apapa Mobil road
21 Mobil road mobil
Tel.: (234) 08025011005
Apapa park Lane
46,parklane,Apapa GRA, Lagos
Tel.: (234) 08023151154, 07041451270
Apapa Point road
1b Point road, Apapa, Lagos
Tel.: (234) 08023198929
Apapa Randle road
7, randle road apapa
Tel.: (234) 08184130814; 08129009638
Apapa Warehouse road
9a Warehouse road Apapa Lagos
Tel.: (234) 08023124249
13/15, Wharf road, Apapa Lagos
Tel.: (234) 07041450106;08022241688
Aspamda
zone e block 9, t/fair Complex(Aspamda) Ojo
Tel.: (234) 08033454887/07041451428
Badagry
Along market road,Badagry.
Tel.: (234) 08033048200
Bba int.Trade fair
Atiku Abubakar hall, International Trade Fair, Lagos
Tel.: (234) 07041450115,08020523418
Festac
house 22, 2nd avenue, festac town, Lagos
Tel.: (234) 08020523568/07041450268
Festac 21 road
Fg Close 21 road Festac Town Lagos
Tel.: (234) 08023039109; 07041451398
Intnl Trade Fair
Olusegun Obasanjo Hall,tradefair Complex,Badagry
Expressway
Tel.: (234) 07041450061, 08020523542
Int.Trade fair (balogun)
Tradefair Complex, Atiku Abubakar Hall
Tel.: (234) 08023192729/07041451429
Orile Coker
block12 Agric market, Odunade, Orile Coker,Lagos
Tel.: (234) 08023171639/07041451384
Ojo Cantonement
Nigerian Army Millitary Cantonment Ojo Lagos
Tel.: (234) 08033041881/07041451426
Olodi Apapa
17 Apapa-Oshodi Expressway.
Olodi-Apapa, Lagos
Tel.: (234) 07086720256, 07041450237
Olojo Drive
Christ in me Plaza Olojo Drive Ojo Lagos
Tel.: (234) 08033436393, 07041451249
Orile
11/13 Balogun St Marshall Plaza Behind Agric
market Alaba Oro Amukoko Coker
Tel.: (234) 08033218816/07041450219
Maza maza
13, Old Ojo road, Maza-Maza, Lagos
Tel.: (234) 07041450119/08020523562
Satelite
km 22 Badagry Express Way,Maza Maza
Tel.: (234) 07087963001/’07041451421
Seme Border II
Bank avenue, Seme border, seme - Lagos
Tel.: (234) 08098528790
CASH CENTRES
Berger Cash Centre
Mc 1 park, Berger Under Bridge, Ajegunle
Tel.: (234) 07086720256, 07041450237
Festac Cash Centre
Suite 1, 5th avenue, Between e and g close, Festac
town
Tel.: (234) 08020523568/07041450268
Orile Agric market C/Centre
Agric market, Lagos-Badagry Expressway
Tel.: (234) 08033218816/07041450219
Tincan cash office
Customs House; Tincan Port Apapa Lagos
Tel.: (234) 07041450106;08022241688
NACA/NETPOST
Ajegunle Netpost
Ajegunle Netpost - Ajegunle Post Office, Ago Hausa,
Opposite Ajeromi lg
Tel.: (234) 07086720256, 07041450237
Navy Town Netpost
Navy Town Post Office,Navy Town
Tel.: (234) 07041450061, 08020523542
IKEJA / OGBA . ISOLO
Abeokuta Expressway
162,Abeokuta Exp.Way
Tel.: (234) 08033262553
Abesan
Federal Govt Layout Ipaja Abesan
Tel.: (234) 08074866509,07041451374
Adeniyi Jones
84 Adeniyi Jones Ikeja Lagos
Tel.: (234) 07041450154/08023051395
Airport road
14 International Airport road, Mafoluku, Oshodi,
Lagos.
Tel.: (234) 08033792572
Ajao Estate
43, Muritala Mohammed Int’l Airport rd, Ajao Estate
Tel.: (234) 08023123422
Alausa
Good Shepherd House, Ipm avenue. Opposite
Alausa Secretariat, Ikeja
Tel.: (234) 08033465065
Alausa Lspc Mall
131 Obafemi Awolowo Way , Alausa Ikeja, Lagos
Tel.: (234) 08095829564, 07041451470
Allen avenue
22, Allen avenue Ikeja
Tel.: (234) 08034465530
2
Branches/outlets
Allen avenue II
Ire Akari
Oregun
94 Allen avenue, By Alade market,Ikeja ,
Lagos
Tel.: (234) 07041450130,08023125739
1A, Ire-Akari Estate rd, Isolo-Lagos
Tel.: (234) 08022866305/07041450236
Plot 70, Kudirat Abiola Way, Oregun
Tel.: (234) 08023048484
College road Ogba
Isaac John Ikeja
Oregun Adebayo Akande
29B Isaac John street Ikeja Gra, Lagos
Tel.: (234) 08023171508
2 Adebayo Akande street, Oregun, Lagos
Tel.: (234) 08023123399
Isheri
Toyin street Ikeja
Daleko
420 Oba Ogunnusi road Ojodu Berger Lagos Tel.: (234) 8087180390
812/813 Bank road Daleko market Mushin Lagos
Tel.: (234) 08054553716/07041450191
Isolo
15 Toyin street, Ikeja Lagos
Tel.: (234) 07044088872/07041451360
Unity road Ikeja
3A Toyin street, Ikeja
08023093070,
Tel.: (234) 08059377474/07041451339
67,College road-Adekoya Estate Corner-Piece, IdiAgbon B/Stop-Ogba
Tel.: (234) 08033002788
Daleko II
Bank road, Daleko market
Tel.: (234) 08023205544
Egbeda
26/28,
Energy Filling Station, Ile-Epo Alhaji B/Stop - Lagos
- Nigeria
Tel.: (234) 08023123834/07041451373
Tel.: (234) 08022239310
Iyana-Ipaja
Opp, Iyana Ipaja Garage, Iyana Ipaja Rounabount
Lagos
Tel.: (234) 08023123715/07041451375
Motor Way Ikeja
Mororways Centre, Ikeja
Tel.: (234) 08023028148
CASH CENTRES
Ojota
114, Ogudu , Ojota - Lagos - Nigeria
Tel.: (234) 07041450678/08023467449
Oko Oba Cash Center
2 Old Abeokuta road Abbatoir Agege Lagos
Tel.: (234) 7041450039
LAGOS MAINLAND
Ejigbo
Mm Intl. Airport Ikeja
Inside Energy Filling Station Ile Epo Ejigbo
Tel.: (234) 08033245439/07041451351
Nahco Complex M/M Intl Airport Ikeja Lagos
Tel.: (234) 08023123214, 07041451382
Fadu Ejigbo
New Domestic Terminal Ikeja
Dillion street Kirikiri
No 1 Fadu avenue, Orilowo.Ejigbo
Tel.: (234) 08033434353/07041451352
Obi Quarters, Opposite Arik Gate, Mma2, Ikeja,
Lagos
Tel.: (234) 08034540425,07041451383
No 2 Dillion street,Kirikiri Industrial Estate,Apapa.
Tel.: (234) 08033135966/07041451331
Enitan Aguda
Obafemi Awolowo Way Ikeja
3A&B Enitan street Aguda Surulere
Tel.: (234) 08034037447 & ‘07041451385
Ijaiye
572 Lagos Abeokuta Exp Way Ijaiye
Tel.: (234) 08023130572;’07041450076
Iju road Agege
155,Iju road,Iju
Tel.: (234) 08033089072
Ikeja
48/50 Adeniyi Jones avenue,Ikeja Lagos
Tel.: (234) 08023139189
31 Obafemi Awolowo Way ,Ikeja
Tel.: (234) 08023071578 & 07041451358
Ogba
21 Ijaiye road Ogba Aguda Lagos
Tel.: (234) 07041450039/08023125317
Ogba Shopping Complex
Ikeja Gra
No 15 Ijaiye road, Opposite Blue
Cross Hospital, Caterpillar Bus Stop, Ogba Lagos
Tel.: (234) 08037276780, 07041451256
8, Joel Ogunnaike street, Gra Ikeja
Tel.: (234) 08023127046; 07041450205
Ogudu
Ikeja - Oba Akran 1
114, Ogudu , Ojota - Lagos - Nigeria
Tel.: (234) 07041450678/08023467449
19A Oba Akran avenue, Ikeja , Lagos
Tel.: (234) 08020523549,07041450125
Ogudu II
Ikosi
135 Ogudu road Ojota Lagos
Tel.: (234) 08024047445-08129009714
2 Assoc Close, Ikosi Ketu
Tel.: (234) 08023123714-07041451418
Ojodu
Ikorodu road Ketu
240 Ogunnusi road Ojodu Berger Lagos
Tel.: (234) 087033284610 & 07041451258
487 Ikorodu rd Ketu
Tel.: (234) 07043720322
Oke Afa
Ikotun
52, Idimu/Isheri rd Ikt
Tel.: (234) 08033082216 & 07041451350
Ilasamaja
Plot 1Block K,Isolo Industrial Estate,Sadiku BusStop,Ilasamaja - Lagos - Nigeria
Tel.: (234) 08033064073
6 Egbe road Opp L.C.H.E Estate, Oke -Afa, Isolo,
Lagos.
Tel.: (234) 07041450288/08023027063
Okota
132/134 Okota road, Okota,Lagos
Tel.: (234) 08023014283 , 07041451452
Omole
Intl Airport
Plot 17 Ogunnusi road, Omole , Ikeja , Lagos
Tel.: (234) 08023721330
D Arrival,Muritala Muhammed International Airport
Lagos
Tel.: (234) 07086458027,07041450145
Opebi
50 ,Opebi street Ikeja
Tel.: (234) 08023253902/07041451245
Gbagada
170 Gbagada Oshodi Exp Way Gbagada Phase 1
Tel.: (234) 08027341636 /07041451312
Herbert Macaulay II
383, Herbert Macaulay Way, Yaba, Lagos
Tel.: (234) 08023848400/07041451391
Herbert Macaulay
302 Herbert Macaulay Way , Sabo , Yaba
Tel.: (234) 08033979569/07041450201
Ibachem
7 Tincan Way Apapa Oshodi Expressway Coconut
Bus-Stop Olodi Apapa
Tel.: (234) 08099780120/08060109057
Iddo
8 Taylor road,G-Cappa Iddo
Tel.: (234) 08023124161;07041451390
Ikorodu
52, Lagos road, Ikorodu Town. Lagos
Tel.: (234) 08023123203/07041451416
Ikorodu road
322A Ikorodu road, Elizade Plaza, Anthony Lagos.
Tel.: (234) 07088342358/07041450233
Ilupeju
No 1 Bank Lane Ilupeju
Tel.: (234) 07086450864 07041450701
Ilupeju II
29/31 Ilpeju Bye-Pass Ilupeju Lagos
Tel.: (234) 08025829646/07041451435
3
Branches/outlets
Ladipo
LAGOS ISLAND / VICTORIA ISLAND / LEKKI
Glover road
Aguiyi Ironsi Plaza,Ladipo Mushin Lagos
Tel.: (234) 07041450253/08085867920
Adeola Odeku
25 Glover road, Ikoyi
Tel.: (234) 08022234517/07041451389
Ladipo II
54 Adeola Odeku street, Victoria Island, Lagos
Tel.: (234) 8023592050
Idejo
94/96 Ladipo street, Mushin
Tel.: (234) 08033162107/07041451354
Matori Ladipo street
97 Ladipo street, Matori, Lagos.
Tel.: (234) 08087180283 / 07041450210
Mushin
324 Agege Motor road,Mushin
Tel.: (234) 08025018232/07041451367
Mushin Idi Oro
118, Agege Motor road Lagos
Tel.: (234) 08023408475 , 07041450808
Ojuelegba
30/32 Ojuelegba road, Yaba Lagos
Tel.: (234) 07041450230, 08033042624
Ojuelegba II
8, Funsho Williams avenue, Ojuelegba, Lagos Nigeria
Tel.: (234) 08033055612 & 07041451394
Ojuwoye
No 3 Mumuni Str. Ojuwoye, Mushin.
Tel.: (234) 08023347609 & 07041451366
Onipanu
131 Ikorodu road, Onipanu, Lagos
Tel.: (234) 8023186141
Oyingbo
Adeola Odeku II
1 Amodu Ojikutu Str Off Saka Tinubu V/Island
Tel.: (234) 08065439237 & 07041451497
5 Adeola Odeku street,V/I
Tel.: (234) 07086458699/’07041451478
Idowu Taylor
Ahmadu Bello Way
16 Idowu Taylor street Vi Lagos
Tel.: (234) 08022242164
21,Ahmadu Bello Way Branch V/I Lagos
Tel.: (234) 08020523745
Idowu Martins Branch
Ajah Ado Badore
6 Idowu Martins Str, V.I
Tel.: (234) 08025019998/07041451484
26 Ado road, Ajah
Tel.: (234) 08033891343/07041451402
Idumagbo
Ajose Adeogun
55, Idumagbo avenue, Lagos Island, Lagos
Tel.: (234) 08023070403, 07041451361
2 Ajose Adeogun street, V/I, Lagos
Tel.: (234) 07041450166
Idumagbo II
Ajose Adeogun II
74 Iga-Idunganran Str, Off Idumagbo avenue
Tel.: (234) 07041450053;08023200088
282 Ajose Adeogun street , Victoria Island Lagos
Tel.: (234) 08023393116
Idumota
Akin Adesola
25 Akin Adesola street, Victoria Island, Lagos
Tel.: (234) 08032012727
Akin Adesola II
Plot 642 Akin Adesola St, VI
Tel.: (234) 08025148154,07041451386
Awolowo rd 2
142 Awolowo road Ikoyi
Tel.: (234) 08129006363/08023163494
133, Nnamdi Azikiwe street, Idumota, Lagos
Tel.: (234) 08038580867 & 07041451364
Idumota - Enu-Owa
37/43 Enu-Owa street, Idumota, Lagos
Tel.: (234) 08023000663, 07041450204
Idumota - Nnamdi Azikwe
100, Nnamdi Azikwe street, Idumota, Lagos
Tel.: (234) 8033015089/07041450220
Idumota - Ashogbon
22 Herbert Macaulay Str, Ebute-Metta, Lagos
Tel.: (234) 08028515213/07041450223
Bishop Aboyade Cole
10 Ashogbon street Idumota Lagos
Tel.: (234) 08033059035,07041450281
Palm avenue
Plot 3 Bishop Aboyade Cole street, Victoria
Island,Lagos
Tel.: (234) 08033038084
Ikota
38, Palm avenue Mushin, Lagos
Tel.: (234) 08025018251/07041451356
Palm Groove
154,Ikorodu road,Onipanu Lagos
Tel.: (234) 08037169151&07028118437
Somolu
7, Apata street Somolu
Tel.: (234) 8035777778
Surulere
15, Itire road, Surulere, Lagos
Tel.: (234) 08033180709, 07041451393
Broad street
130 Broad street
Tel.: (234) 07043720008 ‘08022635292
Ikota Shopping Complex, Lekki-Ajah, Lagos.
Tel.: (234) 08022440022
Ikota Shopping Complex
Broad street 2
J17-J26 Ikota Shopping Complex
Tel.: (234) 08035713604
137-139 Broad street Apongbon Lagos Island
Tel.: (234) 07041450227, 08023136340
Ikoyi Awolowo road
Broad street 3
67 Awolowo road Branch,Ikoyi
Tel.: (234) 07041450167
74/76, Broad street Lagos Island Lagos
Tel.: (234) 07041451404
Ikoyi Awolowo road II
Chevron
226 Awolowo road, Ikoyi
Tel.: (234) 08034465040 / 07041451387
60 Adeniran Ogunsanya Str. Surulere
Tel.: (234) 08087180238/07041450898
Km 18 Lekki Express Way By Chevron Drive,LekkiLagos
Tel.: (234) 8023002049 & 07043720477
Issa Williams
Trinity
Docemo
22 Oshodi Apapa Expressway,Westminister
Busstop,Apapa Lagos
Tel.: (234) 8123196450
45 Docemo street Lagos Island
Tel.: (234) 08023466622/07041451362
CASH CENTRES
Eleganza Gardenskm 22 Lekki Epe Expressway Ajah
Tel.: (234) 08035459220
Surulere II
Psychytric Implant
30/32 Ojuelegba road, Yaba Lagos
Tel.: (234) 07041450230, 08033042624
Eleganza
Epe
33/35 Lagos road Epe
Tel.: (234) 08087183575/08129119742
8 Issa Williams St. Lagos Island
Tel.: (234) 08071786270 & 07041451403
Kofo Abayomi
18 Kofo Abayomi street, V/I
Tel.: (234) 08028446483/07041451345
Lekki
Lekki Epe Expressway Lekki.
Tel.: (234) 08087180275/07041450120
Ligali Ayorinde
2B Ligali Ayorinde street, Victoria Island, Lagos
Tel.: (234) 8022906499
4
Branches/outlets
Marina
OGUN
Ikare
Oando Plaza Marina, Lagos
Tel.: (234) 08023136260/07041451501
Abeokuta
No 1 Nta Junction,Olwolabi street,Ikare
Tel.: (234) 08036785584
Muri Okunola
75, Awolowo avenue, Omida, Ibara
Tel.: (234) 07014150910/07069423542
Okitipupa
Plot 235 Muri Okunola street Vi
Tel.: (234) 08069189217
Oke-Arin
7 Sanusi Olusi, Okearin, Lagos
Tel.: (234) 08023241737,07041450269
Oke-Arin II
19 Oke Arin St, Lagos Island
Tel.: (234) 08033063807, 07041451363
Oyin Jolayemi
Plot 1675, Oyin Jolayemi street, V.I. Lagos
Tel.: (234) 08033239033
Ozumba Mbadiwe
270, Ozumba Mbadiwe V/I
Tel.: (234) 08036889909
Tbs
39B-40 Tafawa Balewa Sq. Onikan Lagso
Tel.: (234) 08023156937 & 07041450717
Tiamiyu Savage
3A Tiamiyu Savage street, Victoria Island, Lagos
Tel.: (234) 08033071052 & 07041451327
Ultra Modern Plaza Balogun
Ultra Moder Shoping Plaza, Balogun Lagos Island
Tel.: (234) 08023249458 / 07041451365
V.G.C.
Km 22, Lekki-Epe Exp. Way, Lekki - Lagos - Nigeria
Tel.: (234) 08033086044
Canaan Land
128 Braod street Okitipupa
Tel.: (234) 08029331213
Km 10 Idiroko road,Winners Chapel Otta
Tel.: (234) 08066508736/017742354
Ondo Town
Crawford University
13 , Omimode street Yaba Ondo Town
Tel.: (234) 08034738305/08091567517
Km 8, Atan-Agbara rd, Faith City, Igbesa Ogun St.
Tel.: (234) 8033468761
Ore, Ondo
Idiroko road
82, Molasuru Juction, Ore
Tel.: (234) 08034739350;08129009813
237 Idiroko road Ota
Tel.: (234) 08023379273
Owo, Ondo
Ijebu Ode
Opp Old Mobil Filling Station Ijebu Owo
Tel.: (234) 08033614682
71, Ibadan road,Ijebu-Ode
Tel.: (234) 08033456256
CASH CENTRES
Mfm Prayer Ibafo
Fmc Owo
Km 12 Lagos-Ibadan Expressway Ibafo Ogun State
Tel.: (234) 08033471732
Olabisi Onabanjo Univ
Olabisi Onabanjo University Permanent Site
Fed Med Centre Owo
Tel.: (234) 08033614682
OSUN
Otta
Ile-Ife
101 Lagos Abeokuta Expressway Sango Otta Ogun
State
Tel.: (234) 08027962828/017611038
Opposite Phcn Office ,Lagere,Ile-Ife
Tel.: (234) 08077077048
Ilesa, Osun
Owode Egbado
77,Itabalogun Str. Ilesa
Tel.: (234) 08033279835/08129009697
86, Idiroko road,Owode Egbado, Ogun
Tel.: (234) 8068675245
Redemption Camp Ogun
CASH CENTRES
Km 46/48 Lagos-Ibadan Expressway Ogun Stat
Tel.: (234) 08061628350/08025011401
Bonny Camp
Shagamu
Osogbo
Km 4, Gbongan-Ibadan road, Onward Area
Tel.: (234) 7041450066/08033712219
Osogbo II
Bonny Camp Ahmadu Bello Way V/
Tel.: (234) I08020523745
168, Akarigbo street Sabo Shagamu
Tel.: (234) 8025011018
51 Gbongan Ibadan Expressway Opp Fakunle School
Oshogbo
Tel.: (234) 08035065236/08129009807
NACA/NETPOST
CASH CENTRES / NETPOST
NACA/NETPOST
Moloney Netpost
Abeokuta Netpost
Oau Naca
No 2 Moloney street1, Lagos
Tel.: (234) 08020523483, 07041450142
SOUTH WEST
Sapon Post Office
Tel.: (234) 08023259549
Beside Sub Oau
Tel.: (234) 07041450066
Idiroko Cash Centre
OYO
Idiroko Seme Boarder
Tel.: (234) 8068675245
Agodi
EKITI
Ota Netpost
Beside Inaolaji Shopping Complex Agodi
Tel.: (234) 07041405257/08062473175
Ado Ekiti
Otta Post Office
Tel.: (234) 07043720715
Ajayi Crowther Univ (Oyo)
33, New Secretariat road
Tel.: (234) 08034238470/08058676250
Ado Ekiti II
15, Ajilosun Str, Ado Ekiti
Tel.: (234) 08066861174
University Of Ado-Ekiti (Unad)
Km 15 Iworoko road, Ekiti State Univ Ado Ekit
Tel.: (234) 08034746052
ONDO
Beside Acu Gate Oyo Ogbomoso rd, Oyo
Tel.: (234) 08036085533
Akure
Bodija Estate
20 Owo rd,Alagbaka Akure
Tel.: (234) 08023549875
Opp Ss Peter And Paul, New Bodija
Tel.: (234) 7041450199/08032013561
Arakale road Akure
Challenge, Ibadan
72 Arakale road, Akure Ondo State
Tel.: (234) 08037117489
15, Mko Abiola Way, Challenge, Ibadan
Tel.: (234) 08033250192, 02-7525441
Ibadan
Dugbe, Ibadan
49B Idi Ape Iwo road Ibadan
Tel.: (234) 08023048692
8, New Court road Dugbe
Tel.: (234) 08033260417/027523334
5
Branches/outlets
Gbagi market Ibadan
Bola Ige Int’l market,New Gbagi, Old Ife road ,
Ibadan. Oyo State
Tel.: (234) 08023247588
Land Mark University Campus
Tel.: (234) 8068675245
Ekrejeta Quarters , Abraka
EDO / DELTA
Enheren Junction Warri
Iseyin
Mako Allah House, Oja Nla Iseyin
Tel.: (234) 08037188419
Iwo road
122, Iwo road, Abayomi Bus Stop
Tel.: (234) 07041450199/08032013561
Lebanon
43 Lebanon street Dugbe
Tel.: (234) 07041450133/08020523494
New Court road
No 24, New Court road, Ogunpa Dugbe
Tel.: (234) 07041450090/08087180333
Ogbomosho
Ilorin rd,Apake Area, Ogbomoso
Tel.: (234) 08062789028/08129009698
Ojoo
Mile 94 1/2 , Aba Alfa, Onile Aro B/Stop, Ojoo-U.I.
Expressway
Tel.: (234) 08023120938/08129009711
Okebola
Swa/95A, Lagos Bye Pass, Oke Bola
Tel.: (234) 07041450212/08080295888
Owo road, Akure
9, Owo road Alagbaka
Tel.: (234) 07041450218/8033524160
DELTA
Abraka Delsu
Delta State University, Abraka, Delta State
Tel.: (234) 08036294427, 07041450117
Abraka Delsu II
Delta State University, Campus 2, Abraka
Tel.: (234) 08059182230 & 07045699006
Agbor II
Jakpa, Warri
93 Old Lagos Asaba road, Bojiboji Agbor Delta State
Tel.: (234) 08024671077, 07045699002
111 Jakpa rd,Opp Small Mkt,Effurrun Delta State
Tel.: (234) 07045699028;08033517090
Airport road, Warri
Ngc Ekpan Warri
57/58 Airport road, Warri
Tel.: (234) 08034743223, 07045699046
1,Odin rd Ngc Ekpan Warri
Tel.: (234) 07030562426;07045699030
Asaba
Nnebisi road II
144 Dennis Osadebe Way Asaba Delta
Tel.: (234) 08137224048,08035529104
264 Nnebisi road,Asaba
Tel.: (234) 07034082554/07045699012
Asaba Anwai Dual Carriage
Obiaruku, Delta
Lautech Cash Centre
Boyo road, Delta
Ladoke Akintola University
Tel.: (234) 08035065236/08129009807
7,Boyo road.Sapele
Tel.: (234) 08023848449,07045699020
Shaki Netpost
Deco road Warri
Saki Post Office
Tel.: (234) 07041450090
39 Deco road, Warri
Tel.: (234) 08023346723
KWARA
Dennis Osadebe Way
Upper Taiwo, Ilorin
160 Ibrahim Taiwo road Ilorin
Tel.: (234) 0802728600 ,08029009806
Cash Centres / Netpost
Landmark University
Koko, Delta
115, Umusadege rd, Kwale, Delta State
Tel.: (234) 08022245463, 08129009925
258 Nnebisi road Asaba Delta State
Tel.: (234) 08183535790/07041450174
Opp. Irepodun Lga Secretariat, Omu Aran, Kwara
Tel.: (234) 08034700640/08129009803
94 Isoko road, Ughelli.
Tel.: (234) 08039128382, 07045699040
Kwale, Delta
Asaba Nnebisi road
Omu-Aran
Isoko road Ughelli
178 Old Lagos-Asaba rd , Agbor rd , Delta State
Tel.: (234) 07068689757; 07041451187
Dmr Building, Bodija market
Tel.: (234) 08097892143
69, Olofa Way, Offa, Kwara State
Tel.: (234) 08030641441
2, Edjekaye street, Off Nupe Line, Igbudu market
Tel.: (234) 08033319970/07045699054
Agbor
Bodija
Offa
Igbudu market
Along New road ,Beside National Fishing Company
,Koko
Tel.: (234) 08060346858 & 07045699021
CASH CENTRES
19 M/M Way Ilorin
Tel.: (234) 08033935611
25 Effurun Sapele road, Effurun
Tel.: (234) 08022242175/07045699052
Along Old Ughelli rd Agbarho Delta State
Tel.: (234) 08091543112;
Agbarho
45, Anwai Dual Carriage Way, Asaba, Delta
Tel.: (234) 7041450763 , 08025018860
Ilorin
Tel.: (234) 08023031014 ; 07045699010
1, Dennis Osadebe Way By Traffic Light Junction
Asaba
Tel.: (234) 08037882310, 07045699008
Dsc Aladja, Delta
31B Ogoja street, Steel Town 1 Dsc Housing Estate
Tel.: (234) 08033570707, ‘07045699034
Effurun
61, Effurun Sapele road, Effurun
Tel.: (234) 7045699050/ 08053902233
Effurun II
102 Effurun/Sapele road,Delta State
Tel.: (234) 08020523746/07041450063
Effurun Barracks
Effurun Barracks Along Npa Expressway Effurun
Tel.: (234) 08075086006 ,07045000000
46, Old Sapele/Agbor road, Umusume Quarters,
Obiaruku. Delta State
Tel.: (234) 08065817151, 07045699014
Ogharefe
Along Otoroh road Ogharefe Delta State
Tel.: (234) 07045699024, 07082149945
Okpanam road, Asaba
Plot 111,Phase Iv,Core Area Opp Police Hqtrs
Okpanam road Asaba
Tel.: (234) 08035352033,07045699016
Patani road, Ughelli
Ughelli/Patani rd,By Agbarha Junction,Ughelli
Tel.: (234) 07045699032;08160452396
Ppmc Warri
Ppmc Warri Depot Branch, Ekpan, Warri
Tel.: (234) 08035350931/07045699060
Sapele
133 Sapele /Warri road Sapele Delta State
Tel.: (234) 8037980526 / 07045699026
Sapele Amikpe
129, Sapelwarri rd Ajogodo Sapele, Delta State
Tel.: (234) 08061116803/07041450175
Sapele road Warri
138, Warri/Sapele road, Warri, Delta State
Tel.: (234) 8035521248/07045699056
Udu road Warri
38 Udu rd,Enerhen Warri.
Tel.: (234) 07045699044;08035267198
6
Branches/outlets
Ughelli Central
Ugbowo Benin
Port Harcourt Main
74/76 market rd,Ughelli
Tel.: (234) 07045699038;08039676192
254 Ugbowo rd,Benincity.
Tel.: (234) 07045699076;08094322400
Plot 333 Trans Amadi Indusrial Layout.Ph
Tel.: (234) 08023197289/07045696097
Ughelli market
Upper Siluko Benin
Station road, Aba
7/8 Ughelli -Warri road, Ughelli
Tel.: (234) 023250397
232,Upper Siluko rd,Benin City Edo State.
Tel.: (234) 07045699078;08129009919
2 Station road Aba
Tel.: (234) 8033427276
Warri Main market
Upper Uwa, Benin
St Micheal road Aba
#1 market road, Off Warri/Sapele road, Main
market
Tel.: (234) 08023282297
146 Mm Way,Benin
Tel.: (234) 08152677301/07045699080
St Micheals road, Aba
Tel.: (234) 0802696
Wrpc
Uromi
Trans Amadi
22 Mission rd Uromi Edo State
Tel.: (234) 08038771876;
Plot 25A Trans Amadi Industrail Area
Tel.: (234) 8032729525
Uselu, Benin
Umuahia Library road
94 Uselu Lagos road, Benin City
Tel.: (234) 08087180204/07041450150
5 Library avenue Umuahia
Tel.: (234) 8064090067
Uselu road Benin
Cash Centres
192 Uselu Lagos road,Benin City,Edo State.
Tel.: (234) 08023005036/07045699074
Eziukwu
Ekeoha Shopping Centre, Ehi rd Aba
Tel.: (234) 08033301287/07041450389
Warri Refinery And Petrochemical Coy,Ekpan,Warri
Tel.: (234) 08083132293/07041450072
CASH CENTRES
Aladja Dsc Cash Centre
Warri-Deco road
EDO STATE
Akpakpava
60 Akpakpava rd Benin City
Tel.: (234) 07045699068;08033702292
Auchi
67 Igbe road Auchi, Edo State.
Tel.: (234) 08038056821/08077280188
Auchi Polytechnic road
NACA/NETPOST
Ugbowo Netpost
Ugbowo Post Office, Opp Uniben Main Gate, Benin
City Edo State
Tel.: (234) 08034400081/07041450506
SOUTH EAST
Ekpoma
ABIA
Ekpoma Aau
62, Royal market road, Ekpoma
Tel.: (234) 08068116840/07045699082
Ikpoba Hill Benin
Plot 5 Ikpoba Hill Layout Opp Ramat park, Benin
Tel.: (234) 08068287866/07041450044
Ikpoba Slope Benin
160 Akpakpava Ikpoba Slope Benin Edo State
Tel.: (234) 08035351524/07045699062
Mission road Benin
101/105 Mission rd,Benin
Tel.: (234) 08037109516;07045699072
New Lagos rd Benin
3 New Lagos road, Benin City Edo State
Tel.: (234) 08034400081/07041450506
Oba market Benin
28 Oba market rd Benin
Tel.: (234) 08053095009/07045699066
Ppmc Benin
Ipman Secretariat,Ppmc Depot Benin City
Tel.: (234) 08036010084;07045699070
Sapele road Benin
55 Sapele rd Benin City
Tel.: (234) 07036343434;07045699064
Ohafia Post Office, Ohafia Abia State
Tel.: (234) 08035001867/07041450393
ANAMBRA
Awka
35. Auchi Polytechnic road, Auchi, Edo State.
Tel.: (234) 08023350518/08037573473
15/17 Royal market road, Ekpoma
Tel.: (234) 08068116840/07045699082
Ohafia Netpost
Aba Ekeoha
Ekeoha Shopping Centre, Ehi rd Aba
Tel.: (234) 08033301287/07041450389
Aba Factory road
Factory rd ,Aba
Tel.: (234) 07041450398
Aba Faulks road
187 Faulks road Aba, Abai State.
Tel.: (234) 08020523407, 07041450096
Aba Ngwa road
22A Ngwa road Aba
Tel.: (234) 08036701928/07043720527
Aba Old Gra
Plot 44 Old Gra, Aba
Tel.: (234) 08033215478/07041450136
Faulks road Branch Aba
210 Faulks road, Aba
Tel.: (234) 8085873001
Govt. Station Layout Umuahia
Plot 110 Govt Stn. Layout Umuahia
Tel.: (234) 08033294778/07041450225
Micheal Okpara Univ
Michael Okpara University Of Agric,
Umudike Abia
Tel.: (234) 7034184955
Ohafia
19 Arochukwu road, Ohafia
Tel.: (234) 8035001867
Km 42 Enugu Onitsha Expressway Br Awka
Tel.: (234) 08037117191/07041451849
Awka Zik avenue
64 Ziks avenue, Awka Anambra State
Tel.: (234) 08024582013/07041451847
Awka Opp. Govt House
Opposite Govt House,Awka
Tel.: (234) 08087180309,07041450175
Ekwulobia
22 Orlu road Ekwulobia
Tel.: (234) 07089066987/08129009909
Electrical market Obosi
46 Port Harcourt rd, Onitsha
Tel.: (234) 8033570656 / 07041451833
Ihiala
1 Umudimogo rd By Orlu rd Ihiala
Tel.: (234) 070414511839
Nkpor market road
42 New market rd, Nkpor
Tel.: (234) 7041450137,8085839651
Nnewi
48, Nkwo Nnewi market road, Nnewi, Anambra
State.
Tel.: (234) 08023500959, 08035351676,
07041451857
Nnewi Edo Ezemui road
2,Edo Ezemewi road, Uruagu, Nnewi Anambra State
Tel.: (234) 07041450098/08037055767
Onitsha Bakery market
Bakery Materials market, Ogidi
Tel.: (234) 08034618771,08129009900
7
Branches/outlets
Onitsha Bridge Head
Abakaliki State Secretariat
NACA/NETPOST
Electrical Parts Int’l market, Klm 5,Onitsha Owerri
road,Obosi.Anambra State
Tel.: (234) 07041451837/08023371249
Opp Unity Square,Ai
Tel.: (234) 08035481131
Unn Enugu Naca
Onitsha Fegge
Afikpo
2 Eke market road, Afikpo, Ebonyi State
Tel.: (234) 08038067022; 08124617555
University Of Nigeria Enugu Campus
Tel.: (234) 08035499318, 07041450143
33/35 Uga street, Fegge Onitsha
Tel.: (234) 08033456113;07041450209
Onitsha Iweka road
20, Iweka road, Onitsha, Anambra State
Tel.: (234) 08037573779, 07041451831
Onitsha Main market
2A New market rd, Main market Onitsha.
Tel.: (234) 08033446459/07041451845
Onitsha New market rd
27,New market road Onistha
Tel.: (234) 7041450172,8087180355
Onitsha Obodoukwu road
236,Obodoukwu rd,Onitsha,Anambra State.
Tel.: (234) 08036671957/07041451835
Onitsha Ogboefere
Ogboefere market Branch
Tel.: (234) 7041450254,8033871772
Onitsha Old market road
24 Old Mkt rd Onitsha
Tel.: (234) 7041450171,8033017229
Onitsha Old market road II
69 Old market road Onitsha
Tel.: (234) 08033344088
Onitsha Ose market
Ose Mkt Branch Ysg Shopping Comlex ,
Onitsha
Tel.: (234) 08033471886
Onitsha Williams street
7 William street Onitsha
Tel.: (234) 7041450907,8033357444
Uli
Anambra State University Uli
Tel.: (234) 08034538752, 08129009997
CASH CENTRES
Onitsha Promassidor
80 Limca road, Nkpor, Onitsha
Tel.: (234) 08037867445
Umuokpo
Building Material market, Umuokpu,Awka
Tel.: (234) 08087180309,07041450175
NACA/NETPOST
Awka Netpost
Post Office Ziks avenue Awka
Tel.: (234) 08087180309,07041450175
EBONYI
Abakaliki
1C, Ogoja rd Abakaliki
Tel.: (234) 08037456149
Ezza road
Ezza road Abakaliki
Tel.: (234) 08036729685
Okpara Strret Abakaliki
11 Sam Egwu Way, Abakaliki
Tel.: (234) 08037790317
IMO
Assumpta avenue Owerri
No 6 Assumpta ave, Owerri
Tel.: (234) 08063828181/070414511829
Douglas road
126/128 Douglas road Owerri
Tel.: (234) 08033443149, 07041451827
ENUGU
Douglas road II
Agbani road Enugu
59 Douglas road Owerri
Tel.: (234) 08033135834/07041450240
133 Agbani rd ,Enugu
Tel.: (234) 08035351305,08129009889
Emene
174 Old Abakaliki rd.(Opp. Nnpc
Depot),Emene,Enugu
Tel.: (234) 08032751855
Garden avenue Enugu
40 Garden avenue Enugu
Tel.: (234) 08060048366 & ‘08129009879
market road Ogui
5 market road Enugu
Tel.: (234) 08035503646,08129009880
Nsukka
4 University road, Nsukka,Enugu State
Tel.: (234) 08033238609/70414511855
Obollo Afor
Old Otukpo road Obollo Afor
Tel.: (234) 08034096053
Okpara avenue
Mbaise
Ahiara Ahiazu Mbaise
Tel.: (234) 08032547463/07041451823
Obinze, Imo
Opposite Obinze Barracks, Obinze, Owerri
Tel.: (234) 08033448358 & 07041451821
Okigwe B
106 Owerri rd Okigwe Imo State.
Tel.: (234) 07041451819
Orlu
3,Amaigbo road Orlu,Imo State
Tel.: (234) 08033278484;07041451817
Owerri - Okigwe road
13C, Okigwe rd Owerri
Tel.: (234) 07043720533 & ‘08068761990
Wetheral road
102 Wetheral rd Owerri ,Imo State .
Tel.: (234) 07041451825,08035222152
31A Okpara avenue Enugu
Tel.: (234) 08035499318, 07041450143
CASH CENTRES
Okpara avenue II
Concord Hotel Owerri
Tel.: (234) 07043720533 & ‘08068761990
20B Okpara avenue Enugu
Tel.: (234) 08033122061/07041450208
Unn Nsukka
University Of Nigeria Campus Nsukka
Tel.: (234) 08122482461/08129009892
9Th Mile Enugu
19 Old Onitsha road,9Th Mile Corner,Ngwo Enugu
Tel.: (234) 08033484638/08129119757
Concorde
South South
AKWA IBOM
Aka road, Uyo
29 Aka road Uyo Akwa Ibom
Tel.: (234) 08023122267
CASH CENTRES
Barracks road Uyo
Kenyatta
74 Barracks road, Uyo
Tel.: (234) 08023122308/07041451127
21 Amawbia street, Uwani Enugu
Tel.: (234) 08035499318, 07041450143
Ogbette
Ogbete Main market Enugu
Tel.: (234) 08033122061/07041450208
Eta Agbor road
Plot 182, Eta-Agbor road, Opposite Unical, Calabar
Tel.: (234) 08033622868
Eket
15,Grace Bill rd,Eket Akwa Ibom State
Tel.: (234) 08035519344/08022911183
8
Branches/outlets
Eket - Qit
Ikom Calabar
Ikwerre road II
Qit,Opp Mpnu,Ibuno
Tel.: (234) 08023512886/07041450276
72 Calabar road,Ikom
Tel.: (234) 08033018266
No 142 Ikwerre road,Phc
Tel.: (234) 08020523574/07041450102
Ikom
Mary Slessor Calabar
Mile 3 Rebisi
31 Calabar road, Ikom
Tel.: (234) 08033018268
12 May Slessor avenue, Calabar
Tel.: (234) 08037095426/0704320449
21B Amaigbo rd, Mile 3, Diobu, Phc.
Tel.: (234) 08020523576; 07041450103
Oron road Uyo
Nnung Udoe
Mothercat
92 Oron road, Uyo
Tel.: (234) 08024575600/07041450274
12 Uyo road,Nung Udoe
Tel.: (234) 8023088498
Uyo
Obudu Calabar
Tel.: (234) Plot 8.Mothercat,Trans Amadi Ind
Layout,Port Harcourt
Tel.: (234) 07086458033;07041450250
145, Ikot Ekpene rd Uyo
Tel.: (234) 08060032175
2 Govt Station Ranch road,Obudu
Tel.: (234) 8034186012
CASH CENTRES
Ogoja
Eket Cash Centre
8 Hospital road, Ogoja , Cross Rivers State
Tel.: (234) 08036429732
56 Hospital road, Eket
Tel.: (234) 08023512886/07041450276
CASH CENTRES
NACA/NETPOST
Calabar Cash Centre
Nnamdi Azikiwe road Ph
15A Nnamdi Azikwe rd
Tel.: (234) 08036751349/07045699119
Okporo road
Okporo road Branch
Tel.: (234) 08033070722/07041450165
Olu Obasanjo Way Ph
1 Benjamin Okpara street,Phc
Tel.: (234) 8087180226
Abak Netpost
Michael Ani Secretariat, Calabar
Tel.: (234) 08037095426/0704320449
1 Ikot Ekpene road,Abak Net Post
Tel.: (234) 08024575600/07041450274
RIVERS
78 Ahoada road Omoku
Tel.: (234) 08033726361
Uniuyo Naca
Aba road Ph
University Of Uyo
Tel.: (234) 08023122308/07041451127
Presidential Hotel Aba rd Ph
Tel.: (234) 08038856748 & 07041450428
Oyigbo
BAYELSA
Aba road Ph II
Brass, Yenegoa
Along Agip Gate, Brass
Tel.: (234) 8063555261/08129009859
Sani Abacha Way, Yenegoa
Sanni Way, Yenagoa
Tel.: (234) 7086458032
Yenegoa Main
179 Mbiama Yenagoa road Yenagoa Bayelsa
Tel.: (234) 08033570680/08129009858
Yenegoa Mbiama road II
194 Mbiama/Yenagoa road Bayelsa State
Tel.: (234) 08036726840/07045699110
Yenagoa Mbiama road
204B Mbiama/Yenagoa Raod Bayelsa
Tel.: (234) 08020523578;07041450105
CROSS RIVER
Calabar 3
31,Ediba rd,Calabar Cross River State
Tel.: (234) 08023120934
Calabar 2
14 Murtala Mohhamed High Way,Calabar
Tel.: (234) 08037204656/07041450260
Ediba road Calabar
31 Ediba road Calabar
Tel.: (234) 08023281908
Igoli Ogoja Calabar
Plot Mla 19,Hospital road,Ogoja
Tel.: (234) 8027029007
280 Aba rd, Ph
Tel.: (234) 08037825492/07045699099
Ahoada-Abua road
3 Abua road, Ahoada, Rivers State.
Tel.: (234) 08035474074
Omoku
No 206 Old Aba road Mbano Camp Oyigbo Port
Harcourt
Tel.: (234) 08087180230/07041450108
Ppmc Eleme
Ppmc Eleme Phc
Tel.: (234) 8063424390
Prpc
Asei World Center
Opp Ph Refinery Gate Alesa Eleme
Tel.: (234) 08087583289/08056073338
57 Aba road Port Harcourt
Rsust Complex
Bonny Mission road 2
No.10, New road, Bonny Island, Rivers State
Tel.: (234) 08035310965/07041450042
Rivers State University Of Science & Tech. Nkpolu,
Port Harcourt
Tel.: (234) 08023184598
Circular road Ph
Rumokoro
No 176 Aba road,Phc
Tel.: (234) 8035353133
Elele
1 Port Harcourt road Elele
Tel.: (234) 8033613328
Eleme
Eleme/Bori Express road,Alode Eleme
Tel.: (234) 08032926661/07041450235
Eleme Petrochem II
Eleme Petrochemical Branch Eleme Expressway Port
Harcourt Rivers State
Tel.: (234) 07041450189/08033134754
Fleet House
105 Olu Obasanjo road Port Harcourt
Tel.: (234) 07043720435 & 08033099284
Ikwere road
42 Ikwerre road Mile1 Port-Harcourt
Tel.: (234) 07041451115
11 East West road, Rumuokoro, Phc
Tel.: (234) 8037241997
Rumuola
119/121 Rumuola road, Rumuola, Port Harcourt,
Rivers
Tel.: (234) 08033080601/’07045699121
School Of Nursing Ph
Sch Of Nurs Br. Km 6 Ikwerre rd, Mile 4 Rumueme
Tel.: (234) 084-802555
Trans Amadi
13 / 15 Trans Amadi Ind Layout, Port Harcourt
Tel.: (234) 07041450242, 07086458024
Uniport
Uniport Choba park
Tel.: (234) 07041450164-’0808780228
Woji
#46 Woji Estate road,Woji Phc.
Tel.: (234) 08053246839/07045699113
9
Branches/outlets
CASH CENTRES
Dei Dei II
Naowa Shopping Complex
Onne
Deidei Buliding Material market
Tel.: (234) 08037869721/O8057459596
Naowa Shopping Complex, Asokoro
Tel.: (234) 08022239313
Oyigbo
Emab Plaza
Maina Court
Umuegbule
Tel.: (234) 08087180230/07041450108
Suite E1 Plot 751, Aminu Kano Crescent, Wuse 11
Abuja.
Tel.: (234) 08023202146
Plot 252A, Herbert Macaulay Way, Cbd,
Abuja, Nigeria
Tel.: (234) 08062358935/07041450355
FCDA
Mpape, Fct
Uniport Naca
Engineering Dept, Fcda Secretariat, Area 11, Garki,
Abuja
Tel.: (234) 07034051647/08035899186
Ansar Plaza, Mpape Hill Off Maitama, Abuja.
Tel.: (234) 08033172290
Delta park Uniport
Tel.: (234) 07041450164-’0808780228
Federal Secretariat
Mazfallah Plaza, Karu Site
Tel.: (234) 08023569950
Ppmc
NACA/NETPOST
Mazfalah
ABUJA FCT
Federal Secretariat Complex, Phase 2, Block C,
Shehu Shagari Way, Cbd,Abuja
Tel.: (234) 08023217413
Abuja Area Office
Fmbn Complex, Abuja
19 Dunukofia street Area Eleven Garki, Abuja
Tel.: (234) 08091324954
Herbert Macaulay Way Wuse Zone
Tel.: (234) 608023268561
Plot 226, Cadastral Ao Cbd - Abuja - Nigeria
Tel.: (234) 08023569950
Nasco road Kubwa
Abia House Abuja
Fourth avenue, Gwarimpa
Central Area,Abuja
Aminu Kano, Abuja
Aminu Kano Crescent, Wuse 2, Abuja
Tel.: (234) 08023413588
Area 3 Garki
Plot 9A Kontagora Close Jos street Area 3 Garki
Abuja Tel.: (234) 08036334522, 07041450325
Chembian Plaza,4Th avenue,Gwarinpa,Abuja
Tel.: (234) 08037860883/09-8704288-9
Gado Nasco Kubwa
Nafcon, Abuja
Plot 6/11 Gado Nasco road, Federal Housing ,
Kubwa Abuja
Tel.: (234) 07039568782
National Assembly Abuja
186 Gado Nasco road Kubwa Abuja
Tel.: (234) 8023057675
Three Arms Zone, White House Basement, National
Assembly
Tel.: (234) 08033025549
Gana street Maitama
National Assembly Abuja II
51 Gana street Matiama Abuja
Tel.: (234) 08098311704
3 Arm Zone National Assembly Complex Abuja
Tel.: (234) 08033141094/07043720171
Garki 2
Ncc Abuja
Plot 67 Yakubu Gowon Crescent, Asokoro
Tel.: (234) 8082000404
796 Oka Akoko Close Garki 2 Abuja
Tel.: (234) 08036776770
Plot 423 Aguiyi Ironsi St, Maitama,Abuja
Tel.: (234) 08033139565/08099867535
Asokoro II
Asokoro
Garki Area 7
Nexim House Branch
Plot157, Yakubu Gowon Way,Asokoro .Abuja
Tel.: (234) 07081432919
603 Dambata Close, Area 7, Garki
Tel.: (234) 08138819397
Nexim House, Kur Mohammed St. Cbd,Fct Abuja
Tel.: (234) 07030999234
Cadastral Zone A08
Gowon Barracks
Nicon House, Abuja
Plot 114 Adetokunbo Ademola Crescent, Cadastral
Zone A08, Wuse 2, Abuja
Tel.: (234) 08023123147
Naowa Centre Asokoro
Tel.: (234) 08033202253/08129009758
Gwagwalada
Nicon House Branch - Plot 242 Muhammadu Buhari
Way Cbd Abuja
Tel.: (234) 08023030952
Cairo street Wuse 2
7A Secretariat road, Gwagwalada
Tel.: (234) 07041450334/08034503908
23, Atbarat street, Off Cairo street, Wuse II - Abuja
- Nigeria
Tel.: (234) 8036736990
Casamance street (Zone 3)
Plot 2263, Casamance street, Wuse Zone 3, Abuja
Tel.: (234) 08037189286
Central Area
Plot 251 Herbert Macaulay Way, Millennium Builders
Plaza,Cbd- Abuja
Tel.: (234) 08020523557
Ecowas
Plot 101, Yakubu Gowon Crescent, Asokoro - Abuja
Tel.: (234) 08036163397/07041450122
Deidei
C3 802 International Building Materials market, Dei
Dei, Abuja –Fct, Nigeria
Tel.: (234) 08127290688/07041450794
Gwagwalada II
355 Specialist Hospital road-Gwagwalada Abuja
Tel.: (234) 08035876038
Gwarimpa Abuja
Beside Chembian Plaza,4Th avenue,Gwarinpa,Abuja
Tel.: (234) 08025019818/09-8701883
Jabi
No 1 Idris Ibrahim Crescent Off Obafemi Awolowo
road, Jabi
Tel.: (234) 08036121461/08129009801
Kado Fish market
Plt 217, Cadastral Zone Co2 Kado Fish market, Life
Camp Abuja
Tel.: (234) 08033140527
Le Meridian
Plot 903, Tafawa Balewa Way, Nicon Luxury Hotel,
Abuja
Tel.: (234) 07043720138/08033448584
Nkegwu Plaza Area 1
Nkwuegu Plaza , Old Federal Secretariat rd, Area 1
Tel.: (234) 08033194033
Nnamdi Azikiwe Airport
Nahco Warehouse, Nnamdi Azikiwe Airport, Abuja
Tel.: (234) 08034505236/ ‘08129009799
Nyanya
22, Hospital road, Area B Nyanya - Abuja - Nigeria
Tel.: (234) 08037870709
Nnpc Abuja
Nnpc Towers Herbert Macaulay Way Central
Business District Abuja
Tel.: (234) 08036260956
Nspmc Abuja
160, Samuel Ladoke Akintola Boulevard, Garki 11
Abuja
Tel.: (234) 08030693775/097802065
Oagf
Treasury House, Garki Abuja
Tel.: (234) 08034332040
10
Branches/outlets
Ogbomosho road
Makurdi
KANO
3 Ogbomosho street, Area 8, Garki, Abuuja
Tel.: (234) 08034013767
86 Old Otukpo rd High Level
Tel.: (234) 08034735489
Bello road
Petroleum Equalisation Funds
Makurdi road Lafia
Plot 622 Ambassadorial Conclave, Cbd, Abuja
Tel.: (234) 08056192271/07026306121
No.48 Makurdi rd, Lafia Nasarawa State
Tel.: (234) 08099933818
11E Bello road, Kano - Nigeria
Tel.: (234) 08035886646/07041450309
Shippers Council
Otukpo
Plot 438 Michael Okpara street, Wuse Zone 5, Abuja
Tel.: (234) 0803824149
19, Federal road Otukpo,Benue State
Tel.: (234) 08063523636
Treasury House
Ogiri Okoh road Makurdi
Office Of Accountant General Of The
Federation,Samuel Ladoke street Garki 11 Abuja
Tel.: (234) 8034332040
Along Ogiri Okoh road, Old Gra Makurdi, Benue
State.
Tel.: (234) 08027486673
Utako
BORNO
Befs Plaza , Opposite Mountain Of Fire H/Q Utako
Abuja
Tel.: (234) 08087180775/08129009781
Wuse 2
Plot 212 Ademola Adetokunbo Wuse 2 Abuja
Tel.: (234) 08023077804/07041450032
Zone 4
Plot 2306 Suez Crescent Wuse Zone 4, Abuja
Tel.: (234) 8037051101
Zone 4
Kashim Ibrahim
12 Sir Kashim Ibrahim Way Maiduguri
Tel.: (234) 08065987410
Kashim Ibrahim II
2 Kirikasama road, Maiduguri, Brono State
Tel.: (234) 8036401492
Kiri Kasama Maiduguri
9/10 Kiri Kasama rd Maiduguri
Tel.: (234) 08065703795
2097 Herbert Macaulay Way Wuse Zone 4
Monday market Maiduguri
NORTH
No 6 Opp Galadima Kyari Drive Monday market
Maiduguri
Tel.: (234) 08036814389
ADAMAWA
Univ. Of Maiduguri
Bishop street Yola
University Of Maiduguri
Tel.: (234) ‘08038574648
No. 2 Bishop street Yola
Tel.: (234) 08036161694
GOMBE
Mubi, Adamawa
Gombe
60, Ahmadu Bello Way, Mubi South
Tel.: (234) 08036283987
16 Biu road Gombe
Tel.: (234) 08032407934
Numan
Gombe market road
Km 81 Yola Gombe road Numan
20/21.New market road.Gombe
Tel.: (234) 08036785803/08189775950
Yola
31 Galadima Aminu Way Jimeta-Yola
Tel.: (234) 08073331100,08129119739
BAUCHI
Bauchi
No 21 Abdul Kadir Ahmed road Bauchi
Tel.: (234) 08035303030
M/Mohammed Way
7, Murtala Mohammed Way Bauchi
Tel.: (234) 08035893929/ 07084100079
Gombe Ultra Modern market
Gombe Local Govt Shopping Complex,Along Emir`S
Drive,Gombe
JIGAWA
Dutse
Beside Old Secretariat, Kiyawa road-Dutse- Jigawa
State
Tel.: (234) 08061626655
Hadejia, Jigawa
BENUE
10 Maje road, Hadejia Jigawa State
Tel.: (234) 08079361738/08060992507
Gboko
Jigawa
44 J.S. Tarka Way, Gboko
Tel.: (234) 08023045709
Gboko road
89 Gboko road Makurdi Benue
Tel.: (234) 08034373199
Plot C2-rd/Ss02 Layout, Sani Abacha
Way,Dutse,Jigawa State
Tel.: (234) 08034702091/Na
Birnin Gwari
Lagos-Kaduna Exp. road
Tel.: (234) 08034413536
Bye Pass (Tundun Wada) Kaduna
Km 16 Nnamdi Azikiwe Express Way, Kaduna
Tel.: (234) 08034101104
Dawanau market
Dawanau market Br Kastina road Kano
Tel.: (234) 08064911484
France road
5B France road, Sabon Gari, Kano - Nigeria
Tel.: (234) 8057822606/07041450052
Giwa
Along Zaria/Funtua road, Giwa Local Govt., Kaduna
Tel.: (234) 08065653445
Hotoro
Maiduguri rd, Opp Nnpc Depot Hotoro Kano
Tel.: (234) 08035350773
Ibrahim Taiwo
341, Naibawa, Kano
Tel.: (234) 07086498850
Kachia
Kaduna/Zonkwa road, Sabongari, Kachia, Kaduna
State
Tel.: (234) 07063969099
Kafanchan
91B Kagoro road, Near New World Hotel, Kafanchan,
Kaduna State
Tel.: (234) 08131653706
Kofar Ruwa
Dala road, Kofar Ruwa market, Kano
Tel.: (234) 08028502437
Kano City
Abdullahi Wase road By Shahuchi Pry Sch. Kano City
Tel.: (234) 08037045008
Kasuwa Birchi
Bb3, Ibrahim Taiwo road, Tudun Wada Kaduna
Tel.: (234) 08037042282
Kawo, Kaduna
11 Ali Akilu road, Kawo. Kaduna
Tel.: (234) 08037471047
M/Mohammed Way Kano
Murtala Mohd Way Kano
Tel.: (234) 08023598047
M/Mohamed Way Kano II
192 Murtala Mohammed Way
Tel.: (234) 08023785395
M/Mohammed Way Kano III
13C Murtala Muhammed Way,Kano
Tel.: (234) 80336528412
11
Branches/outlets
Nda Kaduna
CASH CENTRES
Naca/Netpost
Ribadu Cantonment, Kaduna
Tel.: (234) 07041005484
National Eye Centre Kaduna
Ajaokuta Netpost
Ppmc Kaduna
20 Ali Akilu rd, Kaduna Main
Tel.: (234) 08036006418
Net Post, Ajaokuta Post Office, Kogi State
Tel.: (234) 08033515111/07041450636
NACA/NETPOST
NASARAWA
Abu Zaria Naca
Doma
Congo Campus, Abu Zaria
Tel.: (234) 08034067823
69 Lafia road Opp Doma L.G. Sect. Nasarawa State
Tel.: (234) 8034954627
Saminaka
Katsina
Jos road Lafia
Alond Jos rd., Ahmadu Bello Way, Saminaka, Kaduna
Tel.: (234) 08032849500
Kafar Kaura
Krpc/Ppmc Refinery Complex, Km16 Kachia road
Kaduna
Tel.: (234) 08098104533
Sabon Gari
10/11 France Raod, Sabon-Gari, Kano
Tel.: (234) 08034511307, 07055146130
Yankura
71A Murtala Mohd Way, Kano
Tel.: (234) 08031323519
Ibb Way, Kofar Kaura, Katsina. Tel.: (234) 08036786892/065-290123
Katsina
32, Jos road, Lafia Nasarawa State
Tel.: (234) 08036144292
Karu
Plot 13138,Abuja/Keffi road,Near Mararaba Sharp
Corner
Tel.: (234) 8033109774
Zaria road Kano
Katsina
Tel.: (234) 08031824623
23,Gyadigyadi Round About, Zaria road,Kano
Tel.: (234) 07061370185
KEBBI
Along Keffi/Abuja rd Mararaba
Tel.: (234) 08060122254 ;07041450339
Zoo road Kano
Ahmadu Bello Way Kebbi
No 5 Zoo rd, Kano
Tel.: (234) 08029036964/08034532987
71, Ahmadu Bello Way, Birnin Kebbi, Kebbi State,
Nigeria.
Tel.: (234) 08036067230/Na
Nassarawa Town
KADUNA
Ali Akilu road
5/7 Ali Akilu road Kaduna
Tel.: (234) 08023582330
Junction road
4, Junction road, Kaduna
Tel.: (234) 08035520469/07041450141
Kaduna Ahmadu Bello Way
6A, Ahmadu Bello Way, Kaduna
Tel.: (234) 08034067823
Kaduna Central market
Ibrahim Taiwo road, Kaduna
Tel.: (234) 08033503433
Kaduna Main
20 Ali Akilu rd, Kaduna Main
Tel.: (234) 08036006418
Kaduna Poly
Kaduna Poly Main Campus T/Wada
Tel.: (234) 08087187848
Kaduna South
Az 23, Kachia road, Kaduna
Tel.: (234) 08088988931
Krpc
Km16, Kachia road, Krpc Complex Kaduna
Tel.: (234) 08023928400/07041450071
Naf Base Kaduna
Airforce Base Mando Kaduna
Tel.: (234) 08023444011
Zaria
F7. Pz Area, Kaduna road.Zaria
Tel.: (234) 08025010220
Aliero
Onion market Along Jega road,Aliero Kebbi State
Tel.: (234) 08035813436
Mararaba
No,8 Umaru Makama Dogo Streat
Tel.: (234) 08065639116
Nasarawwa State Univ.Keffi
Nassarawa State University Keffi
Tel.: (234) 08189899574
Argungu
NIGER
Ahmadu Bello Argungu
Tel.: (234) 08036870229
Bida
Birnin Kebbi
Ahmadu Bello Way Birnin
Tel.: (234) 08036531394
Jega, Kebbi
Opp New market, B/Kebbi rd , Jega
Tel.: (234) 08035776440
Yauri, Kebbi
Along Kontagora/Lagos Highway, Yauri Kebbi State
Tel.: (234) 08064065291,08087000000
No 10 Bcc road, Bidal
Bosso road Minna
Sw 36,Central Business Area Bosso road Minna
Tel.: (234) 08032480909
Kontagora, Niger
Plt 139 Yauri rd.Opp. N/Mkt
Tel.: (234) `08035475409
Madalla
Zuru, Kebbi
Opp Mobil Filling Station, Kaduna/Abuja Expressway,
Madalla, Niger State
Tel.: (234) 08035879235
No 1 Emir Sani Sami road, Zuru, Kebbi State
Tel.: (234) 08039297110
Minna
KOGI
Ibb Way Lokoja
103 Ibb Way Near State Sub Treasury Lokoja
Tel.: (234) 08060234669
Idah
Federal Polytechnic Idah
Tel.: (234) 08053789145, 08129009766
Lokoja
Plot 5 Ibb Way Ganaja Junction Opp Stella Obj,
Lokoja Kogi State
Tel.: (234) 08037636250/08129009767
Obajana
Opposite Obajana Cement Factory, Obajana, Kogi
State
Tel.: (234) 08062329310
Plot 1150 Paiko road Opp Cbn Minna
Tel.: (234) 08035978640
Suleja
Plot 78, Usman Faruk road, Opp Mr. Biggs Suleija
Niger State
Tel.: (234) 08032596717
PLATEAU
Ahmadu Bello Way
5 Ahmadu Bello Way Jos
Tel.: (234) 08033454222
Ahmadu Bello Way II
35 Ahmadu Bello Way Jos
Tel.: (234) 08033370360
Bukuru
8 Constitution rd Bukuru Jos
Tel.: (234) 08033800312
12
Branches/outlets
Rwang Pam Jos
Tel.: (234) 08087180340
No 20 Rwang Pam Jos, Plateau State
Tel.: (234) 08034510592
Kaura Namoda
Naca/Netpost
Unijos Naca Center
Naraguta Unijos Campus
Tel.: (234) 08033371360 /07041450912
SOKOTO
Ileila
Konni road Opp Central Mart Illela
Tel.: (234) 08065728160
Kano road Sokoto
41, Kano road, Sokoto, Sokoto State.
Tel.: (234) 08028906478/Na
Kano road,,Sokoto II
6 Kano road Sokoto
Tel.: (234) 08035950855
Sokoto - Dogon Daji House
No. 19 Sultan Bello road, Old market
Area, Old market Branch, Sokoto State.
Tel.: (234) 08087180340
Sokoto Main
Sultan Bello road Old market Sokoto
Tel.: (234) 08086531999
Sokoto market
18, Kano road, Sokoto. Sokoto State
Tel.: (234) 08124493030
TARABA
Jalingo
21 Hammaruwa Way
Tel.: (234) 08091258083/08129009873
YOBE
Damaturu market
Bukar Abba Ibrahim Way, Damaturu
Yobe State
Tel.: (234) 08039245544/08023557866
Gashua
Near Central market Gashua, Yobe State
Tel.: (234) 08036159845
Potiskum
No.137 Mohammed Idriss Way, Potiskum
Tel.: (234) 08034499221,08185780443
ZAMFARA
Fce Gusau
Fce(T) School Complex Zaria road Gusau
Tel.: (234) 08058885452
Gusau
Sani Abacha Way, Opp Cbn, Gusau Zam
State
Tel.: (234) 08035879607
Gusau II
No.10, Zaria Sokoto road, Gusau, Zamfara
State
12 Shinkafi road Kaura Namoda Zamfara
Tel.: (234) 08032439034
Talata Mafara
Plot 7 Sokoto-Zaria road,Talata Mafara
Zamfara
Tel.: (234) 08034315050
13
Content
General information
Chairman’s statement
Report of the Directors
Profile of the Directors
Corporate Governance report
Board Appraisal Report
Statement of Directors’ responsibility
Report of the Independent Auditor
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of prudential adjustments
Statement of Cash Flows
Notes to the financial statements
14
15
17
21
29
33
34
35
36
37
38
39
40
41
14
General information
Directors, professionals, address
Directors
The Olor’ogun S. F. Kuku, OFR -Chairman
Jibril Aku -Managing Director
Alhaji Muazu Anache -Director
Chief Wilfred Belonwu -Director
Mr. Edouard Dossou-Yovo -Independent Director
Mr. Orikolade Karim -Director
Mr. Olufemi Ayeni -Independent Director
Mrs. Funmi Oyetunji -Director
Mr. Thierry Tanoh -Director
Madame Eveline Tall -Director
Ms. Foluke Aboderin -
Executive Director, Corporate Bank
Mr. Oladele Alabi -
Executive Director, Finance & Control
Mr. Kingsley Aigbokhaevbo -
Executive Director, Lagos & West
Mr. Henry Ajagbawa -
Executive Director, South-South/South East
Mr. Shehu Jafiya -
Executive Director, Abuja & North
Company secretary
Adenike Laoye
Registered office
21 Ahmadu Bello Way
Victoria Island
Lagos, Nigeria
Independent auditors
Akintola Williams Deloitte
235, Ikorodu Road, Ilupeju
P.O. Box 965, Marina
Lagos, Nigeria
Registrar
EDC Securities Limited
137/139 Broad Street
Lagos Nigeria
01-7301231
15
We successfully completed the integration of staff
and operations early on in the year but continued to
operate two core banking applications until the end
of the year. This, of course resulted in challenges
which have now however been surmounted with
the successful migration of Finacle to Flexcube in the
first quarter of 2013. Despite the use of two sets of
core banking application in the course of 2012, our
performance significantly improved over the previous
year while our indices in most areas also experienced
significant growth.
Indeed, based on its current size, the bank is now
regarded as a Tier 1 and systemically important Bank
and we are on the right path to attaining our objective
of being one of the Top Three Banks in Nigeria within
the next three years.
“I am pleased to present to you the
financial statements of the Bank for
the year ended December 31, 2012.
2012 was the year in which the Bank
consolidated its operations with former
Oceanic Bank International Limited,
following the merger at the end of
December 2011. With the merger, the
Bank experienced significant growth
in its branch network, number of
employees and asset size amongst
others.”
Financial Results
In 2012, our total earnings grew significantly from
N67.77billion recorded in 2011 to over N156.98billion.
Our total assets and Contingencies grew by N240.23
billion from N1.09 trillion to over N1.33 trillion,
representing a 22% growth. This arose from the
combination of deposit growth and capital injection.
We recorded profit after tax of N7.8 billion for 2012,
again a significant improvement over the performance
of 2011.
Certainly, our improved performance affirms that the
Bank can only continue to grow. Our fundamentals
continue to improve and remain strong and we
expect much better results ahead in order to compete
effectively
People and Processes
During the year and pursuant to the merger, the Bank
focused on culture change programs and training
for staff, in order to ensure full integration and
cohesiveness of its larger workforce.
The acculturation process which started at the
beginning of 2012 is already yielding fruits; improved
staff efficiency is evident across the various business
units.
Our processes were also integrated and despite the
challenges of operating two core banking applications,
our staff embraced the challenges in order to ensure
that we serve our customers.
Our employees are our invaluable asset as they remain
committed to ensuring the attainment of the Bank’s
objective of becoming one of the ‘top three’ banks in
the country within the next three years.
The Bank’s Executive Management remained stable
during the year and this has helped us focus and stay
close to the customers.
16
The experience, knowledge and skills of all our
employees continue to be a crucial element in the
success of the Bank. I take this opportunity to thank
all our employees for their hard work and dedication
during the year.
We will continue to recognize exceptional performance
of staff and reward appropriately.
The Board
The Board remained essentially stable during the
year. The only changes were the following: the
resignation of Mr. Arnold Ekpe who retired from the
Ecobank Group as Group Chief Executive Officer after
a very successful tenure in which the Ecobank Group
grew significantly with presence in over 33 countries
in Africa and Europe. On behalf of the Board, I
sincerely commend Mr. Ekpe for his selfless service to
the Ecobank Group and wish him every success and
fulfillment in retirement.
Dr. Nadu Denloye also resigned from the Board in
2012. On behalf of the Board I express appreciation to
her for her contributions on the Board and to the Bank.
Corporate Social Responsibility (CSR)
In 2012, Ecobank sustained its support and
empowerment of people within its operating
environment. Health, education and general public
welfare were all considered in our choice of CSR
support during the year. The Ecobank Foundation, the
corporate philanthropic arm of the Ecobank Group
partnered with and supported various communities
within the African continent, including Nigeria in
impacting lives of those in need.
Looking Ahead
2013 for us is the year to consolidate and to begin to
reap benefits from our business merger with former
Oceanic Bank. We will continue to leverage on our
strengths by remaining amongst the top banks in
Nigeria, providing the banking needs for all Nigerians,
no matter their class or location and ensuring
realisation of the Central Bank’s initiative on financial
inclusiveness. Indeed we will strive to be the retail
bank of choice and utilize our strength as the truly
Pan African Bank to ensure optimal customer service
delivery.
Conclusion
In conclusion, I extend the sincere appreciation of
the Board of Directors to our devoted customers and
staff and of course our regulators for their support,
understanding and co-operation, as we look ahead to
continued improved performance.
Thank you all.
17
Report of the Directors
The Directors are pleased to submit their report together with the
financial statements for the year ended 31 December 2012.
1. Results
The Profit of the Bank after
providing for taxation was
Transfer to Statutory Reserve
Transfer to Retained Earnings
2012
N’milion
2011
N’milion
(Restated)
7,805
19,344
7,805
19,344
2. Legal form
The Company, which was incorporated on October
7, 1986 as a Public Limited Liability Company,
commenced business on April 24, 1989. Pursuant
to Federal High Court Lagos sanction of a Scheme of
Arrangement of the Company’s capital on December
30, 2011, Ecobank Transnational Incorporated (ETI)
became the sole beneficial shareholder of the
Company but the Company remained a public limited
liability company until it was, re-registered as a private
Limited Liability Company on April 5, 2012.
3. Principal activities and business review
The Bank is engaged in the business of commercial
banking with national authorisation.
During the year, the Bank essentially completed the
integration of former Oceanic Bank with its operations.
This impacted significantly and positively on the
activities of the Bank. The Bank focused on culture
change programs and training while also ensuring
integration of its processes.
The Bank also received and capitalized a total sum
of US$400million (NGN64billion) from its parent
company, Ecobank Transnational Incorporated.
Current Holdings of Directors
Olor’ogun S. F. Kuku, OFR
Alhaji Mua’zu Anache
Chief Wilfred Belonwu
Mr. Edouard Dossou-Yovo
Mr. Kola Karim
Mme. Eveline Tall
Mr. Thierry Tanoh
Mr. Femi Ayeni
Mrs. Funmi Oyetunji
Jibril Aku
Foluke Aboderin
Kingsley Aigbokhaevbo
Dele Alabi
Henry Ajagbawa
Shehu Jafiya
The Bank continued to be organized along business
lines: Domestic Bank (DB) and Corporate and
Investment Banking (CIB); which is further broken
into Treasury and Corporate Banking, all supported
by Operations & Technology, Risk Management, Legal
Finance, Audit, Internal Control and Human Resources.
Two key products were launched during the year –
“Ecobank Mobile Money”, a fully integrated mobile
banking platform from Domestic Bank and “OMNI”, a
self-service collection platform specifically designed for
our corporate clients from Corporate Bank.
There are no inhibiting factors which would affect the
Bank continuing as a going concern.
4. Directors
4.1 The names of the current directors are listed in this
Annual Report.
4.2 Since the last Annual General Meeting held on
July 27, 2012, Mr. Thierry Tanoh was appointed
as director by the Board of Directors, while Mme.
Eveline Tall became a substantive director.
A resolution would be proposed to shareholders
at the Annual General Meeting in respect of their
appointments.
Mr. Arnold Ekpe and Dr. (Mrs.) Nadu Denloye
resigned as directors from the Board.
4.3 In accordance with Article 93 of the Bank’s Articles
of Association, The Olor’ogun S.F. Kuku, OFR and Mr.
Edouard Dossou-Yovo retire by rotation and being
eligible, offer themselves for re-election.
31 December 2012
31 December 2012
31 March 2012
31 March2012
Direct
Indirect
Direct
Indirect
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
18
Report of the Directors (Cont’d)
6. Analysis of shareholding
Authorized Shares: 30,000,000,000
Quantity Issued : 18,482,529,765
Analysis of shareholding
Number of
Shareholders
% of
Shareholders
Number of
Holdings
%
Shareholding
1
1,000,000,000
1
1
0.00
100.00
1
18,482,529,764
0.00
100.00
Total:
2
100.00
18,482,529,765
100.00
Share Range
These figures are as at 31 December 2012.
7. Substantial interest in shares
Ecobank Transnational Inc. (ETI)
Nigerian Citizens and Associations
Number
31 December 2012
%
Number
31 March 2012
%
18,482,529,764
1
100
00.0
27,919,198,911
1
100
0.00
18,482,529,765
100
27,919,198,912
100
During the year, by order of the Federal High Court Lagos, the Bank’s issued share capital was reduced from
N13,959,599,453.50 to N5,904,043,900, to eliminate the negative reserves which arose from ETI’s acquisition
of controlling stake in former Oceanic Bank International Ltd. (OCB). OCB subsequently merged with Ecobank
Nigeria, leaving Ecobank Nigeria as the surviving entity.
Also within the year the Board of Directors, upon authorization from the shareholders also allotted 6,674,441,964
shares to ETI in consideration for Deposit for shares of N66,744,419,640. Consequently the issued share capital of
the Bank is presently N9,241,264,882.50
8. Donations and contributions made by the bank during the year amounted to N 86,000,000
Description
Amount (n)
Donation to Ogun State Security Fund
Donation to St. Augustine University – Lagos
Donation to SOS Children Village Nigeria – Jos
Donation to SOS Children Village Nigeria – I solo
Donation to SOS Children Village Nigeria – Owe Jibe
Donation to SOS Children Village Nigeria – Gwagwalada
75,000,000
5,000,000
1,500,000
1,500,000
1,500,000
1,500,000
86,000,000
9.Fixed assets
Movements in fixed assets during the year are shown in note 24 on page 64. In the opinion of the Directors, the
market value of the Company’s properties is not less than the value shown in the Financial Statements.
10. Employment and employees
Employment of Disabled Persons
It is the policy of the Company that there should be no discrimination in considering applications for employment
including those from disabled persons. All employees are given equal opportunities for self-development. As at
December 31, 2012, one disabled person was in the employment of the Company.
Employee Involvement and Training
The Company is committed to keeping employees fully informed as much as possible regarding the Company’s
performance and progress and seeking their views wherever practicable on matters, which particularly affect
them as employees.
19
Management, professional and technical expertise
are the Company’s major assets and investment in
their further development continues.
Training is carried out from entry level through various
levels with both in-house and external courses.
Mandatory Virtual Training is also done by all staff
regardless of their level.
continent. We embrace social and environmental
issues, including challenges relating to ecology,
healthcare and education. We are committed to
making a strong economic and social contribution
in our local communities, whilst safeguarding the
environment for future generations. We continue to
do this within Nigeria.
Health, safety at work and welfare of employees
Health and safety regulations are in force within the
Company’s premises and employees are aware of
safety regulations. The Company provides subsidies
for all employees for medical, transportation, housing
and lunch. Incentive schemes designed to meet the
circumstances of each individual are implemented
wherever appropriate, and some of these include
bonuses, salary review, promotion, use of health
management organizations for medical and gratuity
for long service.
12. Ecobank foundation
The Ecobank Foundation was set up as part of the
Ecobank Group’s mission to contribute, beyond
banking, to the development of all of the African
countries in which it operates. Up to one percent
of profit after tax of the Ecobank Group is set aside
for the Foundation to support projects, independent
of Ecobank, that promote gender equality, youth
engagement, education, healthcare and culture. Since
2005, the Ecobank Foundation has funded a total of
approximately US$2million of social welfare initiatives.
Gender analysis as at 31 December 2012
(a) Analysis of total employees by Gender
To expand the scope of its activities, it has entered
into partnerships with organizations including the
Pathfinder Foundation, the Western Union Foundation
and USAID. This strategy has proved effective,
resulting in projects that will have a direct impact on
more than 25,000 people of all ages within several
regions of Africa.
Employees
Male
Number
Female
Total
4,363
2,825
7,188
Percentage
Male Female
61%
39%
(b) Analysis of board and top management staff by
gender
Assistant
General
Managers
Deputy
General
Managers
General
Managers
Board members (NonExecutive
Directors)
Board
members
(Executive
Directors)
Male
Number
Female
Total
Percentage
Male Female
37
17
54
69%
31%
14
3
17
82%
18%
9
5
14
64%
36%
7
2
9
78%
22%
5
1
6
83%
17%
72
28
100
72%
28%
11. Corporate Social Responsibility and Sustainability
The Ecobank Group business model and key
performance indicators take into account Ecobank’s
commitment to the economic development of Africa.
Ecobank is conscious that its progress must go handin-hand with the sustainable development of the
13. Diversity and inclusion
Ecobank, by virtue of its geographical spread, is one
of the most diversified groups in Africa in terms of its
people. Ecobank also has a policy of ensuring diversity
in its employee talent pool without compromising
the quality of its staff. Regular reports are presented
and monitored to ensure adherence to policy. Within
the Ecobank Group, we communicate in English,
French and Portuguese. Reflecting our commitment
to equality of opportunity, 44% of our workforce and
31% of our management team are female.
14. The environment
As a responsible corporate citizen, Ecobank aims to
operate in a way that minimizes its carbon footprint.
In 1999, the Ecobank Group adopted a general policy
that outlined its commitment to a clean and green
environment, requiring all Ecobank subsidiaries to be
environmentally responsible. For example, all staff are
discouraged from printing electronic message unless
absolutely necessary.
Ecobank has adopted a Social and Environmental
Management System (SEMS) and group-wide policy
guidelines that govern project financing and other
credits. Environmental Coordinators are present in
the Bank to ensure that we abide by the SEMS and its
policy requirements. Environmental and Social (E&S)
assessments are carried out on lending proposals to
ensure policy compliance.
20
The Ecobank Group has centralized credit approval
processes to ensure all lending activities remain
consistent with the SEMS and policy guidelines. We
are required to conduct social and environmental due
diligence for projects. Any socially or environmentallysensitive projects are monitored to ensure that
client companies demonstrate compliance with
environmental standards or sign up to a corrective
action plan where necessary.
15. Paper usage
We have deployed workflow solutions, which
automate account opening/maintenance and funds
transfer, as we seek to move closer towards paperless
business. We are increasingly adopting the usage of
electronic forms that will reduce paper usage as well.
16. Energy
To reduce energy consumption, we promote the use
of electronic communications (such as video and audio
conferencing) within the Group, thereby reducing the
need for air and road travel. We are also working on a
group-wide energy audit to promote the use of more
environmentally friendly appliances such as energy
efficient light bulbs and air conditioners.
17. Board audit & compliance committee
The Company has in place a Board Audit & Compliance
Committee with the following directors as members as
at December 31, 2012:
i.
Alhaji Muazu Anache
Chairman
ii.
Member
iii.
Mr. Kola Karim Member
iv.
Member
By order of the Board
Adenike Laoye
Company Secretary
15 March 2013
FRC/2013/CIBN/00000002048
21
The Olor’ ogun (Dr.)
Sonny Folorunso Kuku,
OFR
Alhaji Muazu Anache
Non – Executive
Director
Chairman of the Board
Born 1944, Dr. Kuku is a renowned Physician, Scholar
and Administrator. He has been Joint Chief Medical
Director and Chairman at EKO Hospital (Ekocorp Plc)
which he co-founded in 1978.
Dr. Kuku has also been a Trustee and a Distinguished
Fellow of the National Postgraduate Medical College
of Nigeria, President and Trustee West African College
of Physicians. A past Chairman of the Committee of
Pro-Chancellors of State Universities and Committee
of Chairmen of Federal Tertiary Hospitals, he was a
recipient of the First Distinguished Alumnus Award
University of Lagos and Ambassador of Goodwill
Award, City of Freetown. The first African Master of
the American College of Physicians, he is a Fellow of
the prestigious Nigerian Academy of Science. He was
a Director of Midas Merchant Bank and is Chairman of
Midas Stockbrokers Limited. He was the Chairman of
the Human Capital Policy Commission of the Nigerian
Economic Summit Group. He is an Officer of the Order
of the Federal Republic (OFR).
Dr. Kuku was the immediate past President, King’s
College Old Boys Association and current Chairman,
Board of Management University College Hospital
Ibadan. He joined the Board of Ecobank Nigeria Plc in
2004 and was appointed Chairman in March 2010.
Born 1954, Alhaji Anache is a non-Executive Director.
He obtained a National Certificate of Education from
the Advanced Teachers College, Minna, Niger State in
1978 and a Higher National Certificate in Accounting
from the Dundee College of Commerce, Scotland in
1982. Alhaji Anache is a member of the Institute of
Chartered Secretaries and Administrators and was with
the Niger State Development Company Limited as the
General Manager Administration/Company Secretary.
Alhaji Anache is a Director of the Niger State Supply
Company Limited. He joined the Board of the Bank in
March 2005.
22
Chief Wilfred A.
Belonwu
Non – Executive
Director
Born 1942, Chief Belonwu is a distinguished
accountant and graduate of the University of Nigeria,
Enugu Campus. He is a fellow of the Association of
National Accountants of Nigeria.
From 1974 to December 2005, Chief Belonwu worked
in different positions in Mobil Producing Nigeria
Unlimited (MPN) and Mobil Oil Corporation New York.
He was Executive Director Finance/Chief Financial
Officer and rose to the position of Vice-Chairman
of MPN a position he held between January 2004 –
December 2005 when he retired.
Chief Belonwu has had extensive experience in
financial analysis, internal audit and financial control.
He is bringing over 31 years’ experience in a major
international conglomerate to Ecobank. He joined the
Board of the Bank in September 2006.
Mr. Thierry Tanoh
Non – Executive
Director
Born 1962, Mr. Thierry Tanoh joined the Ecobank
Group as CEO of Ecobank Transnational Incorporated
in July 2012, as part of succession plan put in place
pursuant to the retirement of Mr. Arnold Ekpe, at
the end of 2012. Before joining the Ecobank Group,
Mr. Tanoh worked with the International Finance
Corporation (IFC), a member of the World Bank Group
and a global financial institution that supports private
sector development in developing countries. During
his 17-year career with the IFC, Mr. Tanoh played a
key role in expanding the latter’s investment activity
in Sub-Saharan Africa from USD 140 million in 2003
to more than to $3.5 billion in 2011. During this time,
his responsibilities included business development,
deal structuring and processing of some of IFC’s largest
transactions, before taking on a broader management
role.
Mr. Tanoh joined IFC in 1994 through the young
professional program. He initially worked in the Asia
Department. He then specialized in the chemicals and
petrochemicals sector, working on transactions in Asia,
Latin America and Eastern Europe. He moved to Rio de
Janeiro, Brazil in 2001, focusing on transactions in Latin
America. He became Regional Director in 2006 and
Vice President, Latin America & the Caribbean, SubSaharan Africa and Western Europe in 2008.
Prior to joining IFC, Mr. Tanoh worked for a consulting
firm in Paris and with the banking commission
of the West African Central Bank in Abidjan, Cote
d’Ivoire. An Ivorian national, he graduated from Ecole
Superieure de Commerce d’Abidjan, is a certified public
accountant in France and holds a Masters in Business
Administration from the Harvard Business School.
He joined the Board of Ecobank Nigeria in November
2012.
23
Mme. Eveline Tall
Edouard Virgile
Non-Executive Director
Dossou-Yovo
Independent Director
Born 1958, Eveline Tall is an Executive Director
in Ecobank Transnational Incorporated, its Chief
Operating Officer and a Deputy Chief Executive Officer.
She started her banking career in 1981 in Citibank
in Dakar. She left Citibank to join Ecobank Mali as
Deputy Managing Director in 1998, and was made
Managing Director in 2000. She was later transferred
to Ecobank Senegal as Managing Director in 2000. She
was appointed Regional Head of the UEMOA Zone in
October 2005. Eveline Tall holds a Bachelor’s degree
in English (Dakar) and a Diploma in International
Trade, Distribution and Marketing from the Ecole
d’administration et de Direction des Affaires, Paris.
She was appointed to the Board of the Bank in March
2010.
Born 1949, Mr. Dossou-Yovo has a Masters Degree
and Ph.D in Commercial Law. He worked with Banque
Paribas Group France for 10years as Investment
Advisor and Legal Counsel. Since leaving Banque
Paribas Group, from 1990 to date, Mr. Dossou-Yovo
has been operating his own Company, Cabinet
International Ingenierie Financiere Assitance Juridique
et Gestion (CIIFAG).
Mr. Dossou-Yovo is bringing his wealth of experience
in international banking as well as the Law to Ecobank
Nigeria as a non-Executive Director and Independent
Director. He is from the Republic of Benin and joined
the Board in April 2009.
24
Mr. Orikolade Karim
Mr. Olufemi Ayeni
Non – Executive
Director
Independent Director
Born 1968, Mr. Karim is the Group Managing Director/
CEO Shoreline Energy International Ltd (a leading
energy and infrastructure company focused on
Africa). His current portfolio consists of business in the
construction, commodity trading, agro-allied products,
oil and gas, engineering and power sectors.
In addition to his role at Shoreline Energy International,
Mr. Karim is the current Chairman of Costain West
Africa Plc and serves as director in seven (7)
subsidiary companies including Schlumberger Testing
& Production Services Nigeria Limited, Trans Amadi
Facilities Ltd and Chairman, Nigerian Ropes Plc.
Mr. Karim is a Young Global Leader 2008 Award
Honoree and also a pioneer and active member of the
Global Agenda Council on Emerging Multinationals of
the World Economic Forum. He had delivered opinion
and position papers at international conferences,
investment forum, business schools and universities.
He has attended many courses both locally and
international including management and leadership
courses at the prestigious Harvard Business School and
John F. Kennedy School of Government.
Mr. Karim is a member of the Institute of Directors,
Nigeria (IoD), Lagos Polo Club, Ikoyi Club 1938 and
Lagos Motor Boat Club. He was appointed a director in
Ecobank Nigeria in June 2010
Born 1955, Mr. Ayeni is a graduate of the University
of Lagos with an MBA specializing in Finance and
Entrepreneurial Management from Wharton Business
School and University of Pennsylvania USA. He is the
founder and Chairman/CEO of Ultima Limited (1989 to
date), a pioneer company in telecommunication and
media industry.
Mr. Ayeni has over 30 years experience in the
entertainment, media, telecommunications and
banking industries. He has international banking
experience from National Bank Philadelphia in
United States of America (USA) and locally with the
International Merchant Bank.
His company Ultima Limited is behind the successful
weekly, interactive TV Reality show “Who Wants To Be
A Millionaire?” and “Project Fame West Africa” among
others.
Mr. Ayeni, a distinguished entrepreneur joined the
Board in January 2012.
25
Foluke Aboderin
Mrs. Funmi Oyetunji
Executive Director
Non-Executive Director
Born in 1961, Ms. Aboderin is a Chartered Accountant
and also holds a first degree in Economics. She joined
Ecobank in March 2007.
A seasoned banker, her banking experience spans 27
years, managing the relationships of Multinationals
and Top-tier Local Corporates operating in key sectors
of the economy. She has attended several Citibank
courses locally and abroad and she performed a
short-time assignment in Citibank South Africa. Before
working with Citibank, she started her banking career
at First City Merchant Bank (now First City Monument
Bank) where she worked in the Corporate Finance and
Corporate Banking Departments of the bank for over
ten years.
Foluke Aboderin is the Group Head of Corporate
Banking, and was appointed an Executive Director in
September 2007.
Born in 1957, Mrs. Oyetunji graduated from
the University Of Nigeria in 1977 with a BSc in
accountancy. She is a Fellow of both the Institute of
Chartered Accountants of Nigeria and The Association
Of Certified Accountants in the UK.
She brings over 30years of experience in audit,
financial services, banking and asset management.
From 1981 to 1992, she built a career in audit and
business/financial advisory with the firms of Coopers
and Lybrand and Z.O Ososanya & Co in Nigeria and
KPMG in the UK. Her banking experience spanned
ten years from 1992 to 2002 when she held senior
management positions including head of Foreign
Operations and Bank Treasurer at First Bank of Nigeria.
Since 2002, she has been the Managing Director of
Abitos Financial Services Limited, a financial advisory
and real estate investment company.
Mrs. Oyetunji has taught Accounting and Finance on
the executive programs of the Lagos Business School
and IBFC Agusto. She has also taught Asset & Liability
Management for the Money Market Association of
Nigeria. She is a member of the International Women
Society
Mrs. Oyetunji joined the Board in April 2012.
26
Mr. Kingsley
Aigbokhaevbo
Oladele Alabi
Executive Director
Executive Director
Born 1965, Mr. Aigbokhaevbo has over 18 years
of banking experience with over 8 years at senior
management positions. His banking career has
included key positions in Internal Control and Audit,
Corporate Banking, and Marketing. He spent the
bulk of his career in Zenith Bank Plc where he rose
to become the General Manager/Group Zonal Head,
Victoria Island Annex Zone, with responsibilities
for driving business initiatives. He left Zenith Bank
Plc. in 2007 to join UBA Plc where he held several
positions namely Regional Head, Island Bank and
Ikeja Bank. He holds a B.Sc( Honors) degree in Agric
Economics, with a second class upper division, from
University of Ibadan, Oyo State. He is a Fellow of the
Institute of Chartered Accountants of Nigeria, ICAN
and is responsible for overseeing the Bank’s Domestic
Banking operations in the Lagos and West Region. He
was initially appointed Executive Director in June 2011
and re-appointed in April 2012.
Born 1967, ‘Dele Alabi has over 18 years of diversified
experience in banking, having worked in various areas
including Treasury and Financial Institutions, Strategy
and Business Development, Corporate Banking and
Risk Management groups in the Ecobank Group.
He also has country supervision and management
experience, as the pioneer Managing Director for
Ecobank Uganda since inception in January 2009 till
August 2011. He joined Ecobank Nigeria in 1993 and
rose to senior management position in the affiliate
before his transfer to the group in January 2007.
He was a member of the team involved in growing
Ecobank franchise in the East and Southern African
region between 2007 and 2008. Prior to joining
Ecobank Nigeria PLC in 1993, he worked for 5 years
in Arthur Andersen & Co (now KPMG Professional
Services), an international audit and consulting firm.
Dele holds a First Class Honours degree in Accounting
from the University of Ife and an MBA (specializing in
Finance) from the University of Lagos. He is an award
winning Chartered Stockbroker (Associate), Chartered
Accountant (Fellow), Chartered Banker (Fellow)
and Chartered Tax practitioner (Associate), He was
appointed an Executive Director in August 2011, with
responsibility for the Finance and Risk functions in the
bank.
27
Mr. Shehu Jafiya
Mr. Henry Ajagbawa
Executive Director
Executive Director
Born 1962, Mr. Jafiya has over 26 years of banking
experience with over 10 years at senior management
level. He spent his career in different Banks which
include United Bank for Africa (UBA), Equitorial
Trust Bank Limited, City Express Bank, Oceanic Bank
International and Bank PHB among others. He holds a
B.Sc( Honors) degree in Business Administration with
a Second Class Upper Division, and M.Sc in Business
Administration. He was appointed Executive Director in
April 2012 responsible for the Bank’s Northern Region.
Born 1963, Mr. Ajagbawa has over 21 years of
banking experience with over 11 years in various
senior management positions. His banking career has
included key positions in Audit, Corporate Banking,
and Marketing. He worked with Standard Trust
Bank Plc, Continental Trust Bank Limited, Equitorial
Trust Bank Limited and United Bank for Africa (UBA)
and more recently as Executive Director in Oceanic
Bank International Limited before its merger with
Ecobank Nigeria. He holds a B.Sc( Honors) degree
in Economics, with a Second Class Upper Division,
from University of Lagos and M.Sc. Economics from
the same Institution. He is a Fellow of the Institute of
Chartered Accountants of Nigeria, ICAN
Prior to his appointment as Executive Director in April
2012 responsible for the Bank’s South South/South
East Region, he was Group Head, Public Corporates
with the Ecobank Group.
28
Jibril Aku
Managing Director
Born 1960, Mr. Jibril Aku has over 33 years
banking experience with 19 years spent in senior
management. His banking career has included key
positions in Capital Markets, Foreign Exchange and
Treasury Management. Mr Aku at one time served
two terms as director of Nigeria Inter-bank Settlement
Systems (NIBSS) and various subsidiaries of Afribank
Group including Afribank International Limited
(Merchant Bankers) and ANP International Finance,
Dublin, Ireland. Mr . Aku is a former President of the
Money Market Association of Nigeria (MMAN) and
has serves as Chairman of the NIBOR Committee
of the Association. Prior to joining Ecobank in
2006, he worked for Nigeria International Bank
Limited (Citibank) and later with Afribank Nigeria
Plc as Executive Director in charge of Operations &
Information Technology. He holds a Bachelors and
Masters Degrees in Business Administration.
Jibril Aku was Executive Director responsible for the
Bank’s Treasury & Financial Institutions Group amongst
others from April 2006–March 2010. He was elevated
to the position of the Managing Director of the Bank in
March 2010.
29
Corporate governance report
Corporate governance report
• Approval of insider-related transactions/credits
Commitment to Corporate Governance
• Review of remedial accounts/past due obligations/
classified accounts
Ecobank remains committed to ensuring international
best practice in terms of Corporate Governance.
1. Board composition
As at December 31, 2012, the Board comprised fifteen
(15) Directors: nine (9) non-executive and six (6)
executive directors.
During the year the Bank was in compliance with
the CBN Code of Corporate Governance regarding the
appointment of a minimum of two (2) independent
non-executive directors. The independent directors
are Mr. Edouard Dossou-Yovo and Mr. Olufemi Ayeni.
• Approval of accounts to be written-off and any other
related matters
• Approval of exceptions to the credit policy
• Review of periodic reports and assessment of portfolio performance
Committee Composition:
Mr. Olufemi Ayeni
-
Chairman
Mr. Kola Karim
All the Bank’s Directors have varied experience and
backgrounds and are well equipped to handle the
responsibilities of the Board.
Mrs. Funmi Oyetunji
2. Role of the board
Fundamental to the guiding principles of Ecobank is
that all power belongs to the shareholders.
Mr. Jibril Aku
The role of the Board is well documented in the
Ecobank Group Corporate Governance Charter which
is revised from time to time based on the evolving
nature of the responsibilities of the Board.
ii. Board Governance Committee
Responsibilities
• Compliance with Governance Code
The Board receives continuous training on corporate
governance and relevant areas of the banking.
Directors attended training on the following during the
financial year
• Continuous Education on Corporate Governance
• Internal Control Oversight & Monitoring
• FITC Improving Board Audit Committee’s Effectiveness
• Credit Risk Management Workshop
• Enterprise Risk Management Workshop
The Board’s oversight of the operations and activities
of the Bank is also carried out transparently.
3. Compliance with the Central Bank of Nigeria (CBN)
Code of Corporate Governance
The Bank rendered monthly returns to the CBN on
the status of its compliance with the CBN Code of
Corporate Governance. The Bank is in compliance with
the terms of the Code.
4. Board committees
During the 2012 financial year, the Board delegated
some of its responsibilities to the following
Committees:
i.Board Credit Committee
Responsibilities
• Approval of credits outside management’s approval
limit
Ms. Foluke Aboderin
• Corporate governance issues and assessment/evaluation of the Board
• Approval of contractors and major contracts
• Human Resources matters, relating to employment,
termination of employment and review of performance appraisal of Assistant General Managers and
above, staff salary changes and loans, and consideration of appointment of directors and their emoluments.
-
Chairman
Mme. Eveline Tall
Dr. (Mrs.) Nadu Denloye - Resigned in October 2012
iii. Board Risk Committee
Responsibilities
• Review and recommend changes to the Board as
needed to ensure that the Bank has in place at all
times a Risk Management Policy
• Approve and recommend risk tolerance levels, limits
and metrics.
• Review on an annual basis a risk assessment prepared by management that identifies and evaluate
all material risks.
30
Corporate governance report (Cont’d)
• Provide oversight to ensure that the risk management monitoring and reporting functions in the
Bank are independent of business line or risk-taking
processes.
• Discuss and evaluate the Bank’s risk exposures in
light of current market conditions, established risk
limits, operating performance and other relevant
factors.
• Review the report that monitors compliance with risk
parameters established by regulation or Bank policy
and measures the adequacy of risk monitoring, testing and governance.
• Inform the Board of the status of risk exposures and
risk management processes in the Bank.
• Oversee the Bank’s risk framework and controls, and
monitor the activities of the management level risk
committees.
• Periodically review and approve proposals regarding financial, investment, credit and operating risk
management strategies and key decisions of the
management level risk committee.
Dr. (Mrs.) Nadu Denloye -
Chairman up to October 2012
Mrs. Funmi Oyetunji
-
Chairman effective December 2012
Mr. Olufemi Ayeni
Mr. Jibril Aku
Mr. Oladele Alabi
iv. Board Audit & Compliance Committee
Responsibilities
• Review and assessment of all internal and external
audit reports. Review and monitoring of internal
control and ensuring effectiveness of controls
• Review of frauds and forgeries
• Review of the Bank’s compliance requirements
• Liaising with external and internal auditors and
management
• Ensuring compliance with all applicable laws and
regulations, as well as operating standards
• Review of the Bank’s financial performance
• Review of scope and planning of audits
• Review of audited accounts and management
Control Reports
• Review of capital expenditure and operating
expenses
-
Chairman
Mr. Kola Karim
5. Frequency of meetings
Meetings of the Board and its Committees are usually
held quarterly, but may be convened at any time
whenever the need arises.
The Board and its Committees met as follows:
Board/Committees Meetings
No. of Meetings
Board of Directors
Board Credit
Board Risk
Board Governance
Board Audit & Compliance
During the year under review, management
was supported by the following Management
Committees
i) Executive Management Committee chaired by
the Managing Director
ii) Human Resources Committee, chaired by an
Executive Director
iii)Assets and Liabilities Committee, chaired by the
Managing Director
iv)Disciplinary Committee, chaired by an Executive
Director
v) Criticised Asset Committee
vi)Information Technology Steering Committee,
chaired by an Executive Director
8
7
5
4
4
31
6. Attendance at board and committee meetings
The Board
The Board of Directors convened eight (8) times during the year
S/N Directors
1.
2.
3.
4.
5.
6.
7.
8.
9
10
11.
12.
13.
14.
15.
16.
17.
The Olor’ogun S. F. Kuku, OFR
Alhaji M. Anache
Dr. (Mrs.) Nadu Denloye
Chief W. Belonwu
Mr. Kola Karim
Mr. Femi Ayeni *
Mrs. Funmi Oyetunji *
Mr. Arnold Ekpe *
Mr. Thiery Tanoh
Mme. Eveline Tall
Mr. Jibril Aku
Ms. Foluke Aboderin
Mr. Oladele Alabi
Mr. Kingsley Aigbokhaevbo
Mr. Henry Ajagbawa *
Mr. Shehu Jafiya *
Attended
Percentage
8
8
7
5
7
7
6
4
5
2
8
8
8
6
5
4
100%
100%
100%
63%
88%
88%
85%
80%
100%
0%
100%
100%
100%
100%
100%
100%
80%
Total No. Attended
Percentage
4
3
1
3
2
100%
75%
50%
100%
100%
Total No. Attended
Percentage
7
5
4
6
1
5
5
100%
72%
57%
100%
100%
72%
72%
* Mr. Femi Ayeni was appointed in January 2012
* Mrs. Funmi Oyetunji was appointed in April 2012
* Mr. Henry Ajagbawa was appointed in April 2012
* Mr. Shehu Jafiya was appointed in April 2012
* Mr. Kingsley Aigbokhaevbo was re-appointed in April 2012
* Mr. Thierry Tanoh was appointed in October 2012
* Dr. (Mrs.) Nadu Denloye retired in October 2012
* Mr. Arnold Ekpe retired in October 2012
Board Governance Committee
The Committee convened four (4) times during the year.
S/N Directors
1.
2.
3.
4.
5.
Mme. Eveline Tall
Dr. Nadu Denloye
Mr. Arnold Ekpe
Board Credit Committee
S/N Directors
1.
2.
3.
4.
5.
6.
7.
Mr. Olufemi Ayeni
Mr. Kola Karim
Mr. Edouard Dossou-Yovo *
Mme. Eveline Tall *
Mr. Jibril Aku
Ms. Foluke Aboderin
* Mr. Edouard Dossou-Yovo – member from April 2012 and ceased to be a member in December 2012
* Mrs. Funmi Oyetunji – member from June 2012
* Mme. Eveline Tall – member from April 2012 and ceased to be a member in June 2012
32
Board Audit & Compliance Committee
S/N Directors
1.
2.
3.
4.
5.
Total No. Attended
Percentage
4
2
3
3
2
100%
50%
75%
75%
100%
Total No. Attended
Percentage
4
4
2
3
5
100%
80%
100%
75%
100%
Mr. Kola Karim
* Mrs. Funmi Oyetunji – member from June 2012
Board Risk Committee
The Committee convened four (4) times during the year
S/N Directors
1.
2.
3.
4.
5.
Dr. (Mrs.) Nadu Denloye *
Mr. Olufemi Ayeni *
Mr. Jibril Aku
Mr. Oladele Alabi
* Dr. (Mrs.) Nadu Denloye – member from May 2009 and ceased to be a member in October 2012
* Mr. Olufemi Ayeni – member from March 2012
* Mrs. Funmi Oyetunji – member from October 2012
7. Related party transactions
The Bank in the ordinary course of business entered
into contracts with a company related to one of the
directors. The contracts were done on arms-length
basis and have been duly performed.
handling of issues reported. All stakeholders are
enjoined to utilize the Line. The e-mail address is
[email protected]. Toll free hotlines:
07030000026, 0700000027, 08088118888,
08088228888
These are as follows:
10. Customer compliants
The Board and its Committees met as follows:
The Bank entered into Computer and ATM supply
contracts with Computer Warehouse Group, (a
company in which Chief Belonwu is the Chairman),
Resources, Trade and Technologies for the Supply
of Chubb Safes (the Company is related to Mr. Jibril
Aku), Telnet/Softworks – for maintenance of 6 ATMs
(the Company is related to Dr. Denloye, now a former
director).
Number
Amount refunded (N’millions)
8. Shareholder participation
The Bank is conscious of, and promotes shareholder
rights. It continues to take necessary steps to ensure
same. The benefits from contributions, advice and the
wise counsel of shareholder members of the Statutory
Audit Committee remain useful.
We were unable to resolve some of these complaints
as they were received towards the ending of the year
and are currently under Investigations.
9. Whistle-blowing
In line with our commitment to instill best corporate
governance practices in the institution and in
compliance with regulatory requirements, all stake
holders are invited to report any concern about a
threatened/suspected or actual breach through an
independent Whistle-Blowing process. The Bank
currently subscribes to the KPMG Ethics Line, an
independent Whistle-Blowing procedure which
ensures anonymity of the whistle-blower and effective
Complaints
473
Resolved
406
Unresolved
67
-
311
-
The unresolved complaints relates to unauthorized
deductions, excess charges, interest and COT contested
by the customers.
Good Corporate Governance is fundamental to the
long term success of any institution. This remains the
bedrock of the operations of the Bank and its Board.
March 2013
33
Board Appraisal Report
8 May 2013
The Chairman
Board of Directors
Plot 21, Ahmadu Bello Way
Victoria Island
Lagos, Nigeria
Dear Sir
Report to the Directors of Ecobank Nigeria
Limited on the outcome of the Board
Performance Assessment
PricewaterhouseCoopers was engaged to carry
out an assessment of the Board of Directors of Eco
bank Nigeria Limited (“Ecobank”) as required by
Section 5-4.6 of the Central Bank of Nigeria’s Code
of Corporate Governance for Banks in Nigeria (“the
Code”). The Code requires that the review should cover
all aspects of the Board’s structure and composition,
responsibilities, processes and relationships, as well
as individual members’ competencies and respective
roles on the Board’s performance. The review was
conducted for the period ended 31 December 2012.
The Board is responsible for the preparation
and presentation of information relevant to its
performance. Our responsibility is to reach a conclusion
on the Board’s performance based on work carried
out within the scope of our engagement as contained
in our letter of engagement. In carrying out the
evaluation, we have relied on representations made
by members of the Board and management and on
the documents provided for our review.
Yours faithfully
For: PricewaterhouseCoopers Limited
Dr Andrew Nevin
Director
The Board has complied to a large extent with the
directives of the Codes. Areas of compliance include
the structure and composition of the Board and Board
Committees, the skills, gender and age diversity on
the Board and the commitment of Board members
as evidenced by the level of attendance at Board and
Committee meetings. Other areas of strength include
the quality of experience of Board members, regular
management reporting to the Board, effectiveness of
the Company Secretariat and the existence of a welldeveloped induction programme for newly appointed
Board Members.
We have also identified areas for improvement during
the course of our review, some of which include
the need for more direct involvement of the NonExecutive Directors in strategy formulation and regular
enhancement of the Bank’s succession planning policy
which would ensure effective implementation and
adherence. Other findings and recommendations are
contained in our full report to the Board.
We also assessed the performance of the individual
Directors on the Board for the year under review. This
assessment was based on their individual competence,
level of attendance to Board and Board Committee
meetings, contribution and participation at these
meetings and relationship with other Board members.
Each individual Director’s Assessment report was
prepared and made available to them respectively
while a consolidated report of the performance of all
Directors was also submitted to the Chairman of the
Board.
34
Statement of Directors’ Responsibility
The Companies and Allied Matters Act and the Banks
and other Financial Institutions Act, requires Directors
to prepare financial statements for each financial year
which give a true and fair view of the state of financial
affairs of the Bank at the end of the year and of its
profit or loss.
The responsibilities include ensuring that the Bank:
a. keeps proper accounting records that disclose, with
reasonable accuracy, the financial position of the
Bank and comply with the requirements of the
Companies and Allied Matters Act and the Banks
and other Financial Institutions Act;
b. establishes adequate internal controls to safeguard
its assets and to prevent and detect fraud and
other irregularities; and
c. prepares its financial statements using suitable
accounting policies supported by reasonable and
prudent judgments and estimates, and are consistently applied.
The Directors accept responsibility for the annual
financial statements, which have been prepared
using appropriate accounting policies supported by
reasonable and prudent judgements and estimates, in
conformity with the:
Jibril Aku
Managing Director
-- International Financial Reporting Standards;
-- Prudential guidelines for licensed banks;
-- Relevant circulars issued by the Central Bank of
Nigeria;
-- Requirements of Banks and other Financial Institutions Act; and
-- Requirements of the Companies and Allied Matters
Act
The Directors are of the opinion that the financial
statements give a true and fair view of the state of the
financial affairs of the Bank and of its profit and cash
flows. The Directors further accept responsibility for the
maintenance of accounting records that may be relied
upon in the preparation of financial statements, as
well as adequate systems of internal financial control.
Nothing has come to the attention of the Directors to
indicate that the Bank will not remain a going concern
for at least twelve months from the date of this
statement.
The Olor’ogun (Dr.)
Sonny Kuku, OFR
Chairman
35
Report of the independent auditors to the members of
Report on the Financial Statements
includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by Directors,
as at 31 December 2012, 31 December 2011 and 1 January 2011
statements.
statement for the years ended 31 December 2012 and 31 December
explanatory information set out on pages 36 to 105.
Directors’ Responsibility for the Financial Statements
The Directors are responsible for the preparation and fair presentation
Allied Matters Act CAP C20 LFN 2004, the Banks and other Financial
Institutions Act CAP B3 LFN 2004, the Financial Reporting Council
of Nigeria Act No 6, 2011, the International Financial Reporting
Standards, and for such internal control as the Directors determine
are free from material misstatement, whether due to fraud or error.
and appropriate to provide a basis for our audit opinion.
Opinion
December 2012 and 31 December 2011 and 1 January, 2011 and
31 December 2012 and 31 December 2011 in accordance with the
Companies and Allied Matters Act CAP C20 LFN 2004, the Financial
Reporting Council of Nigeria Act No 6, 2011 and the International
Financial Reporting Standards.
Auditors’ Responsibility
Other reporting responsibilities
In accordance with circular BSD/1/2004 issued by the Central Bank of
Nigeria, details of insider-related credits are as disclosed in note 38.
statements based on our audit. We conducted our audit in accordance
with International Standards on Auditing. Those standards require
that we comply with ethical requirements and plan and perform the
During the year the bank contravene certain sections of BOFIA
and CBN circulars/guidelines, the details of the contravention and
statements are free from material misstatement.
statements.
An audit involves performing procedures to obtain audit evidence
procedures selected depend on the auditors’ judgment, including
statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal controls relevant to the
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control. An audit also
Akintola Williams Deloitte
Chartered Accountants
Lagos, Nigeria
22 April, 2013
FRC number: FRC/2013/ICAN/000000000830
36
Statement of Comprehensive Income
For the year 31 December 2012
Note
(All amounts in millions of naira unless otherwise stated)
31 December
2012
31 December
2011
Interest income
Interest expense
Net interest income
3
4
118,492
(45,110)
73,382
43,656
(21,527)
22,129
Impairment charge for credit losses
Net interest income after impairment charge for credit losses
5
(12,342)
61,040
15,260
37,389
Net fee and commission income
Net gains from financial instruments at fair value
Other operating income
Employee benefit expense
General and administrative expense
Depreciation and amortisation
Other operating expenses
6
7
8
9
10
11
12
29,059
1,015
8,410
(46,957)
(22,610)
(9,286)
(15,444)
16,390
2,270
5,455
(16,970)
(12,533)
(3,571)
(10,407)
Profit before tax
Income tax
13
5,227
2,578
18,023
1,321
7,805
19,344
10,578
(5,597)
18,383
13,747
7,805
19,344
18,383
13,747
18,383
13,747
42.23k
69.29k
Profit for the year
Other comprehensive income:
Revaluation of financial assets
14
Total comprehensive income for the year
Profit attributable to:
Owners of the parent
Total comprehensive income attributable to:
Owners of the parent
Earnings per share for profit attributable to owners of the parent
Basic/Diluted
The notes on pages 41 to 103 form an integral part of these financial statements.
15
37
As at 31 December 2012
(All amounts in millions of Naira unless otherwise
stated)
Assets
Cash and balances with Central Bank
Loans and advances to banks
Loans and advances to customers
Financial assets held for trading
Investment securities:
-Available-for-sale investments
-Loans and receivables
Pledged assets
Non-current assets held for sale
Property, plant and equipment
Intangible assets
Deferred tax asset
Other assets
Note
31 December 2012
31 December 2011
1 January 2011
16
17
18
19
112,323
120,078
546,873
23,394
86,919
116,597
410,150
32,812
19,437
100,514
225,369
6,821
20
21
22
23
24
25
26
27
228,576
78,116
109,334
2,744
59,387
103
6,005
38,382
249,272
74,159
18,600
67,131
820
4,709
23,889
26,036
3,949
17,487
19,440
155
2,729
22,041
1,325,315
1,085,058
443,978
21,489
1,043,213
58,883
1,279
1,581
45,242
10,116
890,425
64,409
1,502
1,290
1,548
40,406
710
342,379
3,776
502
18
329
30,717
1,171,687
1,009,696
378,431
Total assets
Liabilities
Deposits from banks
Deposits from customers
Borrowings
Retirement benefit obligations
Provisions
Current income tax liability
Other liabilities
28
29
30
31
32
13
33
Total liabilities
Equity
Share capital
Share premium
Retained earnings
Other reserves
34
35
Total equity
Total equity and liabilities
9,241
115,961
(19,704)
48,130
13,960
84,799
(64,532)
41,135
6,940
54,119
(11,188)
15,676
153,628
75,362
65,547
1,325,315
1,085,058
443,978
The notes on pages 41 to 103 form an integral part of these financial statements.
These financial statements were approved by the Board of Directors and authorized for issue on 15 March, 2013 and signed on its behalf by :
The Olor’ogun (Dr) Sonny F. Kuku, OFR Jibril Aku
Dele Alabi
ChairmanManaging DirectorExecutive Director
FRC/2013/WACP/00000001824FRC/2013/CIBN/00000001879FRC/2013/ICAN/00000001767
38
Statement of Changes In Equity
For the year 31 December 2012
Balance at 1 January 2011
Attributable to equity holders of the parent
Retained
Statutory
SMIEIS
Capital
earnings
reserve
reserve
reserve AFS reserve
Share capital
Share premium
Regulatory
reserve
Total
N’Million
N’Million
N’Million
N’Million
N’Million
N’Million
N’Million
N’Million
N’Million
6,940
54,119
(11,188)
6,135
1,150
7,218
1,173
-
65,547
-
-
19,344
(12,255)
-
-
-
-
12,255
19,344
-
Profit
Transfer to regulatory risk reserves
Revaluation of equity financial assets,
net of tax
-
-
-
-
-
-
Total comprehensive income
-
-
7,089
-
-
-
(5,597)
12,255
7,020
-
30,680
-
(60,433)
-
-
18,800
-
-
-
13,960
84,799
(64,532)
6,135
1,150
26,018
-
-
7,805
-
-
-
-
Issue of new shares
Acquired from business combination
At 31 December 2011
Profit
Revaluation of AFS net of tax (i)
Total comprehensive income
Issue of new shares (ii)
Adjustment to regulatory reserves
Inflow receivable from AMCON (iii)
Reduction of shares (iv)(iii)
Prior year IFRS adjustment
At 31 December 2012
3,337
(8,056)
-
63,407
(32,245)
-
7,805
(15,218)
11,372
40,301
568
-
-
9,241
115,961
(19,704)
6,135
1,150
(5,597)
(4,424)
(5,597)
12,255
10,578
13,747
56,500
(60,433)
75,362
7,805
10,578
(18,800)
-
10,578
-
15,218
-
18,383
47,944
11,372
568
7,218
6,154
27,473
153,628
i) This shows the effects from the fair value measurement of equity instruments elected to be presented in other comprehensive income on initial recognition.
ii) A total of 6,674,441,964 shares were issued to Ecobank Transnational Incorporated (ETI) during the year at N10 per share and nominal value of N0.5.
iii) N11.3 billion represents inflow receivable from AMCON in respect of the negative networth acquired from former Oceanic Bank in 2011.
iv) A total of 16,111,111,111 shares, worth N8.05 billion and share premium of N32.2 billion were reduced and transferred to retained earnings during the year.
39
Statement of prudential adjusments
For the year ended 31 December 2012
31 December
2012
31 December
2011
5,328
17,044
4,179
13,440
22,372
17,619
5,866
5,709
5,486
19,848
4,073
12,274
25,334
16,347
Long term investments
Other assets
12,255
5,866
12,255
5,709
Excess of Prudential guidelines over IFRS
- Loans
- Investments
2,963
12,255
12,255
Excess of Prudential impairment over IFRS impairment transferred to regulatory reserve
15,218
12,255
Impairment - IFRS
Loans:
- Collective
- Specific
Investment securities - LR
Other assets
Impairment - Prudential Guidelines
Loans:
- General
- Specific
40
Statement of Cash Flows
Note
Cash flows from operating activities
Profit before tax
Adjustments:
Loan impairment charges
Depreciation
Amortisation of intangible assets
Impairment losses on loans and receivables
Impairment losses on other assets
Profit from sale of property and equipment
Bad loans written off
Property, plant and equipment scrapped
Amount written-off other assets
Interest paid on long term borrowings
Net interest income
Dividend income
Retirement benefit obligation - charge for the period
Cash reserve balance
Interest received
Interest paid
Investment securities – AFS
Investment securities – loans and receivables
Pledged assets
Other assets
Deposit from banks
Deposit from customers
Provisions
Other liabilities
Value added tax paid
income tax paid
5
11
11
5
5
8
18
4
8
9
16
3
4
18
19
21
22
28
29
Net cash from operating activities
Cash flows from investing activities
Proceeds from sale of AFS financial assets
Dividend income
Purchase of software
Purchase of property and equipment
Proceeds from sale of property and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Borrowings
Interest paid on long term borrowings
20
24
30
4
Net cash (used in)/generated from financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of year
Net cash from operating activities
Net cash from investing activities
Net cash from financing activities
December
2012
December
2011
5,227
18,023
10,973
8,556
730
707
287
(105)
(6,218)
54
(131)
1,333
(73,382)
(240)
1,892
(16,537)
3,377
194
(34)
846
(67)
(82,814)
62
(219)
852
(22,129)
(130)
1,408
(50,317)
(97,168)
(33,850)
118,492
(45,110)
(141,477)
9,418
20,696
(3,957)
(90,734)
(2,744)
(14,650)
11,373
152,788
(1,502)
(11)
5,925
(551)
-
(55,288)
43,656
(21,527)
(156,423)
(25,991)
(4,423)
(70,210)
(1,113)
6,533
9,406
548,046
1,000
1,272
10,427
(531)
(642)
(66,211)
187,024
20,695
240
(13)
(5,085)
4,324
(223,236)
130
(859)
(51,522)
459
20,161
(275,028)
47,944
(5,526)
(1,333)
56,500
60,633
(852)
41,085
116,281
145,826
(66,211)
20,161
41,085
117,549
187,024
(275,028)
116,281
Cash and cash equivalents at end of year
16
140,861
145,826
Cash and cash equivalents comprise:
Cash and balances with central bank
16
17
20,783
120,078
29,229
116,597
140,861
145,826
41
1. General Information
Ecobank Nigeria (hereinafter referred to as “the Bank”) was
incorporated as a public limited liability company on 7 October
1986, and was granted banking licence on 24 April 1989. The Bank
was listed on the Nigerian Stock Exchange by introduction between
24 April 2006 and remained listed until 31 December 2011. On
30 December 2011, by a Federal High Court Sanction of a Scheme
of Arrangement, Ecobank Transnational Incorporated (ETI), Lome,
incorporated in the Republic of Togo which prior to that date held
85.1% equity shares in the Bank, became beneficial owner of 100%
shareholding in the Bank. The Bank is now a fully owned subsidiary
of ETI and has been re-registered as a private limited liability
company at the Corporate Affairs Commission, Abuja.
ETI acquired 100% interest in Oceanic Bank Group on 28 October
2011 through the issue of shares to AMCON and the shareholders
of Oceanic Bank. Oceanic Bank was delisted on the Nigerian Stock
Exchange (NSE) on that date and became a Limited liability entity.
As a result of common control in both Ecobank Nigeria and Oceanic
Bank Limited, ETI decided to merge the two operations. The effective
date of business combination is 30 December 2011.
The address of its registered office is as follows:
Plot 21, Ahmadu Bello Way,
P.O. Box 72688,
Victoria Island
Lagos, Nigeria
The principal activity of the Bank is commercial banking which
includes domestic and corporate banking services. The Bank operates
under a commercial banking license with National Banking status in
line with the Central Bank of Nigeria’s present Banking model.
The financial statements for the year ended 31 December 2012 have
been approved for issue by the Board of Directors on 15 March 2013.
Neither the entity’s owners nor others have the power to amend the
financial statements after issue.
2. Summary of significant accounting policies
The principal accounting policies adopted in the preparation of these
financial statements are set out below. These policies have been
consistently applied to all the years presented, unless otherwise
stated.
An explanation of how the transition to International Financial
Reporting Standards (IFRS) has affected the reported financial
position, financial performance and cash flows of the Bank is
provided in note 45. This note includes reconciliations of equity and
the statement of comprehensive income for the comparative periods
reported under Nigerian GAAP (Previous GAAP) to those reported for
these periods under IFRS.
2.1 Basis of presentation
The Bank’s financial statements for the year 2012 have been
prepared in accordance with the International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards
Board (IASB). Additional information required by national regulations
is included where appropriate. These are the first stand-alone
financial statements of the Bank prepared in accordance with IFRS
and IFRS 1 (First-time Adoption of IFRS) has been applied.
The Bank has elected not to consolidate its holdings in 3 of its
subsidiaries, in accordance with the guidance under IAS 27 ‘Separate
Financial Statements’, paragraph 10 and with the full consent of its
parent company, Ecobank Transnational Incorporated (ETI).
Ecobank Transnational Incorporated (ETI) is incorporated in Lome,
Togo, and it prepares consolidated IFRS financial statements for public
use. These consolidated financial statements are available at ETI’s
registered office address:
Transnational Incorporated
2365, Boulevard du Mono
B.P. 3261, Lome - Togo.
The investments and Ecobank Nigeria Limited’s holdings in them are
listed thus:
Oceanic Pension Fund Custodian Nigeria
Oceanic Bureau de Change Nigeria
Oceanic Securities Nigeria
% Interest
100
100
100
These investments have been accounted for at fair value on the
acquisition date.
The financial statements comprise the income statement and
statement of comprehensive income showing as two statements, the
statement of financial position, the statement of changes in equity,
the statement of cash flow and the notes.
The financial statements have been prepared under the historical cost
convention, except for the fair value for financial instruments.
The Bank classifies its expenses by the nature of expense method.
The Bank’s financial statements are presented in Nigerian Naira,
which is the Bank’s presentation currency. The figures shown in the
financial statements are stated in millions of Naira (N’Millions). The
disclosures on risks from financial instruments are presented in the
financial risk management report contained in Note 41.”
The preparation of these financial statements in conformity with
IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgment in the process of
applying the Bank’s accounting policies. Changes in assumptions may
have a significant impact on the financial statements in the period
the assumptions changed. Management believes that the underlying
assumptions are appropriate and that the Bank’s financial statements
therefore present the financial position and results fairly. The areas
involving a higher degree of judgment or complexity, or areas where
assumptions and estimates are significant to the financial statements
are disclosed in Note 44.
2.1.1 Changes in accounting policies and disclosures
(a)New and amended standards adopted by the Bank
The Bank has adopted IFRS for the first time in 2012 refer to IFRS 1
(note 46) for further details.
42
New standards and interpretations that are not yet effective and
have not been early adopte.
A number of new standards and amendments to standards and
interpretations are effective for annual periods beginning after 1
January 2012, and have not been applied in preparing these financial
statements. None of these is expected to have a significant effect on
the financial statements of the Bank, except the following set out
below:
2.2 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of the Bank are measured
using the currency of the primary economic environment in which
the Bank operates (“the functional currency”).
Amendment to IAS 1, ‘Presentation of Financial Statements’
regarding other comprehensive income. The main change resulting
from these amendments is a requirement for entities to group
items presented in ‘other comprehensive income’ (OCI) on the
basis of whether they are potentially reclassifiable to profit or loss
subsequently (reclassification adjustments). The amendments do
not address which items are presented in OCI. The application of
this amendment will mainly impact the presentation of the primary
statements.
(b) Transactions and balances
“Foreign currency transactions that are denominated, or that require
settlement, in a foreign currency are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions.
IFRS 13, ‘Fair value measurement’, aims to improve consistency and
reduce complexity by providing a precise definition of fair value and a
single source of fair value measurement and disclosure requirements
for use across IFRSs. The requirements, which are largely aligned
between IFRSs and US GAAP, do not extend the use of fair value
accounting but provide guidance on how it should be applied where
its use is already required or permitted by other standards within
IFRSs or US GAAP. The application of IFRS 13 may enhance fair value
disclosures in a lot of circumstances.
IAS 19, ‘Employee benefits’, was amended in June 2012. The impact
on the Bank will be as follows: to immediately recognise all past
service costs; and to replace interest cost and expected return on plan
assets with a net interest amount that is calculated by applying the
discount rate to the net defined benefit liability (asset). The directors
are yet to assess the full impact of the amendments.
IFRS 9, ‘Financial instruments’, addresses the classification,
measurement and recognition of financial assets and financial
liabilities. Issued in November 2009 and October 2011, it replaces the
parts of IAS 39 that relate to the classification and measurement of
financial instruments. IFRS 9 requires financial assets to be classified
into two measurement categories: those measured as at fair value
and those measured at amortised cost. The determination is made at
initial recognition. The classification depends on the entity’s business
model for managing its financial instruments and the contractual
cash flow characteristics of the instrument. For financial liabilities, the
standard retains most of the IAS 39 requirements. The main change
is that, in cases where the fair value option is taken for financial
liabilities, the part of a fair value change due to an entity’s own
credit risk is recorded in other comprehensive income rather than the
income statement, unless this creates an accounting mismatch. The
directors are yet to assess IFRS 9’s full impact and intend to adopt
IFRS 9 no later than the accounting period beginning on or after
1 January 2015. The directors will also consider the impact of the
remaining phases of IFRS 9 when completed by the IASB.
There are no other IFRSs or IFRIC interpretations that are not yet
effective that would be expected to have a material impact on the
Bank.
The financial statements are presented in Naira and figures are stated
in millions of Naira, which is the Bank’s presentation currency.
Monetary items denominated in foreign currency are translated with
the closing rate as at the reporting date. If several exchange rates
are available, the forward rate is used at which the future cash flows
represented by the transaction or balance could have been settled
if those cash flows had occurred. Non-monetary items measured at
historical cost denominated in a foreign currency are translated with
the exchange rate as at the date of initial recognition; non-monetary
items in a foreign currency that are measured at fair value are
translated using the exchange rates at the date when the fair value
was determined.
Foreign exchange gains and losses resulting from the settlement of
foreign currency transactions and from the translation at year-end
exchange rates of monetary assets and liabilities denominated in
foreign currencies are recognised in profit or loss.
Changes in the fair value of monetary assets denominated in foreign
currency classified as available-for-sale are analysed between
translation differences resulting from changes in the amortised cost
of the security and other changes in the carrying amount of the
security. Translation differences related to changes in the amortised
cost are recognised in profit or loss, and other changes in the carrying
amount, are recognised in other comprehensive income.
Translation differences on non-monetary financial instruments, such
as equities held at fair value through profit or loss, are reported
as part of the fair value gain or loss. Translation differences on
non-monetary financial instruments, such as equities classified
as available-for-sale financial assets, are included in other
comprehensive income.
2.3 Sale and repurchase agreements
Securities sold subject to repurchase agreements (‘repos’) are
reclassified in the financial statements as pledged assets when the
transferee has the right by contract or custom to sell or repledge the
collateral; the counterparty liability is included in deposits from banks
or deposits from customers, as appropriate. Securities purchased
under agreements to resell (‘reverse repos’) are recorded as loans
and advances to other banks or customers, as appropriate. The
difference between sale and repurchase price is treated as interest
and accrued over the life of the agreements using the effective
interest method. Securities lent to counterparties are also retained in
the financial statements.
2.4 Financial assets and liabilities
All financial assets and liabilities – which include derivative financial
43
instruments – have to be recognized in the statement of financial
position and measured in accordance with their assigned category.
-- the financial assets consist of debt host and an embedded derivatives that must be separated. “
A) Initial recognition and measurement
The Bank uses trade date accounting for regular way contracts when
recording financial asset transactions. Financial instruments at fair
value through profit or loss are initially recognised at fair value while
transaction costs, which are directly attributable to the acquisition
or issue of the financial instruments, are recognised immediately
through profit or loss. Financial instruments that are not carried at fair
value through profit or loss are initially measured at fair value plus
transaction costs that are directly attributable to the acquisition or
issue of the financial instruments.
Financial instruments included in this category are recognised initially
at fair value; transaction costs are taken directly to profit or loss.
Gains and losses arising from changes in fair value are included
directly in profit or loss and are reported as ‘Net gains/(losses) on
financial instruments classified as held for trading’. Interest income
and expense and dividend income and expenses on financial assets
held for trading are included in ‘Net interest income’ or ‘Dividend
income’, respectively. Fair value changes relating to financial assets
designated at fair value through profit or loss are recognised in ‘Net
gains on financial instruments designated at fair value through profit
or loss’.
The Bank does not currently apply hedge accounting.
B) Subsequent measurement
Subsequent to initial measurement, financial instruments are
measured either at fair value or amortised cost depending on their
classification.
C) Classification and related measurement
Management determines the classification of its financial instruments
at initial recognition. Reclassification of financial assets is permitted
in certain instances as discussed below.
2.4.1 Financial assets
The Bank classifies its financial assets in the following categories:
financial assets at fair value through profit or loss, loans and
receivables, held-to-maturity and available-for-sale financial assets.
The directors determine the classification of its financial assets at
initial recognition. The Bank uses trade date accounting for regular
way contracts when recording financial asset transactions.
(a) Financial assets at fair value through profit or loss
This category comprises two sub-categories: financial assets classified
as held for trading, and financial assets designated by the Bank as at
fair value through profit or loss upon initial recognition.
A financial asset is classified as held for trading if it is acquired or
incurred principally for the purpose of selling or repurchasing it
in the near term or if it is part of a portfolio of identified financial
instruments that are managed together and for which there is
evidence of a recent actual pattern of short-term profit-taking.
Derivatives are also categorised as held for trading unless they are
designated and effective as hedging instruments. All derivatives are
carried as assets when fair value is positive and as liabilities when
fair value is negative.
The Bank designates certain financial assets upon initial recognition
as at fair value through profit or loss (fair value option). This
designation cannot subsequently be changed and can only be
applied when the following conditions are met:
-- the application of the fair value option reduces or eliminates an
accounting mismatch that would otherwise arise or
-- the financial assets are part of a portfolio of financial instruments
which is risk managed and reported to senior management on a
fair value basis or
b) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed
or determinable payments that are not quoted in an active market,
other than:
a.those that the Bank intends to sell immediately or in the short
term, which are classified as held for trading, and those that the
entity upon initial recognition designates as at fair value through
profit or loss;
b.those that the Bank upon initial recognition designates as available
for sale; or
c.those for which the holder may not recover substantially all of its
initial investment, other than because of credit deterioration.
Loans and receivables are initially recognized at fair value – which
is the cash consideration to originate or purchase the loan including
any transaction costs – and measured subsequently at amortized cost
using the effective interest rate method. Loans and receivables are
reported in the statement of financial position as loans and advances
to banks or customers or as investment securities. Interest on loans
is included in the income statement and is reported as ‘Interest
income’. In the case of impairment, the impairment loss is reported
as a deduction from the carrying value of the loan and recognised in
the income statement as ‘Loan impairment charges’.
c) Held-to maturity financial assets
Held-to-maturity investments are non-derivative financial assets
with fixed or determinable payments and fixed maturities that the
Bank’s management has the positive intention and ability to hold to
maturity, other than:
(i) those that the Bank upon initial recognition designates as at fair
value through profit or loss;
(ii) those that the Bank designates as available for sale; and
(ii) those that meet the definition of loans and receivables.
Held-to-maturity investments are initially recognized at fair value
including direct and incremental transaction costs and measured
subsequently at amortized cost, using the effective interest method.
d) Available-for-sale
Available-for-sale investments are financial assets that are intended
to be held for an indefinite period of time, which may be sold
in response to needs for liquidity or changes in interest rates,
44
exchange rates or equity prices or that are not classified as loans and
receivables, held-to-maturity investments or financial assets at fair
value through profit or loss.
Available-for-sale financial assets are initially recognized at fair value,
which is the cash consideration including any transaction costs, and
measured subsequently at fair value with gains and losses being
recognized in the statement of comprehensive income, except for
impairment losses and foreign exchange gains and losses, until the
financial asset is derecognized. If an available-for-sale financial asset
is determined to be impaired, the cumulative gain or loss previously
recognized in the statement of comprehensive income is recognized
in the income statement. However, interest is calculated using the
effective interest method, and foreign currency gains and losses on
monetary assets classified as available for sale are recognized in
profit and loss.
2.4.2 Financial liabilities
The Bank’s holding in financial liabilities represents mainly deposits
from banks and customers and other liabilities. Such financial
liabilities are initially recognised at fair value and subsequently
measured at amortised cost
a) Financial liabilities at fair value through profit or loss
This category comprises two sub-categories: financial liabilities
classified as held for trading and financial liabilities designated by the
Bank as at fair value through profit or loss upon initial recognition.
A financial liability is classified as held for trading if it is acquired
or incurred principally for the purpose of selling or repurchasing it
in the near term or if it is part of a portfolio of identified financial
instruments that are managed together and for which there is
evidence of a recent actual pattern of short-term profit-taking.
Derivatives are also categorized as held for trading unless they are
designated and effective as hedging instruments. Financial liabilities
held for trading also include obligations to deliver financial assets
borrowed by a short seller. Those financial instruments are recognized
in the statement of financial position as ‘Financial liabilities held for
trading’.”
Gains and losses arising from changes in fair value of financial
liabilities classified held for trading are included in the income
statement and are reported as ‘Net gains/(losses) on financial
instruments classified as held for trading’. Interest expenses on
financial liabilities held for trading are included in ‘Net interest
income’.
Financial liabilities for which the fair value option is applied are
recognized in the statement of financial position as ‘Financial
liabilities designated at fair value’. Fair value changes relating to
financial liabilities designated at fair value through profit or loss are
recognized in ‘Net gains on financial instruments designated at fair
value through profit or loss’.”
b)Financial liabilities measured at amortized cost
Financial liabilities that are not classified as at fair value through
profit or loss are measured at amortised cost using the effective
interest method. Interest expense is included in ‘Interest expense’ in
the Statement of comprehensive income.
2.4.3 Determination of Fair Value
“At initial recognition, the best evidence of the fair value of a
financial instrument is the transaction price (i.e. the fair value of
the consideration paid or received), unless the fair value of that
instrument is evidenced by comparison with other observable current
market transactions in the same instrument, without modification or
repackaging, or based on valuation techniques such as discounted
cash flow models and option pricing models whose variables include
only data from observable markets.
Subsequent to initial recognition, for financial instruments traded in
active markets, the determination of fair values of financial assets
and financial liabilities is based on quoted market prices or dealer
price quotations. This includes listed equity securities and quoted
debt instruments on major exchanges and broker quotes.
A financial instrument is regarded as quoted in an active market if
quoted prices are readily and regularly available from an exchange,
dealer, broker, industry group, pricing service or regulatory agency,
and those prices represent actual and regularly occurring market
transactions on an arm’s length basis. If the above criteria are not
met, the market is regarded as being inactive. Indications that a
market is inactive are when there is a wide bid-offer spread or
significant increase in the bid-offer spread or there are few recent
transactions.
For all other financial instruments, fair value is determined using
valuation techniques. In these techniques, fair values are estimated
from observable data in respect of similar financial instruments, using
models to estimate the present value of expected future cash flows
or other valuation techniques, using inputs existing at the reporting
dates.
The Bank uses widely recognised valuation models for determining
fair values of non-standardised financial instruments of lower
complexity, such as options or interest rate and currency swaps. For
these financial instruments, inputs into models are generally marketobservable.
For more complex instruments, the Bank uses internally developed
models, which are usually based on valuation methods and
techniques generally recognised as standard within the industry.
Valuation models are used primarily to value derivatives transacted in
the over-the-counter market, unlisted debt securities (including those
with embedded derivatives) and other debt instruments for which
markets were or have become illiquid. Some of the inputs to these
models may not be market observable and are therefore estimated
based on assumptions.
The Bank uses its own credit risk spreads in determining the current
value for its derivative liabilities and all other liabilities for which it
has elected the fair value option. When the Bank’s credit spreads
widen, the Bank recognises a gain on these liabilities because the
value of the liabilities has decreased. When the Bank’s credit spreads
narrow, the Bank recognises a loss on these liabilities because the
value of the liabilities has increased.
The output of a model is always an estimate or approximation of
a value that cannot be determined with certainty, and valuation
techniques employed may not fully reflect all factors relevant to the
45
positions the Group holds. Valuations may therefore be adjusted,
where appropriate, to allow for additional factors including model
risks, liquidity risk and counterparty credit risk. Based on the
established fair value model governance policies, and related controls
and procedures
2.4.4 Derecognition
Financial assets are derecognised when the contractual rights to
receive the cash flows from these assets have ceased to exist or
the assets have been transferred and substantially all the risks and
rewards of ownership of the assets are also transferred (that is, if
substantially all the risks and rewards have not been transferred, the
Bank tests control to ensure that continuing involvement on the basis
of any retained powers of control does not prevent derecognition).
Financial liabilities are derecognised when they have been redeemed
or otherwise extinguished.
Collateral (shares and bonds) furnished by the Bank under
standard repurchase agreements and securities lending and
borrowing transactions is not derecognised because the Bank
retains substantially all the risks and rewards on the basis of the
predetermined repurchase price, and the criteria for derecognition
are therefore not met.
Financial assets that are transferred to a third party but do not qualify
for derecognition are presented in the Statement of financial position
as ‘Assets pledged as collateral’.
2.4.5 Reclassification of financial assets
“The Bank may choose to reclassify a non-derivative financial asset
held for trading out of the held-for-trading category if the financial
asset is no longer held for the purpose of selling it in the near-term.
Financial assets other than loans and receivables are permitted
to be reclassified out of the held for trading category only in rare
circumstances arising from a single event that is unusual and highly
unlikely to recur in the near-term. In addition, the Bank may choose
to reclassify financial assets that would meet the definition of loans
and receivables out of the held-for-trading or available-for-sale
categories if the Bank has the intention and ability to hold these
financial assets for the foreseeable future or until maturity at the
date of reclassification.
Reclassifications are made at fair value as of the reclassification date.
Fair value becomes the new cost or amortized cost as applicable,
and no reversals of fair value gains or losses recorded before
reclassification date are subsequently made. Effective interest rates
for financial assets reclassified to loans and receivables and heldto-maturity categories are determined at the reclassification date.
Further increases in estimates of cash flows adjust effective interest
rates prospectively.
On reclassification of a financial asset out of the ‘at fair value through
profit or loss’ category, all embedded derivatives are re-assessed
and, if necessary, separately accounted for.”
46
2.4.6 Classes of financial instrument
The Bank classifies the financial instruments into classes that reflect the nature of information and take into account the characteristics of those
financial instruments. The classification made can be seen in the table below:
Category (as defined by IAS 39)
Financial assets at Fair value through profit and loss
Class (as determined by the Bank)
Subclasses
Debt securities
Equity securities
Derivatives non-hedging
Financial assets designated at fair value through profit or loss
Debt securities
Equity securities
Loans to individual (retail)
Overdraft
Credit cards
Term loans
Mortgages
Investment securities - debt instruments
Loans and advances to corporate
SMEs
Listed
Unlisted
Listed
Unlisted
Listed
Available-for-sale financial assets
Investment securities - equity instruments
Listed
Unlisted
Financial liabilities at amortised cost
Deposits – banks
Loans and receivables
Held-to-maturity investments
Off-balance sheet financial instruments
Loan commitments
Guarantees, acceptance and other financial facilities
Retail
Large corporate customers
SMEs
47
2.5 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported
in the statement of financial position when there is a legally
enforceable right to offset the recognized amounts and there is an
intention to settle on a net basis or realize the asset and settle the
liability simultaneously.
2.6 Interest income and expense
Interest income and expense for all interest-bearing financial
instruments are recognized within ‘interest income’ and ‘interest
expense’ in the income statement using the effective interest
method.
The effective interest method is a method of calculating the
amortized cost of a financial asset or a financial liability and of
allocating the interest income or interest expense over the relevant
period. The effective interest rate is the rate that exactly discounts
estimated future cash payments or receipts through the expected
life of the financial instrument or, when appropriate, a shorter period
to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Bank estimates cash
flows considering all contractual terms of the financial instrument
(for example, prepayment options) but does not consider future
credit losses. The calculation includes all fees and points paid or
received between parties to the contract that are an integral part of
the effective interest rate, transaction costs and all other premiums
or discounts.
Once a financial asset or a Bank of similar financial assets has been
written down as a result of an impairment loss, interest income is
recognized using the rate of interest used to discount the future cash
flows for the purpose of measuring the impairment loss.
2.7 Fees and commissions income
Fees and commissions are generally recognized on an accrual basis
when the service has been provided. Loan commitment fees for
loans that are likely to be drawn down are deferred (together with
related direct costs) and recognized as an adjustment to the effective
interest rate on the loan. Loan syndication fees are recognized as
revenue when the syndication has been completed and the Bank
has retained no part of the loan package for itself or has retained
a part at the same effective interest rate as the other participants.
Commission and fees arising from negotiating, or participating
in the negotiation of, a transaction for a third party – such as the
arrangement of the acquisition of shares or other securities, or the
purchase or sale of businesses – are recognized on completion of the
underlying transaction. Portfolio and other management advisory
and service fees are recognized based on the applicable service
contracts, usually on a time-apportionate basis. Asset management
fees related to investment funds are recognized ratably over the
period in which the service is provided. The same principle is applied
for wealth management, financial planning and custody services
that are continuously provided over an extended period of time.
Performance-linked fees or fee components are recognized when the
performance criteria are fulfilled.
2.8 Income from bonds or guarantees and letters of credit
Income from bonds or guarantees and letters of credit are recognised
on a straight line basis over the life of the bond or guarantee.
2.9 Dividend income
Dividends are recognized in the income statement in ‘Dividend
income’ when the Bank’s right to receive payment is established.
2.10 Impairment of financial assets
a)Assets carried at amortized cost
The Bank assesses at each reporting date whether there is objective
evidence that a financial asset is impaired. A financial asset or a
group of financial assets is impaired and impairment losses are
incurred only if there is objective evidence of impairment as a result
of one or more events that occurred after the initial recognition of the
asset (a ‘loss event’) and that loss event (or events) has an impact
on the estimated future cash flows of the financial asset or group of
financial assets that can be reliably estimated.
The criteria that the Bank uses to determine that there is objective
evidence of an impairment loss include:
a. Delinquency in contractual payments of principal and interest;
b. Cash flow difficulties experienced by the borrower (for example,
equity ratio, net income percentage of sales);
c. Breach of loan covenants and conditions;
d. Initiation of bankruptcy proceedings;
e. Deterioration of borrower’s competitive position
f. Deterioration in the value of collateral;
g. Downgrading below investment grade level;
h. Significant financial difficulty of the issuer or obligor;
i. A breach of contract, such as a default or delinquency in interest
or principal payments;
j. The lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession
that the lender would not otherwise consider;
k. It becomes probable that the borrower will enter bankruptcy or
other financial reorganization;
l. The disappearance of an active market for that financial asset
because of financial difficulties; or
m.Observable data indicating that there is a measurable decrease in
the estimated future cash flows from a portfolio of financial assets
since the initial recognition of those assets, although the decrease
cannot yet be identified with the individual financial assets in the
portfolio including:
(i) adverse changes in the payment status of borrowers in the
portfolio; and
(ii) national or local economic conditions that correlate with
defaults on the assets in the portfolio.
48
The estimated period between a loss occurring and its identification
is determined by the directors for each identified portfolio. In general,
the periods used vary between 3 and 12 months; in exceptional
cases, longer periods are warranted.
The Bank first assesses whether objective evidence of impairment
exists individually for financial assets that are individually significant,
and individually or collectively for financial assets that are not
individually significant. If the Bank determines that no objective
evidence of impairment exists for an individually assessed financial
asset, whether significant or not, it includes the asset in a group of
financial assets with similar credit risk characteristics and collectively
assesses them for impairment. Assets that are individually assessed
for impairment and for which an impairment loss is or continues
to be recognized are not included in a collective assessment of
impairment.
The amount of the loss is measured as the difference between
the asset’s carrying amount and the present value of estimated
future cash flows (excluding future credit losses that have not been
incurred) discounted at the financial asset’s original effective interest
rate. The carrying amount of the asset is reduced through the use
of an allowance account and the amount of the loss is recognized
in the income statement. If a loan or held-to-maturity investment
has a variable interest rate, the discount rate for measuring any
impairment loss is the current effective interest rate determined
under the contract. As a practical expedient, the Bank may measure
impairment on the basis of an instrument’s fair value using an
observable market price.
The calculation of the present value of the estimated cash flows of a
collateralized financial asset reflects the cash flows that may result
from foreclosure less costs for obtaining and selling the collateral,
whether or not the foreclosure is probable.
For the purposes of a collective evaluation of impairment, financial
assets are grouped on the basis of similar credit risk characteristics
(i.e., on the basis of the Bank’s grading process that considers
industry, collateral type, past-due status and other relevant factors).
Those characteristics are relevant to the estimation of future cash
flows for Banks of such assets by being indicative of the debtors’
ability to pay all amounts due according to the contractual terms of
the assets being evaluated.
Future cash flows in a group of financial assets that are collectively
evaluated for impairment are estimated on the basis of the
contractual cash flows of the assets in the Bank and historical loss
experience for assets with credit risk characteristics similar to those in
the Bank. Historical loss experience is adjusted on the basis of current
observable data to reflect the effects of current conditions that did
not affect the period on which the historical loss experience is based
and to remove the effects of conditions in the historical period that
do not currently exist.
Estimates of changes in future cash flows for group of assets should
reflect and be directionally consistent with changes in related
observable data from period to period (for example, changes in
unemployment rates, property prices, payment status, or other
factors indicative of changes in the probability of losses in the Bank
and their magnitude). The methodology and assumptions used for
estimating future cash flows are reviewed regularly by the Bank
to reduce any differences between loss estimates and actual loss
experience.
“When a loan is uncollectible, it is written off against the related
allowance for loan impairment. Such loans are written off after all
the necessary procedures have been completed and the amount
of the loss has been determined. Impairment charges relating
to loans and advances to banks and customers are classified in
loan impairment charges whilst impairment charges relating to
investment securities (held to maturity and loans and receivables
categories) are classified in ‘Net gains/(losses) on investment
securities’.
If, in a subsequent period, the amount of the impairment loss
decreases and the decrease can be related objectively to an
event occurring after the impairment was recognized (such as an
improvement in the debtor’s credit rating), the previously recognized
impairment loss is reversed by adjusting the allowance account. The
amount of the reversal is recognized in profit or loss.
b) Assets classified as available-for-sale
The Bank assesses at each date of the statement of financial position
whether there is objective evidence that a financial asset or a group
of financial assets is impaired. In the case of equity investments
classified as available-for-sale, a significant or prolonged decline in
the fair value of the security below its cost is objective evidence of
impairment resulting in the recognition of an impairment loss. If
any such evidence exists for available-for-sale financial assets, the
cumulative loss – measured as the difference between the acquisition
cost and the current fair value, less any impairment loss on that
financial asset previously recognized in profit or loss – is removed
from equity and recognized in the income statement. Impairment
losses recognized in the income statement on equity instruments
are not reversed through the income statement. If, in a subsequent
period, the fair value of a debt instrument classified as available-forsale increases and the increase can be objectively related to an event
occurring after the impairment loss was recognized in profit or loss,
the impairment loss is reversed through profit or loss.
c) Renegotiated loans
Loans that are either subject to collective impairment assessment or
individually significant and whose terms have been renegotiated are
no longer considered to be past due but are treated as new loans.
In subsequent years, the asset is considered to be past due and
disclosed only if renegotiated again.
2.11 Impairment of non-financial assets
Assets that have an indefinite useful life such as goodwill or
intangible assets not ready to use, are not subject to amortisation
and are tested annually for impairment. Assets that are subject
to amortisation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units). Nonfinancial assets other than goodwill that suffered an impairment are
49
reviewed for possible reversal of the impairment at each reporting
date.
Impairment losses recognised in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no
longer exists. An impairment loss is reversed if there has been a
change in the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised. An impairment loss in respect
of goodwill is not reversed.
2.12 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at
call with banks and other short-term highly liquid investments with
original maturities of three months or less.
2.13 Leases
Leases are divided into finance leases and operating leases.
a. The Bank is the lessee
The leases entered into by the Bank are primarily operating leases.
The total payments made under operating leases are charged to
other operating expenses in the income statement on a straight-line
basis over the period of the lease.
When an operating lease is terminated before the lease period
has expired, any payment required to be made to the lessor by
way of penalty is recognized as an expense in the period in which
termination takes place.
b. The Bank is the lessor
When assets are held subject to a finance lease, the present value
of the lease payments is recognized as a receivable. The difference
between the gross receivable and the present value of the
receivable is recognized as unearned finance income. Lease income
is recognized over the term of the lease using the net investment
method (before tax), which reflects a constant periodic rate of return.
c. Fees paid in connection with arranging leases
The Bank makes payments to agents for services in connection with
negotiating lease contracts with the Bank’s lessees. For operating
leases, the letting fees are capitalized within the carrying amount of
the related investment property, and depreciated over the life of the
lease.
2.14 Property and equipment
Land and buildings comprise mainly branches and offices. All property
and equipment used by the parent or its subsidiaries is stated at
historical cost less depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Subsequent expenditures are included in the asset’s carrying amount
or are recognized as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item
will flow to the Bank and the cost of the item can be measured
reliably. The carrying amount of the replaced part is derecognized. All
other repair and maintenance costs are charged to other operating
expenses during the financial period in which they are incurred.
Land is not depreciated. Depreciation on other assets is calculated
using the straight-line method to allocate their cost to their residual
values over their estimated useful lives, as follows:
Buildings
50 years
Leasehold improvements
Furniture and Fittings
5 years
Motor vehicles
4 years
Machinery and equipment
5 years
Computer hardware
3 years
The assets’ residual values and useful lives are reviewed, and
adjusted if appropriate, at each date of the statement of financial
position. Assets are subject to review for impairment whenever
events or changes in circumstances indicate that the carrying amount
may not be recoverable. An asset’s carrying amount is written down
immediately to its recoverable amount if the asset’s carrying amount
is greater than its estimated recoverable amount. The recoverable
amount is the higher of the asset’s fair value less costs to sell and
value in use.
Gains and losses on disposals are determined by comparing proceeds
with carrying amount. These are included in ‘other operating
expenses’ in profit or loss.
2.15 Intangible assets
Computer software licences
Acquired computer software licences are capitalized on the basis of
the costs incurred to acquire and bring to use the specific software.
These costs are amortized on the basis of the expected useful lives.
Software has a maximum expected useful life of 5 years.
Costs associated with developing or maintaining computer software
programs are recognized as an expense incurred. Costs that are
directly associated with the production of identifiable and unique
software products controlled by the Bank are recognised as intangible
assets when the following criteria are met:
-- it is technically feasible to complete the software product so that it
will be available for use;
-- management intends to complete the software product and use or
sell it;
-- there is an ability to use or sell the software product;
-- it can be demonstrated how the software product will generate
probable future economic benefits;
-- adequate technical, financial and other resources to complete the
development and to use or sell the software product are available;
and
-- the expenditure attributable to the software product during its
development can be reliably measured.
Directly attributable costs that are capitalised as part of the software
product include the software development employee costs and an
50
appropriate portion of relevant overheads.
Other development expenditures that do not meet these criteria are
recognised as an expense as incurred. Development costs previously
recognised as an expense are not recognised as an asset in a
subsequent period.
Computer software development costs recognized as assets are
amortized using the straight-line method over their useful lives.
2.16 Income tax
a) Current income tax
The tax expense for the period comprises current and deferred
income tax. Tax is recognised in profit or loss, except to the extent
that it relates to items recognised in other comprehensive income
or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity respectively.
“The current income tax charge is the aggregate of the charge to the
profit and loss account in respect of current income tax, information
technology (IT) tax, education tax and deferred income tax.
Current income tax is the amount of income tax payable on the
taxable profit for the year determined in accordance with the
Companies Income Tax Act (CITA). Education tax is assessed at 2%
of the chargeable profits. Information Technology levy is assessed at
1% of profit before tax. The directors periodically evaluate positions
taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. They establish provisions
where appropriate on the basis of amounts expected to be paid to
the tax authorities.”
Where the Bank has tax losses that can be relieved against a tax
liability for a previous year, it recognizes those losses as an asset,
because the tax relief is recoverable by refund of tax previously paid.
This asset is offset against an existing current tax balance. Where tax
losses can be relieved only by carry-forward against taxable profits of
future periods, a deductible temporary difference arises. Those losses
carried forward are set off against deferred tax liabilities carried in
the statement of financial position. The Bank does not offset income
tax liabilities and current income tax assets.
b) Deferred income tax
Deferred income tax is recognised, using the liability method, on
temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements.
However, deferred tax liabilities are not recognised if they arise
from the initial recognition of goodwill; deferred income tax is not
accounted for if it arises from initial recognition of an asset or liability
in a transaction other than a business combination that at the time
of the transaction affects neither accounting nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that
have been enacted or substantially enacted by the reporting date
and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it
is probable that future taxable profit will be available against which
the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a
legally enforceable right to offset current income tax assets against
current income tax liabilities and when the deferred income taxes
assets and liabilities relate to income taxes levied by the same
taxation authority on either the same entity or different taxable
entities where there is an intention to settle the balances on a net
basis.
2.17 Provisions
Provisions for restructuring costs and legal claims are recognised
when: the Bank has a present legal or constructive obligation as
a result of past events; it is probable that an outflow of resources
will be required to settle the obligation; and the amount has been
reliably estimated. Provisions are not recognised for future operating
losses.
Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures
expected to be required to settle the obligation using a pre-tax rate
that reflects current market assessments of the time value of money
and the risks specific to the obligation. The increase in the provision
due to passage of time is recognised as interest expense.
2.18 Employee benefits
a) Defined contribution scheme
The bank operates a defined contribution pension scheme in line
with the provisions of the Pension Act. A defined contribution plan is
a pension plan under which the bank pays fixed contributions into a
separate entity. The bank has no legal or constructive obligations to
pay further contributions if the fund does not hold sufficient assets
to pay all employees the benefits relating to employee service in
the current and prior periods. For defined contribution plans, the
bank pays contributions to publicly or privately administered pension
insurance plans on a contractual basis. The bank contributes 7.5% of
basic salary, housing and transport allowances, with the employee
contributing a further 7.5%. The bank has no further payment
obligations once the contributions have been paid. The contributions
are recognised as employee benefit expense when they are due.
Prepaid contributions are recognised as an asset to the extent that a
cash refund or a reduction in the future payments is available.
b) Defined benefit scheme
The Bank also operates a defined benefit scheme for employees
who have spent 10 years and above in its employment. A defined
benefit plan is a pension plan that is not a defined contribution plan.
Typically defined benefit plans define an amount of pension benefit
that an employee will receive on retirement, usually dependent on
one or more factors such as age, years of service and compensation.
The liability recognised in the balance sheet in respect of defined
pension plan is the present value of the defined benefit obligation
at the end of the reporting period less the fair value of plan assets,
together with adjustments for unrecognised past-service costs. The
defined benefit obligation is calculated annually by independent
actuaries using the projected unit credit method. The present value
of the defined benefit obligation is determined by discounting the
51
estimated future cash outflows using interest rates of high-quality
government bonds and that have terms to maturity approximating to
the terms of the pension obligation.
Actuarial gains and losses arising from experience adjustments and
changes in actuarial assumptions are charged or credited to income
statement in the period in which they arise. Past-service costs are
recognised immediately in profit or loss, unless the changes to the
pension plan are conditional on the employees remaining in service
for a specified period of time (the vesting period). In this case, the
past-service costs are amortised on a straight-line basis over the
vesting period.
2.19 Borrowings
Borrowings are recognised initially at fair value net of transaction
costs incurred. Borrowings are subsequently stated at amortised cost;
any difference between proceeds net of transaction costs and the
redemption value is recognised in the income statement over the
period of the borrowing using the effective interest method.
Fees paid on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable that
some or all of the facility will be drawn down. In this case, the fee
is deferred until the draw-down occurs. To the extent there is no
evidence that it is probable that some or all of the facility will be
drawn down, the fee is capitalised as a pre-payment for liquidity
services and amortised over the period of the facility to which it
relates.
2.20 Share capital
Share issue costs
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new ordinary shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
2.21 Dividends payable
Dividends on ordinary shares are recognised in equity in the period in
which they are approved by the Bank’s shareholders. Dividends for
the year that are declared after the date of the statement of financial
position are dealt with in the subsequent events note.
2.22 Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker is the person or Bank that
allocates resources to and assesses the performance of the operating
segments of an entity. The Bank has determined the Executive board
as its chief operating decision maker.
All transactions between business segments are conducted on an
arm´s length basis, with intra-segment revenue and costs being
eliminated in head office. Income and expenses directly associated
with each segment are included in determining business segment
performance.
In accordance with IFRS 8, the Bank has the following business
segments: Corporate banking group, Domestic banking group and
Ecobank Capital group.
2.23 Acceptances and letters of credit
Acceptances and letters of credit are accounted for as off-balance
sheet transactions and disclosed as contingent liabilities.
2.24 IFRS 1 – First time adoption
As these financial statements represent the initial presentation of
the results and financial position under IFRS, they were prepared
in accordance with IFRS 1, First Time Adoption of International
Financial Reporting Standards (“IFRS 1”). IFRS 1 requires retrospective
application of all IFRS standards, with certain optional exemptions
and mandatory exceptions, which are described further in this Note.
The accounting policies described in Note 2 have been applied
consistently to all periods presented in our Financial Statements with
the exception of the optional exemptions elected and the mandatory
exceptions required. At 1 January, 2011 (“the Transition Date”), an
opening balance sheet was prepared under IFRS.”
The most significant IFRS impact for the bank resulted from the
implementation of IAS 39, which requires financial assets to be
measured at fair value or at amortized cost (using the effective
interest method) if certain criteria are met. As well as requirement
to measure the impairment of financial assets only in case where
there is objective evidence of impairment as a result of one or more
loss events that occurred after the initial recognition of the asset.
The 2011 Financial Statements were previously prepared in
accordance with the Nigerian SAS. In this Note the transition to IFRS
is explained through the following:
a. First time adoption optional exemptions and mandatory exceptions
to retrospective application of IFRS.
This section describes the standards for which IFRS was not applied
retrospectively as available in IFRS 1.
b. Reconciliations of total equity and comprehensive income from
Nigerian SAS to IFRS.
Quantitative and qualitative explanations are included in this section
to explain the differences between Nigerian SAS and IFRS in total
equity and comprehensive income.
c. Reconciliation of statement of financial position from Nigerian SAS
to IFRS.
This section explains quantitatively and qualitatively the impact and
differences between Nigerian SAS and
d. Additional disclosures
This section contains additional disclosures as at 1 January, 2011
and 31 December, 2011 for items where the most recent Financial
Statements prepared under Nigerian SAS do not provide sufficient
context.
2.25 First time adoption optional exemptions and mandatory
exceptions to retrospective application
As previously noted, IFRS 1 requires retrospective application of all
IFRS standards with certain optional exemptions and mandatory
exceptions. The optional exemptions elected and the mandatory
exceptions to retrospective application of IFRS are described below:
52
1 Optional exemptions
a.Financial instruments
IAS 39, Financial Instruments: Recognition and Measurement (“IAS
39”) sets out the classification and designation requirements for
financial instruments at the date of initial recognition, which is the
date the entity becomes a party to the contractual provisions of the
financial instrument. However, IFRS 1 allows for revised designation
of financial instruments held at the Transition Date as AFS or FVTPL.
The revised designations have been done primarily to reduce
measurement inconsistencies or accounting mismatch.
b. Business combinations
The retrospective application of IFRS 3, Business Combinations (“IFRS
3”), would require the restatement of all business combinations that
occurred prior to the Transition Date. IFRS 1 provides an option not
to apply IFRS 3 retrospectively to acquisitions that occurred before
the Transition Date and we have elected this optional exemption.
Therefore, no adjustments were required to retained earnings or other
balances as a result of the adoption of IFRS 3.
c. Fair value as deemed cost
IFRS 1 provides option to elect to remeasure property, plant and
equipment at fair value at the Transition date and use that fair value
as their deemed cost. The “fair value as deemed cost” exemption may
be applied on an asset-by-asset basis. We had elected to use fair value
as deemed cost for property, plant and equipment.
d. Fair value measurement of financial assets and financial liabilities
at initial recognition.
The current guidance in IAS 39 states the transaction price of a
financial instrument is generally the best evidence of fair value, unless
fair value is evidence by comparison with other observable current
market transactions in the same instrument or based on a valuation
technique whose variables include only data from observable market.
At initial recognition, an entity may recognize as a gain or loss on the
difference between this fair value measurement and the transaction
price (i.e., “day one” gain or loss) only if the measurement of fair value
is based entirely on observable market inputs without modification.
Otherwise, IAS 39 does not allow the recognition of a day one gain
or loss and force initial recognition at the transaction price, which is
considered the best evidence of fair value. Subsequent measurement
and recognition would follow the guidance as defined by IAS 39.
We had remeasured certain AFS securities to fair value as of the
Transition Date and applied this exemption prospectively.
2.26 Mandatory exceptions
a. Estimates
Estimates made in accordance with IFRS at the Transition Date are
consistent with estimates we previously made under Nigerian SAS.
b. De-recognition of financial assets and liabilities exception
Financial assets and liabilities derecognized before 1 January 2011 are
not re-recognized under IFRS.
All other mandatory exceptions in IFRS 1 were not applicable because
there were no significant differences in management’s application of
Nigerian SAS in these areas.
53
3
Interest income
31 December
2012
31 December
2011
N’ Million
N’ Million
Loans and advances:
- To Banks
- To Customers
6,101
6,480
60,622
24,395
51,769
12,781
118,492
43,656
Investment Securities:
Available-for-sale
Interest income earned outside Nigeria amounted to N 883.7 million (2011 : N 1.24 billion)
4
Interest expense
Deposits from banks
Borrowings
5
4,683
2,051
39,094
18,624
1,333
852
45,110
21,527
13,540
(13,984)
Loans and advances to customers (refer note 18.1)
Increase in impairment
Amounts written off in the year as uncollectible
Reversal of impairment
375
465
(2,567)
(1,819)
-
(734)
Advances under finance leases (refer note 18.1)
Investment
707
-
619
(653)
Other assets
287
12,342
846
(15,260)
54
6
31 December
2012
31 December
2011
N’ Million
N’ Million
6,619
4,278
23
1,207
Commissions on Turnover
9,553
3,970
Letters of credit commission
1,677
1,921
Other fees
12,974
5,398
16,774
Credit related fees and commissions
Commission on off-balance sheet transaction
7
Fee and commission income
30,846
Fee and commission expense
(1,787)
29,059
(384)
16,390
Net gains / (losses) from financial instruments at fair value
Net gains / (losses) arising on:
7.1
Financial instruments classified as held for trading:
- Interest rate instruments
- Others
7.2
1,254
-
-
-
1,254
-
Investment securities
Financial assets classified as Available-for-sale
- Allowance for impairment (Note 21)
8
2,270
1,015
2,270
Foreign exchange gains / (losses)
9
(239)
7,772
5,210
Dividend income
240
130
Rental income
293
48
Profit on sale of property, plant and equipment
105
67
8,410
5,455
41,965
14,910
Employee benefits expense
Wages and salaries
Pension costs:
- Defined contribution plans
1,650
538
- Retirement benefit cost - Gratuity (Note 31)
1,892
1,408
- Other employee costs and benefits
1,450
114
46,957
16,970
55
10
11
N’ Million
N’ Million
Information, communication and technology
2,760
2,040
5,282
3,118
Premises expenses
5,446
3,103
Equipment running costs
3,538
1,919
Advertisement and business promotion
1,488
895
Motor vehicle running costs
1,979
496
Business travels
925
629
Office consumables
932
329
Penalties (Note 41)
260
4
22,610
12,533
8,556
3,377
730
194
9,286
3,571
Auditors' remuneration
83
110
Directors' emoluments
125
311
6,540
5,547
Amortisation of intangible assets (Note 25)
Consultancy and advisory expenses
Cash processing costs
13
31 December
2011
Insurance expenses
Depreciation of property and equipment (Note 24)
12
31 December
2012
524
1,164
Banking resolution sinking fund cost
3,306
1,828
4,866
1,447
15,444
10,407
53
323
Taxation
Current taxes on income for the reporting period
Current taxes referring to previous periods
Total current tax
Deferred tax
53
405
728
(2,631)
(2,049)
-
-
Total deferred tax
(2,631)
(2,049)
Income tax expense
(2,578)
(1,321)
Impact of change in tax rate
56
13
Taxation
Reconciliation of effective tax rate
31 Dec 2012
31 Dec 2011
N’ Million
N’ Million
Profit before income tax
5,227
18,023
Income tax using the domestic corporation tax rate at 30%
1,568
5,407
Effect of:
Deferred tax on fixed assets excluding revaluation
(57%)
(2,996)
4%
779
67%
3,507
(1%)
(202)
IT tax
1%
53
2%
323
Change in tax rate
0%
-
1%
151
Collective impairment on loans charged to P & L
Tax loss effect
(60%)
(Over) / under provided in prior years
(3,142)
0%
Total income tax expense in income statement
(15%)
-
(49%)
(2,777)
2%
(2,578)
405
(7%)
(1,321)
The movement in the current income tax liability is as follows:
31 December
2012
31 December
2011
N’ Million
N’ Million
At 1 January
1,548
Tax paid
1,133
-
Prior period over/(under) provision
Income tax charge
At 31 December
Current
Non-current
14
329
-
(642)
(20)
405
53
323
1,581
1,548
53
323
1,528
1,225
1,581
1,548
Income tax effects relating to components of other comprehensive income
31 December 2012
Tax
(expense)
Before tax
/ Benefit
Net of tax
Fair value gains on fair-value-through-other comprehensive
income
Actuarial gains/(losses) on defined benefit plans
Other comprehensive for the year
10,578
-
10,578
-
-
-
10,578
-
10,578
31 December 2011
Tax
(expense)
Before tax
/ Benefit
Net of tax
(5,597)
(5,597)
-
(5,597)
57
15
Earnings per share
Basic/Diluted
Basic/Diluted earnings per share is calculated by dividing the net profit attributable to equity holders of the Company by the weighted average number
of ordinary shares in issue during the year, excluding the average number of ordinary shares purchased by the Company and held as treasury shares.
Profit attributable to equity holders of the Company (N’000)
16
31 December
2012
31 December
2011
N’ Million
N’ Million
7,805,192
19,344,100
Weighted average number of ordinary shares in issue (in '000s)
18,482,530
27,919,199
Basic/Diluted earnings per share (expressed in Kobo per share)
42.23k
69.29k
Cash and balances with central banks
31 December
2012
31 December
2011
31 January
2011
N’ Million
N’ Million
N’ Million
Cash
28,595
21,083
13,688
Balances with central banks other than mandatory reserve deposits
(7,812)
8,146
3,347
20,783
29,229
17,035
91,540
57,690
2,402
112,323
86,919
19,437
Mandatory reserve deposits with central banks
Mandatory reserve deposits are not available for use in the Bank and Bank’s day-to-day operations. The Bank had restricted cash balance of N91.5billion
(N57.7billion: 31 December 2011).
16.1
Cash and cash equivalent
Cash and cash equivalents comprise balances with less than three months’ maturity from the date of acquisition, including cash in hand, deposits held at
call with other banks and other short-term highly liquid investments with original maturities less than three months.
Cash and balances with central banks (Note 16)
Loans and advances to banks (Note 17)
17
31 December
2012
31 December
2011
1 January
2011
N’ Million
N’ Million
N’ Million
20,783
29,229
17,035
120,078
116,597
100,514
140,861
145,826
117,549
Current balances with banks with Nigeria
6,783
5,993
2,163
Current balances with banks outside Nigeria
70,226
49,126
26,590
Placements with local banks and discount houses
36,954
39,604
65,209
6,115
21,874
6,552
120,078
116,597
100,514
Placements with foreign banks and discount houses
58
17
Loans and advances to banks (Cont’d)
Current
Non-current
31 December
2012
31 December
2011
1 January
2011
N’ Million
N’ Million
N’ Million
120,078
116,597
100,514
-
-
120,078
116,597
100,514
Tenor
(days)
Rate
(%)
Amount
N’ Million
8,017
Further breakdown of placements with banks and discount houses for December 2012:
Local Banks
First securities discount house limited
6
11
Associated discount house limited
56
14
7,161
Kakawa discount house limited
68
14
20,214
Sterling Bank PLC
91
18
1,562
36,954
Foreign Banks
Ecobank Uganda
30
5.5
Ecobank Paris
50
0.2
468
9
Ecobank Ghana
90
6.9
5,466
Standard Chartered London
90
0.3
172
6,115
59
18
18.1
Loans and advances to customers comprise:
Gross
amount
Specific
impairment
Collective
impairment
Total
impairment
Carrying
amount
N’ Million
N’ Million
N’ Million
N’ Million
N’ Million
31 December 2012
Specialised loans
170,942
(1,072)
(1,903)
(2,975)
167,967
Overdrafts
153,798
Term loans
232,187
(13,024)
(1,254)
(14,278)
139,520
(2,734)
(2,172)
(4,906)
227,281
Non-specialised loans
Commercial papers ('CP')
2,339
-
-
-
Advances under finance lease
9,979
(213)
-
(213)
9,766
2,339
569,245
(17,043)
(5,329)
(22,372)
546,873
102,684
(818)
(43)
(861)
101,823
Overdrafts
96,311
(11,689)
(1,112)
(12,801)
83,510
Term loans
218,596
(720)
(3,024)
(3,743)
214,853
31 December 2011
Specialised loans
Non-specialised loans
3,093
7,084
(213)
-
427,768
(13,440)
48,448
Overdrafts
Term loans
-
-
3,093
(213)
6,871
(4,179)
(17,618)
410,150
(3,233)
(170)
(3,403)
45,045
111,715
(32,567)
(1,716)
(34,282)
77,433
101,546
(3,492)
(4,586)
(8,078)
93,468
01 January 2011
Specialised loans
Non-specialised loans:
3,424
-
6,212
(213)
271,345
(39,505)
-
-
3,424
(213)
5,999
(6,472)
(45,976)
225,369
31 December
2012
31 December
2011
1 January
2011
N’ Million
N’ Million
N’ Million
Current
358,751
275,732
163,207
Non-current
210,494
152,036
108,138
569,245
427,768
271,345
60
Reconciliation of impairment allowance on loans and advances to
customers:
To customers
Specialised
Non-Specialised
Finance lease
Total
N’million
N’million
N’million
N’million
818
12,480
142
13,440
43
4,064
71
4,178
861
16,544
213
17,618
Specific impairment
211
12,180
-
12,391
Collective impairment
903
246
-
1,148
(6,218)
-
(6,218)
(2,520)
-
(2,567)
Specific impairment
Additional provision
***Loans written off during the year as uncollectible
Amounts recovered during the year
(48)
1,927
20,232
213
22,372
Specific impairment
981
15,921
142
17,044
946
4,311
71
5,328
1,927
20,232
213
22,372
3,233
36,058
213
39,504
171
6,301
-
6,472
3,404
42,359
213
45,976
Balance at 31 December 2012
Specific impairment
Specific impairment
***Loans written off during the year as uncollectible
Amounts recovered during the year
Specific impairment
Balance at 31 December 2011
*** All loans written off during the year were fully provided for.
-
70,260
734
70,994
(12,274)
(805)
(12,425)
(127)
(2,236)
71
(2,293)
(3,069)
(79,746)
-
(82,815)
(1,819)
-
(1,819)
654
861
16,544
213
17,616
818
12,480
142
13,440
43
4,064
71
4,178
861
16,544
213
17,618
61
18.2
Advances under finance lease may be analysed as follows:
31 December
2012
31 December
2011
1 January
2011
N’million
N’million
N’million
Gross investment
- No later than 1 year
2,093
1,253
1,293
10,824
7,392
5,677
12,917
8,645
6,970
(2,937)
(1,561)
9,980
7,084
6,212
142
213
344
71
-
-
213
213
344
-
734
Specific impairment
-
142
-
(142)
Loans written off during the year as uncollectible
-
(734)
- Later than 1 year and no later than 5 years
Unearned future finance income on finance leases
Net investment
(758)
Reconciliation of impairment allowance on advances under finance lease
Opening balance
Specific impairment
-
-
-
142
142
213
71
71
-
213
213
213
Secured against real estate
79,817
71,174
22,856
Secured by shares
20,971
26,268
51,856
Otherwise secured
343,945
285,184
151,087
Unsecured
124,512
45,142
45,546
569,245
427,768
271,345
31 December
2012
31 December
2011
1 January
2011
N’million
N’million
N’million
180
597
427
-
-
-
180
597
427
Specific impairment
Closing balance
18.3
(131)
(131)
Nature of security in respect of loans and advances:
The Bank is not permitted to sell or repledge the collateral in the absence of default by the owner of the collateral.
During the period, the Bank obtained assets by taking possession of collateral held as security:
Nature of assets and carrying amount:
Real estate
Shares
Repossessed properties are sold as soon as practicable, with the proceeds used to reduce the outstanding indebtedness.
62
19
Treasury bills
Federal Government Bonds
31 December
2012
31 December
2011
1 January
2011
N’million
N’million
N’million
15,295
-
8,099
32,812
6,821
23,394
32,812
6,821
63
20
Investments securities: Available-for-sale
31 December
2012
N’million
31 December
2011
N’million
1 January
2011
N’million
Federal Government Bonds - At fair value through other comprehensive income
28,858
100,756
1,956
Treasury bills
25,193
18,511
15,154
Debt securities - at Fair value
- Listed
- Unlisted
Government Guaranteed Bonds - At fair value through other comprehensive income
State Government Bonds
AMCON Bonds
Local Contractor Bonds
8,800
5,017
905
114,575
106,867
3,106
-
31,098
-
Euro Bond (see note (a)
-
2,416
-
Bills discounted (see note (b)
-
-
1,233
208,523
233,567
22,354
Cadbury Nigeria Plc
-
1
3
Guaranty Trust Bank Plc
-
9
11
Nigerian Breweries Plc
-
28
23
Oando Plc
-
4
11
Total Debt securities
Equity securities - at Fair value through Other comprehensive income
- Listed
Daar Communication Plc
-
13
13
Honeywell Flour Mills Plc
-
696
87
- Unlisted
87
87
African Finance Corporation
Express Discount House Limited
9,914
7,507
-
First Securities Discount House Limited
1,848
1,622
1,550
214
251
214
9
48
48
Afreximbank
178
176
169
Central Securities Clearing System
793
529
264
Nigerian Automated Clearing System
211
102
79
76
39
41
345
334
485
-
Accion Microfinance Limited
SME II Partnership
Aureos West Africa Fund
Vintage Press Limited
200
-
2,266
2,130
-
Crusader Nigeria Plc
357
400
400
Flour Mills of Nigeria Plc
242
250
250
Chellarams Plc
893
500
-
Oceanic Bank Bureau de Change
580
580
-
Vivi Oil & Gas Limited
200
200
-
Maitama Amusement Park
193
48
-
Seaward Ventures
101
-
-
33
144
-
1,313
7
34
20,053
15,705
3,682
228,576
249,272
26,036
Oceanic Pension Fund Custodian Limited
Oceanic Securities Int’l Limited
Others
Total equity investments
Total securities Available-for-sale
64
20
Investments securities: Available-for-sale (continued)
31 December
2012
31 December
2011
1 January
2011
N’million
N’million
N’million
Debt securities - at Fair value:
- Listed
- Unlisted
54,052
119,627
17,110
155,965
115,450
5,894
-
751
62
18,387
13,630
2,795
172
174
176
228,576
249,272
26,037
Equity securities - at Fair value:
- Listed
- Unlisted
Equity securities - at Fair value:
- Unlisted
Total securities Available-for-sale
(a)
Euro bond represents the Bank’s investment in the Zambian Eurobond (of $15 million) at coupon rate of 6.25% for the tenor of less than one year.
(b)
Bills discounted represents discounted sovereign debt note issued by the Federal Government of Nigeria to the Bank’s customer in respect of importation
and supply of petroleum products.
(c)
Investments in listed and unlisted debts and equity investments are held at fair value through other comprehensive income. They represent financial
assets that are intended to be held for a period of time. They may be sold in response to needs for liquidity or changes in investment rates.
21
Investments securities: loans & receivables
31 December
2012
31 December
2011
1 January
2011
N’million
N’million
N’million
Debt securities – at amortised cost:
Tinapa Business Resort Limited
Card Technology
ETI Promissory notes (see note (a)
CBN Promissory notes (see note (b)
TBPlC (c)
860
900
400
200
15
190
41,254
43,880
-
8,902
114
3,459
30,150
30,150
-
81,366
75,059
4,049
Allowance for impairment
(3,250)
(900)
(100)
Total securities Loans and receivables
78,116
74,159
3,949
Total investment securities
306,692
323,431
29,986
Current
205,273
233,419
22,316
Non-current
101,419
90,012
7,670
Total investments
306,692
323,431
29,986
(a)
The promissory notes were issued by Ecobank Transnational Incorporated (ETI) for the acquisition of Oceanic Bank’s non-core assets under the Asset sale
and purchase agreement dated 21 December 2011 between ETI and Oceanic Bank. The principal sum shall be payable in five (5) equal installments
commencing from the date the notes was issued.
(b)
Promissory notes were issued by the Central Bank of Nigeria in respect of acquired AIB (Africa International Bank) customers’ deposits verified and paid
during the year.
(c)
Investment of N30.15 billion in Treasury Bond Protected Investment Corporation Limited at coupon rate of 11.48% for the tenure of 15 years.
65
22
Pledged assets
Treasury Bills are pledged to various third parties in respect of the Bank’s ongoing participation in the Nigerian settlement system. Included in Federal
Government Bonds is N 12.5 Billion pledged to BOI (Bank of Industry) as collateral in respect of loans obtained for the purpose of on-lending to
manufacturing customers. These instruments are classified as available for sale.
The nature and carrying amounts of the assets pledged as collaterals are as follows:
23
31 December
2012
31 December
2011
1 January
2011
N’million
N’million
N’million
Investments securities Treasury Bills
38,462
7,158
8,645
Investments securities: Federal Government Bonds
70,872
11,442
8,842
109,334
18,600
17,487
Non-current assets held for sale are Property, plant and equipment, which the Bank had obtained approval from Central Bank of Nigeria (CBN) for
disposal: N2.74 billion.
66
24
Land
Leasehold
Office
Furniture
Computer
Motor
Work in
buildings
equipment
& fittings
equipment
vehicles
progress
Total
N’million
N’million
N’million
N’million
N’million
N’million
N’million
N’million
6,520
40,915
17,310
9,363
10,322
8,659
16,739
109,828
1,134
221
3,107
236
5
5,085
Cost
At 1 January 2012
Additions
-
382
Reclassifications
-
1,773
Write offs
Transferred to non-current assets
held for sale
-
(450)
Disposals
-
(250)
At 31 December 2012
(113)
6,520
(109)
(64)
(6)
(3)
(5)
(25)
(37)
42,257
18,295
(22)
9,493
(12)
13,386
-
(1,594)
-
(762)
8,133
(146)
(2,408)
(2,858)
(1,157)
(2,240)
11,585
109,669
Accumulated depreciation
At 1 January 2012
-
9,206
11,177
6,446
8,843
7,025
-
42,697
Charge for the year
-
2,252
2,748
1,456
1,020
1,080
-
8,556
Write offs
Transferred to non-current assets
held for sale
-
(67)
-
-
-
(114)
Disposals
-
(16)
At 31 December 2012
-
11,261
13,898
7,878
9,830
7,418
6,520
30,996
4,397
1,615
3,556
715
11,588
59,387
At 1 January 2011
3,641
10,679
4,972
692
3,725
3,253
1,771
28,733
Acquired from business
combination
Net book amount at 31 December 2012
(27)
(4)
(20)
(21)
(12)
(687)
(92)
-
(114)
(3)
(765)
(3)
50,282
Cost
2,879
31,973
12,245
8,631
6,477
5,952
13,269
81,426
Additions
-
648
513
76
631
206
42
2,116
Reclassifications
-
(1,971)
129
66
29
-
1,747
Write offs
-
(261)
(440)
(87)
(511)
-
Disposals
-
(153)
(109)
(15)
(29)
At 31 December 2011
(752)
-
(58)
(1,357)
(32)
(1,090)
6,520
40,915
17,310
9,363
10,322
8,659
16,739
109,828
-
1,222
2,577
335
3,108
2,051
-
9,293
1,153
385
535
637
-
3,377
(86)
(511)
-
-
(1,295)
Accumulated depreciation
At 1 January 2011
Charge for the year
-
667
Write offs
-
(259)
(439)
Disposals
-
-
At 31 December 2011
-
9,206
11,177
6,446
8,843
7,025
-
42,697
6,520
31,709
6,133
2,917
1,479
1,634
16,739
67,131
Net book amount at 31
December 2011
(91)
(13)
(27)
(567)
-
(698)
67
25
Intangible assets
Computer software N’million
Cost:
31 December 2012:
At 1 January
Additions
At 31 December
4,600
13
4,613
31 December 2011:
At 1 January
1,210
Acquired on combination
3,390
At 31 December
4,600
1 January 2011:
At 1 January
Additions
At 31 December
1,205
5
1,210
Amortisation
31 December 2012:
At 1 January
Amortisation charged
At 31 December
3,780
730
4,510
31 December 2011:
At 1 January
1,055
Acquired on combination
2,531
At 31 December
194
3,780
1 January 2011:
At 1 January
At 31 December
731
324
1,055
Carrying Amount
31 December 2012
103
31 December 2011
820
1 January 2011
155
The amortisation charge for the period is included in depreciation and amortisation expenses in the Statement of comprehensive income.
68
26
Deferred tax
Deferred income taxes are calculated on all temporary differences under the liability method using a tax rate of 30% (2011: 30%).
Deferred income tax assets are attributable to the following items
31 December 31 December
2012
2011
Deferred tax assets Fixed assets and intangible assets
Opening IFRS adjustment
1 January
2011
N’million
N’million
N’million
7,340
3,374
688
-
-
Allowances for loan losses
(1,335)
-
1,253
1,890
Employee benefits
-
82
151
6,005
4,709
2,729
6,005
4,709
2,729
-
-
-
Deferred tax assets
- Deferred tax asset to be recovered after more than 12 months
- Deferred tax asset to be recovered within 12 months
31 December
2011
Recognised
in P&L
N’million
N’million
Recognised 31 December
in OCI
2012
N’million
N’million
Movements in temporary differences during the year:
Opening balance as at 1 January 2012
Fixed assets and intangible assets
3,374
2,996
-
6,370
Allowances for loan losses
1,253
(3,507)
-
(2,254)
Tax loss carry forward
Employee benefits
-
3,142
-
3,142
82
-
-
82
4,709
2,631
-
7,340
Deferred income tax assets are recognised for tax losses carried forward only to the extent that realisation of the related tax benefit is probable. The Bank
has tax losses of N3.1 billion (2011: N2.8 billion) to carry forward against future taxable income. These tax losses are not expected to expire in line with
local tax law. The benefit of the tax losses has not been recognised in these financial statements due to uncertainty of their recoverability.
69
27
Other assets
2012
2011
1 January
2011
N’million
N’million
N’million
Sundry receivables
32,769
15,795
21,123
Less specific allowances for impairment
(5,865)
(5,709)
(1,023)
26,904
10,086
20,100
Prepayments
9,969
11,778
1,824
Prepaid employee benefit expense
1,509
2,025
117
38,382
23,889
22,041
Financial assets
Non-financial assets
Current
26,904
10,086
20,099
Non-current
11,478
13,803
1,942
38,382
23,889
22,041
5,709
1,023
1,042
-
4,059
-
287
846
104
(131)
(219)
(123)
Reconciliation of impairment account
At start of period
Amounts written off
At end of period
28
Deposits
28.1
Deposits from banks
5,865
5,709
1,023
Money market deposits
Items in course of collection
Other deposits from banks
Deposits from banks under repurchase agreements
Current
Non-current
-
42
-
3,239
1,324
-
18,250
5,750
710
-
3,000
-
21,489
10,116
710
21,489
10,116
710
-
-
-
21,489
10,116
710
Deposits from banks only include financial instruments classified as liabilities at amortised cost. Deposits from banks under repurchase agreements are
secured by treasury bills sold of N Nil (2011: N3 billion).
Further breakdown of other deposits from banks for December 2012:
Tenor(days)
Rate (%)
Ecobank Togo
Name
92
3.5
Amount
601
Fidelity Bank Plc
10
3.5
4,686
First Bank of Nigeria Limited
14
3.0
7,809
Keystone Bank Limited
7
4
1,562
United Bank for Africa Plc
7
3.5
3,592
18,250
70
29
Deposits due to customers are primarily comprised of savings deposits, amounts payable on demand, and
term deposits.
2012
2011
N’million
N’million
N’million
102,314
Demand
386,527
357,986
Savings
157,966
155,383
33,630
Term
270,518
262,240
115,680
Domiciliary
228,202
114,816
90,755
1,043,213
890,425
342,379
1,038,316
888,707
341,836
4,897
1,718
543
1,043,213
890,425
342,379
2012
2011
1 January
2011
Current
Non-current
30
1 January
2011
Borrowings
N’million
N’million
N’million
1,938
2,506
3,098
-
473
678
9,532
9,632
-
-
8,520
-
Bank of Industry (see note (v) below)
43,593
41,278
-
CBN Agric Loan (see note (vi) below)
3,820
2,000
-
58,883
64,409
3,776
Long term borrowing comprise:
International Finance Corporation (see note (i) below)
Deutsche Bank (see note (ii) below)
International Finance Corporation (see note (iii) below)
Merrill Lynch (see note (iv) below)
Current
Non-current
(i)
(ii)
(iii)
(iv)
(v)
(vi)
-
436
1,213
58,883
63,973
2,563
58,883
64,409
3,776
The Bank has not had any defaults of principal, interest or other breaches with respect to their liabilities during the period (2011: nil).
The amount represents outstanding balance ($18.8 million) on dollar denominated on-lending credit obtained from the International Finance Corporation.
The facility will expire on or after 24 November 2015 and has a rate of 2.75% above 3 month’s Libor.
The amount represents outstanding balance ($1.5 million) on dollar denominated loan from Deutsche Bank with Sun and Sand Industries as the
beneficiary. The facility ran for 2 years and expired in June 2012 at 1.8% above Libor payable semi-annually.
The amount represents Tier II capital loan of $61.03 million granted by the International Finance Corporation. The facility has a tenure of 8 years with
moratorium of 5 years and interest rate is 8.5% above 6-month Libor payable semi - annually.
The amount represents outstanding balance on $175 million unsecured credit facility between Oceanic Bank and Merrill Lynch International on 16 May
2007. This is a 5 year loan with maturity date of 18 May 2012 at the rate of 13.4%. The facilty has been fully repaid
This represents CBN intervention funds on-lent to some of the Bank’s customers in the manufacturing sector through Bank of industry (BOI). The fund
is administered at an all-in interest rate of 7% per annum payable on a quarterly basis. The maximum tenor of the facility is 15 years. A total of N12.5
billion bonds held by BOI as collateral. (see note 22).
This represents CBN intervention funds to some of the Banks customers in the Agricultural sector. The fund is administered at a maximum interest rate of
9% per annum. The maximum tenor of the facility 7 years.
71
31
2012
2011
N’million
Defined benefit obligation
1 January
2011
N’million
N’million
1,427
4,389
3,180
Plan assets
(4,389)
(1,678)
(925)
Net liability
-
1,502
502
Reconciliation of Obligation
Balance on 1 January
3,180
1,427
Past service cost
840
Current service cost
596
Interest cost
563
315
Actuarial gains/losses
(42)
(771)
Payments
Liability Acquired
At 31 December
451
(748)
4,389
(59)
1,817
3,180
Reconciliation of Plan Assets
Balance on 1 January
1,678
925
Contributions to the scheme
2,562
741
Benefits paid
Return on assets
At 31 December
149
4,389
(59)
129
(58)
1,678
Income Statement
Past service cost
840
Current service cost
596
Interest cost
31
451
563
315
Return on plan assets
(149)
(129)
42
771
1,892
1,408
Retirement benefit obligations (continued)
Assumptions used:
Rate of return on assets
9%
12%
12%
Rate of increase in remuneration
5%
10%
10%
14%
12%
12%
Discount Rate
Major classes of plan assets
Defined contribution scheme
The Bank and its employees make a joint contribution of 15% of total basic salary, housing and transport allowance to each employee’s retirement
savings account maintained with their nominated pension fund administrators
Gratuity scheme
The Bank has a gratuity scheme for employees who have spent 10 years and above in its employment. An amount of N2.6 billion (N741 million; 2011)
was transferred to the fund administrator.
72
32
Provisions
2012
2011
1 January
2011
N’million
N’million
N’million
1,290
18
18
-
1,224
-
- Additional provisions
22
48
-
Utilised during the year
(33)
-
-
1,290
18
At 1 January
At 31 December
Current
Non-current
1,279
-
-
-
1,279
1,290
18
1,279
1,290
18
Included within provisions are:
Provisions of N1.051 billion (2011: N1.2 billion) have been made in respect of costs arising from contingent liabilities and contractual commitments.
An amount of N228 million representing a provision for certain legal claims brought against the Bank by customers and former staff. Legal actions are
subject to many uncertainties, and their outcome is often difficult to predict, particularly in the earlier stages of a case.
33
Other liabilities
2012
2011
N’million
Customer deposits for letters of credit
Accounts payable
Unearned income
N’million
1 January
2011
N’million
9,932
-
-
25,814
34,249
27,528
672
-
-
Bank cheques/draft
1,258
1,258
939
Other liabilities
7,566
4,899
2,250
45,242
40,406
30,717
73
34
Share capital
Authorised
30,000,000,000 ordinary shares of 50k each
15,000
15,000
15,000
9,241
13,960
6,940
13,960
6,940
3,609
3,337
7,020
3,331
-
-
13,960
6,940
Issued and fully paid
18,482,529,765 ordinary shares of 50 kobo each
Movements during the period:
Balance at 1 January
Issued during the year
Cancelled during the year
(8,056)
At 31 December
35
9,241
Share premium and reserves
84,799
54,119
11,917
Issued during the year
63,407
30,680
42,202
-
-
84,799
54,119
Cancelled during the year
(32,245)
At 31 December 2011
115,961
In 2012, a special resolution was passed at the Annual General Meeting to undertake a share reduction that resulted into cancelation of 16,111,111,111
shares, worth N8,055,555,556 and share premium of N32, 244,444,445. The contra of this resulted in a credit of N40, 301,021,171 in retained earnings
The nature and purpose of the reserves in equity are as follows:
Share premium: Premium from the issue of shares are reported in share premium.
Retained earnings: Retained earnings comprise the undistributed profits from previous years, which have not been reclassified to the other reserves
noted below.
Statutory reserve: Undistributable earnings required to be kept by the Central Bank in accordance with national law.
SMEISS reserve: Appropriated from retained earnings by regulation for investment in small scale industries.
Revaluation reserve: The revaluation reserve shows the effects from the fair value measurement of equity instruments elected to be presented in other
comprehensive income on initial recognition after deduction of deferred taxes. No gains or losses are recognised in the income statement.
36
Contingent liabilities and commitments
36.1
Capital commitments
2012
2011
Authorised and contracted
36.2
N’million
N’million
3,151
1,735
Confirmed credits and other obligations on behalf of customers
In the normal course of business the Bank is a party to financial instruments with off-balance sheet risk. These instruments
are issued to meet the credit and other financial requirements of customers. The contractual amounts of the off-balance
sheet financial instruments are:
Contingent Liability - Bonds & Guarantees
63,386
72,005
Contingent Liability - unfunded letters of credit
93,473
108,613
6,401
18,799
163,260
199,417
Contingent Liability - Guaranteed commercial papers
74
37
Litigation
The Bank is a party to legal actions arising out of its normal business operations for claims against it totaling N114 billion as at 31 December 2012 (2011:
N242 billion).
The Directors believe that, based on currently available information and advice of counsel, none of the outcomes that result from such proceedings will
have a material adverse effect on the financial position of the Group, either individually or in the aggregate. Consequently, no provision has been made
in these financial statements.
37a
Events After Reporting Period
During the year, the Bank carried out a share reconstruction of its share capital in line with the recommendations of the Shareholders at the Annual
General Meeting. The reconstruction which was effective 31 December 2012 was stamped at the Corporate Affairs Commissions on 12 March 2013.
Apart from the above, there are no Post Balance Sheet Events which could have had a material effect on the state of affairs of the Company as at
December 31, 2012 which have not been adequately provided for.
38
Related party transactions
The parent company of the Bank is Ecobank Transnational Incorporated.
A number of banking transactions are entered into with related parties in the normal course of business. These include loans and deposits.
The volumes of related-party transactions, outstanding balances at the year-end, and relating expense and income for the year are as follows:
75
38.1 Included in loans and advances is an amount of N40.6 billion (2011: N5.2 billion) representing credit
facilities to companies in which certain directors and shareholders have interests and personal loans to
directors. The balances as at 31 December, 2012 are as follows:
Name of company/individual
Relationship
Facility Type
N’million
Status
Security
Costain West Africa Plc
Joint director
Overdraft
834
Performing
Legal mortgage
Nigerian Ropes Plc
Joint director
Term loan
112
Performing
Legal mortgage
Shoreline Natural Resources Ltd
Joint director
Term loan
15,618
Performing
Debenture
Shoreline Power Company Limited
Joint director
Term loan
2,674
Computer Warehouse Group Limited
Joint director
Lease
43
Performing
Asset financed
Director
Term loan
8
Performing
Domiciliation
Ex-Director
Ex-Director of
Parent company
Overdraft
1
Performing
Mortgage
68
Performing
Mortgage
4
Performing
Share
Mortgage
property
Mortgage
property
Mortgage
77
Performing
Legal mortgage
Mortgage
21
Performing
Legal mortgage
Term loan
9
Performing
Asset Financed
Term loan
6
Performing
Asset financed
Mortgage
95
Performing
Legal mortgage
Aigbokhaevbo Kingsley
Chief J.A Odeyemi
Offong & Hamda Ambah
Dele Alabi
Gbenga Kuye
Okorodudu Jolone
Okorodudu Jolone
Ronke Wilson
Henry Ajagbawa
Director
Director
(until January
2012)
Executive in
parent company
Executive in
parent company
Executive in
parent company
Performing Charge over Asset
Agbara Estate Limited
Director
Director of Parent
company
Term loan
1,394
Doubtful
Mortgage
Bewcastle Nigeria Limited
Holding Company
Term loan
11,368
Performing
ETI Guarantee
Bewcastle Nigeria Limited
Holding Company
Overdraft
1,987
Performing
ETI Guarantee
Holding Company
Term loan
4,752
Performing
Share
Holding Company
Overdraft
119
Performing
Share
Clina-Lancet Laboratories Ltd
Joint director
Lease
4
Performing
Asset financed
Oceanic Homes, Savings and
Holding Company
Term loan
1,436
Doubtful
Clean
Loans Limited
40,630
Off-balance sheet engagements
Costain West Africa Plc
Joint director
3,116
Legal mortgage
3,116
The bank granted various credit facilities to other companies which have common directors with the bank and those that are members of the Bank. The
rates and terms agreed are comparable to other facilities being held in the bank’s portfolio. Details of these are described below:
38.2
Period ended 31 December 2012
Key management personnel
Common Directorship
N’million
N’million
Loans outstanding at 1 January
Loans issued during the year
133
5,090
-
35,432
Loan repayments during the year
(26)
Loans outstanding at 31 December
107
40,523
76
38.2
Loans and advances to related parties (cont’d)
The loans issued to directors and other key management personnel (and close family members) during the year of N35.4 billion are repayable monthly
over two years and have variable interest rates. The loans advanced to the directors during the year are collateralised.
38.3
Deposits from related parties
Key management
personnel
Period ended 31 December 2012
N’million
Due to customers
Deposits at 1 January
595
Deposits received during the year
977
Deposits repaid during the year
(1,454)
Deposits at 31 December
39
118
Employees
The average number of persons employed by the Bank during the period was as follows:
31 December
2012
Executive directors
Management
Non-management
Number
31 December
2011
1 January
2011
6
5
6
292
281
118
6,890
7,473
2,652
7,188
7,759
2,776
Compensation for the above staff:
N'million
Executive directors
Other staff (excluding executive directors)
39
125
311
293
46,957
16,663
12,814
47,082
16,974
13,107
Employees (continued)
The number of employees of the Bank, other than directors, who received emoluments in the following ranges (excluding pension contributions and
certain benefits) were:
31 December
2012
Number
31 December
2011
1 January
2011
Less than N1,000,001
221
232
270
N1,000,001 - N2,000,000
378
953
444
N2,000,001 - N3,000,000
508
717
805
N3,000,001 - N4,000,000
1,382
1,531
421
N4,000,001 - N5,000,000
1,919
1,820
242
N5,000,001 - N6,000,000
-
231
242
2,774
2,270
346
7,182
7,754
2,770
N6,000,001 and above
In accordance with the provisions of the Pensions Act 2004, the Bank commenced a contributory pension scheme in January 2005. The contribution by
employees and the bank are 7.5% and 7.5% respectively of the employees’ basic salary, housing and transport allowances. The contribution by the Bank
during the period was N1.65 billion and N538 (2011) respectively.
77
40
Directors' emoluments
Remuneration paid to the Bank's directors (excluding certain allowances) was:
31 December
2012
N’million
31 December
2011
1 January
2011
Fees and sitting allowances
28
25
31
Executive compensation
71
38
28
Other director expenses
26
248
234
125
311
293
Chairman
15
12
7
Highest paid director
45
45
38
Fees and other emoluments disclosed above include amounts paid to:
The number of directors who received fees and other emoluments (excluding pension contributions and certain benefit) in the following ranges was:
41
31 December
2012
N’million
31 December
2011
1 January
2011
Below N3,000,001
-
-
3
N3,000,001 - N4,000,000
-
-
3
N4,000,001 - N5,000,000
6
6
1
N5,000,001 and above
8
6
4
14
12
11
Compliance with banking regulations
The Bank contravened the following banking legislations and provisions during the year:
Banking legislation
Nature of Contravention
Penalties
N’million
31 December
31 December
2012
2011
Section 60 (1) of BOFIA 1991 Amended
- Illegal transfer on the account of Folky Merchants Nigeria Limited
- Failure to return to the CBN, WDAS funds purchased after five
Section 2.15 of the CBN Revised Guidelines for working days of non utilization in line with regulation
the Operation of FX Market
Section 2.15 of the CBN Revised Guidelines for - Processing petroleum products importation without valid DPR
the Operation of FX Market
import permits as at time of examination
Provision of the Regulation of the Scope of
Banking Activities and Ancillary Matter No. 3, - Non-compliance with the provision of the regulations on the
2016
scope of Banking activities and ancillary matters No. 3 2016
- Non-submission of Returns on Parastatal balances with Financial
Institutions
- Failure to obtain approval for relocation of branches
Section 6 (1) OF BOFIA 1991 Amended
- Failure to comply with Regulatory directives on Organogram
- Contravention of Refinancing and Rediscounting Scheme (RRF)
Section 9 (9) of the RRF Guidelines
Guidelines
2
2
2
2
2
-
2
-
0.08
-
28
-
4
-
217
-
- Failure to render daily return
0.03
-
Section 25 of BOFIA 1991 Amended
- Late rendition of daily e-Fass return
0.03
-
- Sale of Properties by private tenders
2
-
260
4
Section 25 of BOFIA 1991 Amended
78
42
Financial risk management The Bank’s business involves taking on risks in a targeted manner and managing them professionally. The core functions of the Bank’s risk management
are to identify all key risks for the Bank, measure these risks, manage the risk positions and determine capital allocations. The Bank regularly reviews
its risk management policies and systems to reflect changes in markets, products and best market practice. The Bank’s aim is to achieve an appropriate
balance between risk and return and minimise potential adverse effects on the Bank’s financial performance. The Bank defines risk as the possibility of
losses or profits foregone, which may be caused by internal or external factors.
Risk management is carried out by the Bank Risk Management under policies approved by the Board of Directors. Bank Risk Management identifies,
evaluates and hedges financial risks in close co-operation with the operating units of the Bank. The Board provides written principles for overall risk
management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial
instruments and non-derivative financial instruments. In addition, the Internal Audit and Compliance is responsible for the independent review of risk
management and the control environment.
The most important types of risk are credit risk, liquidity risk, market risk and other operational risk. Market risk includes currency risk, interest rate risk
and other price risk.
42.1
Credit risk
Credit risk is the risk of suffering financial loss, should any of the Bank’s customers, clients or market counterparties fail to fulfill their contractual
obligations to the Bank. Credit risk arises mainly from commercial and consumer loans and advances, credit cards, and loan commitments arising from
such lending activities, but can also arise from credit enhancement provided, financial guarantees, letters of credit, endorsements and acceptances.
The Bank is also exposed to other credit risks arising from investments in debt securities and other exposures arising from its trading activities (‘trading
exposures’), including non-equity trading portfolio assets, derivatives and settlement balances with market counterparties and reverse repurchase loans.
Credit risk is the single largest risk for the Bank’s business; the directors therefore carefully manage the exposure to credit risk. The credit risk
management and control are centralised in a credit risk management team, which reports to the Board of Directors and head of each business unit
regularly.
42.1.1 Credit risk measurement
(a)
Loans and advances (including loan commitments and guarantees)
The estimation of credit exposure is complex and requires the use of models, as the value of a product varies with changes in market variables, expected
cash flows and the passage of time. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults
occurring, of the associated loss ratios and of default correlations between counterparties.
The Bank has developed models to support the quantification of the credit risk. These rating and scoring models are in use for all key credit portfolios and
form the basis for measuring default risks. In measuring credit risk of loan and advances at a counterparty level, the Bank considers three components: (i)
the ‘probability of default’ (PD) by the client or counterparty on its contractual obligations; (ii) current exposures to the counterparty and its likely future
development, from which the Bank derive the ‘exposure at default’ (EAD); and (iii) the likely recovery ratio on the defaulted obligations (the ‘loss given
default’) (LGD). The models are reviewed regularly to monitor their robustness relative to actual performance and amended as necessary to optimise
their effectiveness.
(i)
Probability of default
The Bank assesses the probability of default of individual counterparties using internal rating tools tailored to the various categories of counterparty. They
have been developed internally and combine statistical analysis with credit officer judgement. They are validated, where appropriate, by comparison
with externally available data. The Bank’s rating method comprises 10 rating levels for loans. The rating methods are subject to an annual validation and
recalibration so that they reflect the latest projection in the light of all actually observed defaults.
The Bank’s internal ratings scale and mapping of external ratings as supplemented by the Bank’s own assessment through the use of internal rating tools
are as follows:
The Bank utilizes an internal risk system rating based on a scale of 1 to 10. A risk rating of “1” identifies obligors or transactions of the highest quality
or lowest risk. A risk rating of “10” is assigned to obligor’s or transactions of lowest quality or highest risk. The table below provides a grid showing
comparisons between the risk rating system of Ecobank and the rating scale used by Standard & Poor’s.
79
Investment quality
Investment Grade
Non-Investment Grade
Ecobank
S&P
Definition
1
AAA
2
AA
3
A
4
BBB
5
BB
6
B
7
CCC
8
CC
9
C
Substandard credit quality
10
D
Doubtful / Loss
Largely risk free
Exceptional credit / Minimal risk
Excellent credit / very low risk
Good credit quality / low risk
Satisfactory credit quality
Acceptable credit quality but less stable
Risk factors deteriorating
Special mention
Obligors risk rated 1 to 4 are considered low risk ("investment grade"). Those risk rated 5 and 6 are considered as medium risk, while those risk rated 7
through 10 are considered high risk. Medium and high risk obligors are also commonly categorized as "non-investment grade".
Risk rating is assigned to individual obligors (obligor risk ratings) and to individual credit facilities (facility risk rating). They are also assigned total
facilities extended to an obligor (approval risk rating), to all the facilities extended to a group or related obligors (economic group rating), or to an entire
portfolio (portfolio risk rating).
(ii)
Exposure at default (“EAD”)
“EAD is based on the amounts the Bank expects to be owed at the time of default. For example, for a loan this is the face value. For a commitment, the
Bank includes any amount already drawn plus the further amount that may have been drawn by the time of default, should it occur.
(iii)
Loss given default / Loss severity
Loss given default or loss severity represents the Bank’s expectation of the extent of loss on a claim should default occur. It is expressed as a percentage
loss per unit of exposure and typically varies by type of counterparty, type and seniority of claim and availability of collateral or other credit mitigation
The measurement of exposure at default and loss given default is based on the risk parameters standard under Basel II.
(b)
Debt securities and other bills
For debt securities, external rating such as Standard & Poor’s rating or their equivalents are used by Bank Treasury for managing of the credit risk
exposures as supplemented by the Bank’s own assessment through the use of internal ratings tools.
42.1.2 Risk limit control and mitigation policies
The Bank manages, limits and controls concentrations of credit risk wherever they are identified − in particular, to individual counterparties and Banks,
and to industries and countries.
The Bank structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted in relation to one borrower, or Banks of
borrowers, and to geographical and industry segments. Such risks are monitored on a revolving basis and subject to an annual or more frequent review,
when considered necessary. Limits on the level of credit risk by product, industry sector and by country are approved quarterly by the Board of Directors.
The exposure to any one borrower including banks and other non-bank financial institutions is further restricted by sub-limits covering on- and offstatement of financial position exposures and daily delivery risk limits in relation to trading items such as forward foreign exchange contracts. Actual
exposures against limits are monitored daily.
Lending limits are reviewed in the light of changing market and economic conditions and periodic credit reviews and assessments of probability of
default. Some other specific control and mitigation measures are outlined below:
Risk limit control and mitigation policies continued
(a)
Collateral
The Bank takes in addition to the debtor’s covenant to repay, tangible assets and/or assurances as security for the loan. The qualities the Bank looks out
for in a good collateral are:
(i)
It should have assurance of title and an ascertainable value which is stable and not subject to undesirable downward valuation. (ii)
It should also be marketable, readily realizable without undue cost or difficulties as well as be devoid of all cases of encroachment or
encumbrance and lastly, there should be a good margin between the value of the security provided and the amount of facility being
sought.
80
(iii)
There should be a good margin between the value of the security provided and the amount of facility being sought.
Exposure to credit risk is also managed through regular analysis of the ability of borrowers and potential borrowers to meet interest and capital
repayment obligations and by changing these lending limits where appropriate.
Some other specific control and mitigation measures are outlined below:
The Bank employs a range of policies and practices to mitigate credit risk. The most traditional of these is the taking of security for funds advances, which
is common practice. The Bank implements guidelines on the acceptability of specific classes of collateral or credit risk mitigation. The principal collateral
types for loans and advances are:
• Mortgages over residential properties.
• Charges over business assets such as premises, inventory and accounts receivable.
• Charges over financial instruments such as debt securities and equities.
Collateral held as security for financial assets other than loans and advances depends on the nature of the instrument.
Longer-term finance and lending to corporate entities are generally secured; revolving individual credit facilities are generally unsecured. In addition, in
order to minimise the credit loss the Bank will seek additional collateral from the counterparty as soon as impairment indicators are identified for the
relevant individual loans and advances.”
(b)
Lending limits (for derivative and loan books)
The Bank maintains strict control limits on net open derivative positions (that is, the difference between purchase and sale contracts) by both amount
and term. The amount subject to credit risk is limited to expected future net cash inflows of instruments, which in relation to derivatives are only a
fraction of the contract, or notional values used to express the volume of instruments outstanding. This credit risk exposure is managed as part of the
overall lending limits with customers, together with potential exposures from market movements. Collateral or other security is not always obtained for
credit risk exposures on these instruments, except where the Bank requires margin deposits from counterparties.
Settlement risk arises in any situation where a payment in cash, securities or equities is made in the expectation of a corresponding receipt in cash,
securities or equities. Daily settlement limits are established for each counterparty to cover the aggregate of all settlement risk arising from the Bank’s
market transactions on any single day.
(c)
Master netting arrangements
(d)
Financial covenants (for credit related commitments and loan books)
The Bank further restricts its exposure to credit losses by entering into master netting arrangements with counterparties with which it undertakes a
significant volume of transactions. Master netting arrangements do not generally result in an offset of assets and liabilities of the statement of financial
position, as transactions are either usually settled on a gross basis or under most netting agreements the right of set off is triggered only on default.
However, the credit risk associated with favourable contracts is reduced by a master netting arrangement to the extent that if a default occurs, all
amounts with the counterparty are terminated and settled on a net basis. The Bank’s overall exposure to credit risk on derivative instruments subject to
master netting arrangements can change substantially within a short period, as it is affected by each transaction subject to the arrangement.
The primary purpose of these instruments is to ensure that funds are available to a customer as required. Guarantees and standby letters of credit carry
the same credit risk as loans. Documentary and commercial letters of credit – which are written undertakings by the Bank on behalf of a customer
authorising a third party to draw drafts on the Bank up to a stipulated amount under specific terms and conditions – are collateralised by the underlying
shipments of goods to which they relate and therefore carry less risk than a direct loan
Commitments to extend credit represent unused portions of authorisations to extend credit in the form of loans, guarantees or letters of credit. With
respect to credit risk on commitments to extend credit, the Bank is potentially exposed to loss in an amount equal to the total unused commitments.
However, the likely amount of loss is less than the total unused commitments, as most commitments to extend credit are contingent upon customers
maintaining specific credit standards (often referred to as financial covenants).
The Bank monitors the term to maturity of credit commitments because longer-term commitments generally have a greater degree of credit risk than
shorter-term commitments
42.1.3 Impairment and provisioning policies
The internal and external rating systems described in Note 41.1.1 focus on expected credit losses – that is, taking into account the risk of future events
giving rise to losses. In contrast, impairment allowances are recognised for financial reporting purposes only for losses that have been incurred at the
reporting date based on objective evidence of impairment. Due to the different methodologies applied, the amount of incurred credit losses provided for
in the financial statements is usually lower than the amount determined from the expected loss model that is used for internal operational management
and banking regulation purposes.
The impairment allowance shown in the statement of financial position at year-end is derived from each of the four internal rating grades. However,
the largest component of the impairment allowance comes from the default grade. The table below shows the percentage of the Bank’s on- and offbalance sheet items, like financial guarantees, loan commitments and other credit related obligations, relating to loans and advances and the associated
impairment allowance for each of the Bank’s internal rating categories
81
2012
Loans and advances
1. Current
1A. Watchlist
II. Substandard
Impairment provision
Amount
%
Amount
%
490,309
52,575
86.0%
4,299
19.2%
9.2%
1,029
3,026
4.6%
0.5%
106
0.5%
III. Doubtful
10,633
1.9%
6,111
27.3%
IV. Loss
12,702
2.2%
10,827
48.4%
569,245
100%
22,372
100%
2011
Loans and advances
Amount
1. Current
1A. Watchlist
%
Amount
%
397,246
92.9%
4,002
22.7%
5,633
1.3%
1,016
5.8%
II. Substandard
8,860
2.1%
672
3.8%
III. Doubtful
6,498
1.5%
2,904
16.5%
IV. Loss
9,531
2.2%
9,025
51.2%
427,768
100%
17,618
100%
2010
Loans and advances
Amount
1. Current
1A. Watchlist
II. Substandard
%
Amount
%
188,187
69.4%
4,551
9.9%
18,473
6.8%
-
0.0%
3,916
1.4%
787
1.7%
III. Doubtful
19,433
7.2%
8,223
17.9%
IV. Loss
41,336
15.2%
32,415
70.5%
271,345
100%
45,976
100%
82
42.1.4 Maximum exposure to credit risk before collateral held or other credit enhancements
Financial instruments whose carrying amounts do not represent the maximum exposure to credit risk without taking account of any collateral held or
other credit enhancements are disclosed in Note 35(c).
Concentration of risks of financial assets with credit risk exposure.
Maximum exposure
31 december
31 december
2012
2011
1 January
2011
Credit risk exposures relating to on-balance sheet assets are as follows:
120,078
116,597
19,437
Loans and advances to customers:
Corporate Bank
− Overdrafts
47,451
35,122
24,594
− Term loans
223,014
116,992
56,436
5,244
6,023
50,419
− Others
Domestic Bank
− Overdrafts
85,716
76,745
− Credit cards
759
667
6,195
− Term loans
181,670
171,105
83,967
− Mortgages
3,020
3,497
3,758
23,394
32,812
6,821
427,399
341,781
47,472
27,010
23,889
22,041
166,411
201,152
82,267
1,311,163
1,126,381
403,407
Trading assets
− Debt securities
− Debt securities
Other assets
Contingent liabilities and commitments are as follows:
Loan commitments and other credit related liabilities
At 31 December
42.1.5
Loans and advances
31 December 2012
Loans and
Loans and
advances to
advances to
banks
customers
Neither past due nor impaired
1 january 2011
Loans and
Loans and
advances to
advances to
banks
customers
120,078
490,309
116,597
397,246
19,437
188,187
Past due but not impaired Impaired
-
52,575
-
5,633
-
18,473
Impaired
-
26,361
-
24,889
-
64,685
120,078
569,245
116,597
427,768
19,437
271,345
Gross
Less: allowance for impairment
Net
(a)
31 December 2011
Loans and
Loans and
advances to
advances to
banks
customers
120,078
(22,372)
546,873
116,597
(17,618)
410,150
(45,976)
19,437
225,369
Loans and advances neither past due nor impaired
The credit quality of the portfolio of loans and advances that were neither past due nor impaired can be assessed by reference to the internal rating
system adopted by the Bank.
The credit quality of the portfolio of loans and advances that were neither past due nor impaired can be assessed by reference to the internal rating
system adopted by the Bank.
83
42.1.5
Loans and advances (continued)
31 December 2012
Grades
Corporate Bank
Domestic Bank
Overdrafts
Term loans
Others
Overdrafts
Credit cards
Term Loans
Mortgages
Total
1. Current
33,248
225,136
5,243
45,640
425
177,768
2,850
490,309
IA. Watchlist
14,636
-
-
37,390
303
76
170
52,575
Total
47,884
225,136
5,243
83,030
728
177,844
3,020
542,884
Mortgage loans in the sub-standard class were considered not to be impaired after taking into consideration the recoverability from collateral.
31 December 2011
Corporate Bank
Grades:
1. Current
IA. Watchlist
Total
Overdrafts
Term loans
35,407
4,870
40,277
Domestic Bank
Others
Over drafts
Credit cards
Term Loans
Mortgages
Total
130,580
-
56,465
674
169,891
4,229
397,246
-
-
762
-
-
-
5,632
130,580
-
57,227
674
169,891
4,229
402,878
1 January 2011
Corporate Bank
Grades :
1. Current
IA. Watchlist
Total
Overdrafts
Term loans
5,167
507
5,674
Domestic Bank
Others
Overdrafts
Credit cards
Term Loans
Mortgages
Total
52,959
-
38,785
5,062
82,772
3,442
188,187
5,199
-
3,807
497
8,125
338
18,473
58,158
-
42,592
5,559
90,897
3,780
206,660
84
42.1.5
(b)
Loans and advances (continued)
Loans and advances past due but not impaired
Late processing and other administrative delays on the side of the borrower can lead to a financial asset being past due but not impaired. Therefore,
loans and advances less than 90 days past due are not usually considered impaired, unless other information is available to indicate the contrary. Gross
amount of loans and advances by class to customers that were past due but not impaired were as follows:
Loans and advances less than 90 days past due are not considered impaired, unless other information is available to indicate the contrary. Gross amount
of loans and advances by class to customers that were past due but not impaired were as follows:
31 December 2012
Grades
Corporate Bank
Overdrafts
Term loans
Domestic Bank
Others
Overdrafts
Credit cards
Term Loans
Mortgages
Total
Past due up to 30 days
1,938
-
-
3,139
-
-
-
5,077
Past due 30-60 days
8,413
-
-
3,784
-
-
31
12,228
Past due 60-90 days
4,285
-
-
30,467
303
76
139
35,270
14,636
-
-
37,390
303
76
170
52,575
Total
Fair value of collateral
9,898
-
-
13,578
-
-
-
23,476
Amount of undercollateralisation
4,738
-
-
23,812
303
76
170
29,099
Overdrafts
Term loans
Others
Overdrafts
Credit cards
Term Loans
Mortgages
Total
31 December 2011
Grades
Corporate Bank
Domestic Bank
173
-
-
536
-
-
-
709
Past due 30-60 days
-
-
-
113
-
-
-
113
Past due 60-90 days
4,698
-
-
114
-
-
-
4,812
Total
4,870
-
-
762
-
-
-
5,634
-
-
-
-
-
-
-
-
4,870
-
-
762
-
-
-
5,633
Amount of undercollaterization
85
42.1.5 Loans and advances (continued)
1 January 2011
Corporate Bank
Overdrafts
Domestic Bank
Term loans
Others
Overdrafts
Credit cards
Term Loans
Mortgages
Total
237
-
1
10,219
114
3,312
88
13,971
Past due 30-60 days
-
-
-
2,380
40
1,434
126
3,980
Past due 60-90 days
-
-
-
137
120
66
199
522
237
-
1
12,736
274
4,812
413
18,473
Total
Amount of undercollateralisation
-
-
-
-
-
-
-
-
237
-
1
12,736
274
4,812
413
18,473
(c)
Loans and advances individually impaired
(i)
The individually impaired loans and advances to customers before taking into consideration the cash flows from collateral held is N26.3 billion (2011:
N24.8 billion).
The breakdown of the gross amount of individually impaired loans and advances by class are as follows:
31 December 2012
Grades
Individual impaired loans
Corporate Bank
Overdrafts
Term loans
Domestic Bank
Others
Overdrafts
Credit cards
Term Loans
Mortgages
Total
1
-
-
17,120
729
8,511
-
26,361
Impairment allowance
434
2,059
62
13,104
740
5,840
132
22,372
-
-
-
5,603
-
6,133
-
11,736
81
1,278
-
17,617
1,465
4,447
-
24,889
368
-
872
-
5
-
11,859
2,602
1,435
14
3,024
906
55
-
17,618
3,522
31 December 2011
1 January 2011
(ii)
9,356
1
-
40,683
6,018
7,935
692
64,685
2,412
3,263
120
30,390
4,884
4,514
393
45,976
-
-
-
5,076
273
51
148
5,548
The total amount of individually impaired loans and advances to banks as at 31 December 2012 was N20.6 billion (2011: N24.8 billion).
86
42.1.6 Debt securities
The tables below present an analysis of debt securities by rating agency designation at 31 December 2012 and at 31 December 2011, based on
Standard & Poor’s ratings or their equivalent:
42.1.7 Repossessed collateral
The Bank obtained assets by taking possession of collateral held as security. The nature and carrying amounts of such assets at the reporting date are
as follows:
Nature of assets
Residential property
2012
2011
2012
Carrying amount
Carrying amount
Carrying amount
Collateral Related Loan
180
113
597
5,257
427
1,009
Repossessed properties are sold as soon as practicable, with the proceeds used to reduce the outstanding indebtedness. Repossessed property is
classified within ‘other assets’.
42.2
Market risk
The Bank takes on exposure to market risks, which is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risks arise from open positions in interest rate, currency and equity products, all of which are exposed to general and
specific market movements and changes in the level of volatility of market rates or prices such as interest rates, foreign exchange rates and equity prices.
The Bank separates exposures to market risk into either trading or non-trading portfolios.
The market risks arising from trading and non-trading activities are concentrated in Bank Treasury and monitored by two teams separately. Regular
reports are submitted to the Board of Directors and heads of each business unit.
Trading portfolios include those positions arising from market-making transactions where the Bank acts as principal with clients or with the market.
Non-trading portfolios primarily arise from the interest rate management of the entity’s retail and commercial banking assets and liabilities. Non-trading
portfolios also consist of foreign exchange and equity risks arising from the Bank’s held-to-maturity and available-for-sale financial assets.
42.2.1 Market risk measurement techniques
The objective of market risk measurement is to manage and control market risk exposures within acceptable limits while optimising the return on risk.
The Bank Treasury is responsible for the development of detailed risk management policies and for day-to-day implementation of those policies.
(a)
Value at risk
The Bank applies a ‘value at risk’ (VAR) methodology to its trading and non-trading portfolios to estimate the market risk of positions held and the
maximum losses expected, based upon a number of assumptions for various changes in market conditions. The Board sets limits on the value of risk that
may be accepted for the Bank, which are monitored on a daily basis by Bank market risk. Interest rate risk in the non-trading book is measured through
the use of interest rate repricing gap analysis (Note 3.2.5).
VAR is a statistically based estimate of the potential loss on the current portfolio from adverse market movements. It expresses the ‘maximum’ amount
the Bank might lose, but only to a certain level of confidence (95%). There is therefore a specified statistical probability (5%) that actual loss could be
greater than the VAR estimate. The VAR model assumes a certain ‘holding period’ until positions can be closed (1 day). It also assumes that market
moves occurring over this holding period will follow a similar pattern to those that have occurred over 1-day period in the past. The Bank’s assessment
of past movements is based on data for the past five years. The Bank applies these historical changes in rates, prices, indices, etc. directly to its current
positions − a method known as historical simulation. Actual outcomes are monitored regularly to test the validity of the assumptions and parameters/
factors used in the VAR calculation. The use of this approach does not prevent losses outside of these limits in the event of more significant market
movements.
The quality of the VAR model is continuously monitored by back-testing the VAR results for trading books. All back-testing exceptions and any exceptional
revenues on the profit side of the VAR distribution are investigated, and all back-testing results are reported to the Board of Directors.
(b)
Stress tests
Stress tests provide an indication of the potential size of losses that could arise in extreme conditions. The stress tests carried out by Bank market risk
include: risk factor stress testing, where stress movements are applied to each risk category; emerging market stress testing, where emerging market
portfolios are subject to stress movements; and ad hoc stress testing, which includes applying possible stress events to specific positions or regions − for
example, the stress outcome to a region following a currency peg break.
The results of the stress tests are reviewed by senior management in each business unit and by the Board of Directors. The stress testing is tailored to the
business and typically uses scenario analysis.
87
42.2.2 VAR summary for 2012 and 2011
(a)
FX trading portfolio VAR
The average FX VAR by historical simulation at a 95% confidence level over a 1-day holding period in 2012 was N5.2 million (2011: N2.5 million).
42.2.3 Foreign exchange risk
The Bank takes on exposure to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position and cash flows. The
Board sets limits on the level of exposure by currency and in aggregate for both overnight and intra-day positions, which are monitored daily. The table
below summarises the Bank’s exposure to foreign exchange risk at 31 December 2012. Included in the table are the Bank’s financial instruments at
carrying amounts, categorised by currency.
Concentrations of currency risk – on- and off-balance sheet financial instruments
Dollar
Euro
CFA
Naira
Gh. Cedis
Others
Total
Assets
Trading assets
Investment securities - available-for-sale
1,303
944
-
110,076
-
-
112,323
77,938
-
-
42,140
-
-
120,078
171,808
66
-
374,813
-
186
546,873
-
-
-
23,393
-
-
23,393
49,069
-
-
257,623
-
-
306,692
Pledged assets
-
-
-
109,334
-
-
109,334
Other assets
-
8,229
-
30,153
-
-
38,382
300,118
9,239
-
947,534
-
186
1,257,077
Total financial assets
Liabilities
Deposits from banks
Due to customers
21,372
-
-
117
-
21,489
217,064
13,421
-
812,728
-
1,043,213
Borrowed funds
12,504
-
-
46,380
-
58,883
Other liabilities
7,722
1,059
-
36,462
-
45,242
258,662
14,480
-
895,687
-
1,168,827
Total financial Liabilities
Net on-balance sheet financial position
Credit commitments
41,456
(5,241)
-
52,847
-
186
88,250
104,367
18,473
-
39,848
-
732
163,421
Total financial liabilities
Credit commitments
170,713
3,463
-
830,559
-
7,663
1,012,398
86,334
10,450
-
902,781
-
5,790
1,005,356
84,379
(6,987)
-
(72,222)
-
1,873
7,042
110,906
18,473
-
76,748
-
7,567
213,694
As at 1 January 2011
90,714
11,598
-
317,689
-
1,653
421,653
89,744
11,584
-
274,547
-
1,707
377,582
Credit commitments
970
52,732
13
(6,744)
-
43,142
-
(54)
44,071
-
41,292
-
(34)
87,246
42.2.4 Foreign exchange risk sensitive analysis
The foreign currency risk sensitivity analysis reflects the expected financial impact in Naira equivalent resulting from a 1% shock to foreign currency risk
exposure. The foreign exchange rate sensitivity analysis reflects a potential gain of N.211 billion and loss of N.15 billion for USD and Euro Aggregate Net
open positions respectively.
88
42.2.5 Interest rate risk
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair
value interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rates. The Bank takes on
exposure to the effects of fluctuations in the prevailing levels of market interest rates on both its fair value and cash flow risks. Interest margins may
increase as a result of such changes but may reduce losses in the event that unexpected movements arise. The Board sets limits on the level of mismatch
of interest rate repricing and value at risk that may be undertaken, which is monitored daily by Bank Treasury.
The tables below summarise the Bank’s non-trading book fair value exposure to interest rate risks. It includes the Bank’s financial instruments at carrying
amounts (non-derivatives), categorised by the earlier of contractual repricing (for example for floating rate notes).
Up to 1 month
1-3 months 3-12 months
1-5 years Over 5 years
Non-interest
bearing
Total
Assets
20,783
-
-
-
-
91,539
112,322
36,142
8,364
-
-
-
75,572
120,078
156,479
113,162
55,291
145,898
76,045
-
546,873
-
-
23,394
-
-
-
23,394
13,978
23,956
69,739
168,369
30,650
-
306,692
Pledged assets
14,300
57,612
2,650
15,983
18,789
-
109,334
-
79
22,589
15,709
-
-
38,382
241,682
203,173
173,668
345,960
125,484
167,112
1,257,078
Trading assets
Other assets
Liabilities
Deposits from banks
Due to customers
13,082
8,407
-
-
-
-
21,489
331,998
109,787
29,761
4,897
-
566,769
1,043,213
Borrowed funds
-
-
-
163
58,720
-
58,883
Other liabilities
-
16,453
14,038
14,751
-
-
45,241
345,080
134,647
43,799
19,811
58,720
566,769
1,168,826
(103,398)
68,526
129,869
326,149
66,764
Total interest repricing gap
Up to 1 month
Non-interest
bearing
Total
29,229
-
-
-
-
57,690
86,919
116,597
-
-
-
-
-
116,597
176,340
54,409
42,240
137,161
-
-
410,150
13,116
5,818
13,878
-
-
-
32,812
-
-
1,600
12,344
328,087
-
342,031
Trading assets
Investment securities-available-for-sale
Pledged assets
Other assets
-
-
-
-
18,600
-
18,600
11,879
95
358
783
692
10,081
23,888
347,161
60,322
58,076
150,288
334,349
67,771
1,030,997
Liabilities
Deposits from banks
Due to customers
Borrowed funds
Other liabilities
5,687
3,105
1,324
-
-
-
10,116
769,777
94,036
24,894
1,718
-
-
890,425
-
-
8,830
-
44,579
-
64,409
3,219
15,244
-
21,943
-
-
40,406
778,683
112,385
35,048
23,661
55,579
-
1,005,356
(431,522)
(52,063)
23,028
126,627
291,800
89
Up to 1 month
17,035
-
-
-
-
Non-interest
bearing
Total
2,402
19,437
100,514
-
-
-
-
-
100,514
107,093
39450
5,316
73,510
-
-
225,370
4,929
1,893
-
-
-
-
6,822
-
-
11,928
12,344
5,712
-
29,984
Trading assets
Investment securities-available-for-sale
Pledged assets
Other assets
-
-
-
-
17,487
-
17,487
20,113
95
358
783
692
-
22,041
249,684
41,438
17,602
86,637
23,891
2,402
421,654
Liabilities
Deposits from banks
Due to customers
Borrowed funds
-
-
710
-
-
-
710
284,315
50,698
4,590
2,775
-
-
342,379
226
-
342
569
2,639
-
3,776
2,943
2,232
2,025
23,517
-
-
30,717
287,484
52,930
7,668
26,861
2,639
-
377,582
(37,800)
(11,492)
9,935
59,776
21,252
Other liabilities
42.2.6 Interest rate sensitivity
A parallel 100 basis points (1%) interest rate increase in all yield curves would increase net interest income by N4.5 billion, while a parallel decrease in
all yield would decrease net interest income by N4.5 billion.
42.3
Liquidity risk
Liquidity risk is the risk that the Bank is unable to meet its obligations when they fall due as a result of customer deposits being withdrawn, cash
requirements from contractual commitments, or other cash outflows, such as debt maturities or margin calls for derivatives. Such outflows would deplete
available cash resources for client lending, trading activities and investments. In extreme circumstances, lack of liquidity could result in reductions in the
statement of financial position and sales of assets, or potentially an inability to fulfill lending commitments. The risk that the Bank will be unable to do
so is inherent in all banking operations and can be affected by a range of institution-specific and market-wide events including, but not limited to, credit
events, merger and acquisition activity, systemic shocks and natural disasters.
42.3.1 Liquidity risk management process
The Bank’s liquidity management process, as carried out within the Bank and monitored by a separate team in Bank Treasury, includes:
• Day-to-day funding, managed by monitoring future cash flows to ensure that requirements can be met. This includes replenishment of funds as they
mature or are borrowed by customers. The Bank maintains an active presence in global money markets to enable this to happen;
• Maintaining a portfolio of highly marketable assets that can easily be liquidated as protection against any unforeseen interruption to cash flow;
• Monitoring the liquidity ratios of the statement of financial position against internal and regulatory requirements; and
• Managing the concentration and profile of debt maturities.
Monitoring and reporting take the form of cash flow measurement and projections for the next day, week and month respectively, as these are key
periods for liquidity management. The starting point for those projections is an analysis of the contractual maturity of the financial liabilities and the
expected collection date of the financial assets (Notes 41.3.3 – 41.3.4).
Bank Treasury also monitors unmatched medium-term assets, the level and type of undrawn lending commitments, the usage of overdraft facilities and
the impact of contingent liabilities such as standby letters of credit and guarantees.
42.3.2 Funding approach
Sources of liquidity are regularly reviewed by a separate team in Bank Treasury to maintain a wide diversification by currency, provider, product and term.
90
42.3.3 Non-derivative financial liabilities and assets held for managing liquidity risk
The table below presents the cash flows payable by the Bank under non-derivative financial liabilities and assets held for managing liquidity risk by
remaining contractual maturities at the reporting date. The amounts disclosed in the table are the contractual undiscounted cash flow, whereas the Bank
manages the liquidity risk based on a different basis (see Note 41.3.1 for details), not resulting in a significantly different analysis.
Up to 1 month
1 -3 months 3 - 12 months
1 - 5 years Over 5 years
Total
Liabilities
Deposits from banks
13,342
8,532
-
-
-
21,875
Due to customers
11,189
160,407
879,734
-
-
1,051,331
Borrowed funds
Other liabilities
-
-
163
58,935
-
59,098
16,453
14,038
16,030
-
-
46,520
-
-
-
1,581
-
1,581
40,985
182,977
895,927
61,795
-
1,181,684
Provisions
Current income tax liabilities
Total liabilities (contractual maturity)
1,279
1,279
Total assets
20,783
-
-
-
91,539
112,323
112,108
8,442
-
-
-
120,551
156,618
113,256
547,299
Trading assets
55,293
146,022
76,110
23,550
-
-
23,550
54,043
169,727
30,905
292,671
13,978
24,018
Pledged assets
14,440
58,175
2,676
16,139
18,973
110,402
-
79
21,234
15,710
-
37,023
317,927
203,970
156,796
347,598
217,527
1,243,818
Other assets
Total assets (expected maturity dates)
Up to 1 month
Total
Liabilities
Deposits from banks
Due to customers
Borrowed funds
Other liabilities
5,729
3,105
1,324
-
-
10,158
773,487
94,036
24,894
1,718
-
894,135
-
-
8,830
-
55,579
64,409
3,433
15,244
-
21,943
-
40,620
-
1,548
Provisions
-
-
-
1,290
-
-
-
1,548
1,290
Deferred income tax liabilities
-
-
-
533,642
-
533,642
-
-
-
-
1,502
1,502
782,649
112,385
35,048
26,499
57,081
1,013,662
Total assets
86,919
-
-
-
-
86,919
117,150
16,044
-
-
-
133,194
176,758
54,409
42,240
137,161
-
413,567
13,335
5,818
13,878
-
-
33,031
-
-
1,600
12,344
330,557
344,501
Trading assets
Pledged assets
Other assets
-
-
-
-
18,738
18,738
11,879
95
358
783
10,773
23,888
409,041
76,366
58,076
150,288
360,067
1,053,838
91
Up to 1 month
Total
Liabilities
Deposits from banks
Due to customers
Borrowed funds
Other liabilities
-
-
713
-
-
713
285,742
50,698
4,590
2,775
-
343,806
239
-
342
569
2,639
3,789
2,943
2,232
2,025
23,517
-
30,717
Provisions
-
-
-
18
-
18
-
-
-
329
-
329
-
-
-
502
-
502
288,924
52,930
7,670
27,710
2,639
379,873
Total assets
19,437
-
-
-
-
19,437
100,933
-
-
-
-
100,933
108,971
39,450
5,316
73,510
-
227,248
4,974
1,893
-
-
-
6,867
-
-
12,153
5,712
-
30,209
-
-
17,618
17,618
20,113
95
358
783
692
22,041
254,428
41,438
17,827
86,637
24,022
424,352
Trading assets
Pledged assets
Other assets
42.3.4 Assets held for managing liquidity risk
The Bank holds a diversified portfolio of cash and high-quality highly-liquid securities to support payment obligations and contingent funding in a
stressed market environment. The Bank’s assets held for managing liquidity risk comprise:
• Cash and balances with central banks;
• Certificates of deposit;
• Government bonds and other securities that are readily acceptable in repurchase agreements with central banks; and
• Secondary sources of liquidity in the form of highly liquid instruments in the Bank’s trading portfolios.”
42.3.5 Contingent liabilities and commitments
(a)
Loan commitments
The dates of the contractual amounts of the Bank’s contingent liabilities that it commits to extend credit to customers and other facilities (Note 35) are
summarised in the table below.
(b)
Other financial facilities
(c)
Operating lease commitments
Other financial facilities (Note 35) are also included in the table below, based on the earliest contractual maturity date.
Where the Bank is the lessee, the future minimum lease payments under non-cancellable operating leases, as disclosed in Note 35, are summarised in
the table below.
(d)
Capital commitments
Capital commitments for the acquisition of buildings and equipment (Note 35) are summarised in the table below:
Guarantees, acceptances and other financial facilities
Capital commitments
Not later than 1 Year
Over one year
Total
120,550
42,710
163,260
3,151
-
3,151
123,701
42,710
166,411
92
Capital commitments
Over one year
155,857
43,560
199,417
1,735
-
1,735
157,592
43,560
201,152
Capital commitments
43
Fair value of financial instruments
(a)
Financial instruments not measured at fair value
Total
Over one year
Total
77,515
4,562
82,077
190
-
190
77,705
4,562
82,267
The following table summarises the carrying amounts and fair values of those financial assets and liabilities not presented on the Bank’s statement of
financial position at their fair value:
Carrying value
Fair Value
2012
2011
2010
2012
2011
2010
LCY'000
LCY'000
LCY'000
LCY'000
LCY'000
LCY'000
120,078
116,597
100,514
120,898
119,191
100,770
546,873
410,150
225,369
543,954
406,457
229,726
Assets
Liabilities
Deposits from banks
Due to customers
21,489
10,116
710
18,598
7,047
710
1,043,213
890,425
342,379
1,047,527
892,302
338,430
-
-
-
3,776
59,098
64,312
3,941
Other deposits
Borrowed funds
(i)
-
-
58,883
64,409
Loans and advances to bank
Loans and advances to banks include inter-bank placements and items in the course of collection.
“The carrying amount of floating rate placements and overnight deposits is a reasonable approximation of fair value.
The estimated fair value of fixed interest bearing deposits is based on discounted cash flows using prevailing money-market interest rates for debts with
similar credit risk and remaining maturity.”
(ii)
Loans and advances are net of charges for impairment. The estimated fair value of loans and advances represents the discounted amount of estimated
future cash flows expected to be received. Expected cash flows are discounted at current market rates to determine fair value.
(iii)
The fair value for loans and receivables and held-to-maturity financial assets is based on market prices or broker/dealer price quotations. Where this
information is not available, fair value is estimated using quoted market prices for securities with similar credit, maturity and yield characteristics.
Investment securities (available-for-sale) disclosed in the table above comprises only those equity securities held at cost less impairment. The fair value
for these assets is based on estimations using market prices and earnings multiples of quoted securities with similar characteristics. All other availablefor-sale financial assets are already measured and carried at fair value.
(iv)
Deposits from banks and customers
The estimated fair value of deposits with no stated maturity, which includes non-interest-bearing deposits, is the amount repayable on demand.
The estimated fair value of fixed interest-bearing deposits not quoted in an active market is based on discounted cash flows using interest rates for new
debts with similar remaining maturity.
v)
Off-balance sheet financial instruments
The estimated fair values of the off-balance sheet financial instruments are based on markets prices for similar facilities. When this information is not
available, fair value is estimated using discounted cash flow analysis.
93
Fair value of financial instruments continued
(b)
Fair value hierarchy
IFRS 7 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable.
Observable inputs reflect market data obtained from independent sources; unobservable inputs reflect the group’s market assumptions. These two types
of inputs have created the following fail value hierarchy:
• Level 1 – Level 1 - Quoted prices (adjusted) in active markets for identical assets or liabilities. This level includes listed equity securities and debt instruments on exchanges.
• Level 2 – Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is as prices) or indirectly (that is derived from prices).
• Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs). This level includes equity investments and
debt instruments with significant unobservable component
This hierarchy requires the use of observable market data when available. The group considers relevant and observable market prices in its valuations
where possible.
43.1
Assets and liabilities measured at fair value
31 December 2012
Level 1
Level 2
Trading assets
23,394
-
-
54,052
-
174,525
-
-
109,334
77,446
-
283,859
Pledge assets
Level 3
31 December 2011
Trading assets
Pledge assets
Level 1
Level 2
32,812
-
Level 3
-
119,268
-
130,004
-
-
18,600
152,080
-
148,604
1 January 2011
Trading assets
Pledge assets
Level 1
Level 2
6,821
-
Level 3
-
17,110
-
8,466
-
-
17,487
23,931
-
25,953
The following table shows the sensitivity of level 3 measurements to reasonably possible alternative assumptions:
44
Capital management
“The Bank manages its capital base to achieve a prudent balance between maintaining capital ratios to support business growth and depositor
confidence, and providing competitive returns to shareholders. The capital management process ensures that the Bank maintains sufficient capital levels
for legal and regulatory compliance purposes. The Bank ensures that its actions do not compromise sound governance and appropriate business practices
and it eliminates any negative effect on payment capacity, liquidity or profitability.”
Capital adequacy and the use of regulatory capital are monitored daily by the Bank’s management, employing techniques based on the guidelines
developed by the Central Bank of Nigeria (CBN), for supervisory purposes. The required information is filed with the CBN on a monthly basis. Auditors
to the Bank are also required to render an annual certificate to the Nigeria Deposit Insurance Corporation (NDIC) that includes the computed capital
adequacy ratio of the Bank.
The CBN requires each bank to:
(a) hold the minimum level of the regulatory capital of N25 billion and (b) maintain a ratio of total regulatory capital to the risk-weighted asset at or above the minimum of 10%.
94
The capital adequacy ratio, which reflects the capital strength of an entity compared to the minimum regulatory requirement, is calculated by dividing
the capital held by that entity by its risk weighted assets. The Bank’s regulatory capital as managed by its Financial Control and Treasury Unit is divided
into two tiers:”
• Tier I capital: (primary capital) represents permanent forms of capital such as share capital, retained earnings and reserves created by appropriations of
retained earnings. The book value of goodwill is deducted in arriving at Tier 1 capital; and
• Tier II capital: (secondary capital) includes preference shares, minority interests arising on consolidation, qualifying debt stock, fixed assets revaluation
reserves, foreign currency revaluation reserves, general provisions subject to maximum of 1.25% of risk assets and hybrid instruments - convertible
bonds.
The risk-weighted assets are measured by means of a hierarchy of five risk weights classified according to the nature of credit/counterparty risk and
reflecting an estimate of credit risks associated with each asset and counterparty. A similar treatment is adopted for off balance sheet exposures, with
some adjustments to reflect the more contingent nature of the potential losses.
The table below summarises the composition of regulatory capital and the ratios of the Bank for the years ended 31 December 2012 and 31 December,
2011. During those two years, the Bank complied with all of the externally imposed capital requirements.
31 December
2012
31 December
2011
N’million
N’million
1 January
2011
N’million
Tier 1 capital
Share capital
Share premium
Statutory reserves
Contingency reserve
SMIEIS reserve
Capital reserve
Retained earnings
Other reserves
Deposit for shares
Less: goodwill and intangible assets
9,241
13,960
6,940
115,961
84,799
54,119
6,135
6,135
6,135
-
-
-
1,150
1,150
1,150
7,218
26,018
7,218
(19,705)
(64,532)
(11,188)
33,627
7,832
1,173
-
(4,709)
(2,729)
147,622
70,653
62,818
Long-term borrowing
-
9,632
-
Minority interest
-
-
-
Convertible bonds
-
-
-
Revaluation reserve - fixed assets
-
-
-
Revaluation reserve – investment securities
-
-
-
Translation reserve
-
-
-
General provision
5,328
4,321
6,471
Total qualifying Tier 2 capital
5,328
13,953
6,471
152,950
84,605
69,289
On-balance sheet
741,100
608,831
287,908
Off-balance sheet
88,643
90,801
45,954
829,743
699,632
333,862
18%
12%
21%
Total qualifying Tier 1 capital
(6,005)
Tier 2 capital
Total regulatory capital
Risk-weighted assets:
Total risk-weighted assets
Risk weighted Capital Adequacy Ratio (CAR)
95
45
Critical accounting estimates and judgement
The Bank makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. All estimates and
assumptions required in conformity with IFRS are best estimates undertaken in accordance with the applicable standard. Estimates and judgements are
evaluated on a continuous basis, and are based on past experience and other factors, including expectations with regard to future events.
Accounting policies and directors’ judgements for certain items are especially critical for the Bank’s results and financial situation due to their materiality.
(a)
Impairment losses on loans and advances
The Bank reviews its loan portfolios to assess impairment at least on a quarterly basis. In determining whether an impairment loss should be recorded
in profit or loss, the Bank makes judgements as to whether there is any observable data indicating an impairment trigger followed by measurable
decrease in the estimated future cash flows from a portfolio of loans before the decrease can be identified with that portfolio. This evidence may include
observable data indicating that there has been an adverse change in the payment status of borrowers in a bank, or national or local economic conditions
that correlate with defaults on assets in the Bank. The directors use estimates based on historical loss experience for assets with credit risk characteristics
and objective evidence of impairment similar to those in the portfolio when scheduling future cash flows. The methodology and assumptions used for
estimating both the amount and timing of future cash flows are reviewed regularly to reduce any differences between loss estimates and actual loss
experience.
(b)
Impairment of available-for-sale equity investments
The Bank determines that available-for-sale equity investments are impaired when there has been a significant or prolonged decline in the fair value
below its cost. This determination of what is significant or prolonged requires judgement. In making this judgement, the Bank evaluates among other
factors, the volatility in share price. In addition, objective evidence of impairment may be deterioration in the financial health of the investee, industry
and sector performance, changes in technology, and operational and financing cash flows.
(c)
Fair value of financial instruments
The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using
valuation techniques. In these cases, the fair values are estimated from observable data in respect of similar financial instruments or using models.
Where market observable inputs are not available, they are estimated based on appropriate assumptions. Where valuation techniques (for example,
models) are used to determine fair values, they are validated and periodically reviewed by qualified personnel independent of those that sourced them.
All models are certified before they are used, and models are calibrated to ensure that outputs reflect actual data and comparative market prices. To
the extent practical, models use only observable data; however, areas such as credit risk (both own credit risk and counterparty risk), volatilities and
correlations require management to make estimates.
(d)
Held-to-maturity investments
In accordance with IAS 39 guidance, the Bank classifies some non-derivative financial assets with fixed or determinable payments and fixed maturity as
held-to-maturity. This classification requires significant judgement. In making this judgement, the Bank evaluates its intention and ability to hold such
investments to maturity. If the Bank were to fail to keep these investments to maturity other than for the specific circumstances – for example, selling an
insignificant amount close to maturity – the Bank is required to reclassify the entire category as available-for-sale. Accordingly, the investments would be
measured at fair value instead of amortised cost.
e)
Retirement benefits
The present value of the retirement benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of
assumptions. Any changes in these assumptions will impact the carrying amount of pension obligations.
The assumptions used in determining the net cost (income) for pensions include the discount rate. The Bank determines the appropriate discount rate
at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be
required to settle the pension obligations. In determining the appropriate discount rate, the Bank considers the interest rates of high-quality corporate
bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related
pension liability.
Other key assumptions for pension obligations are based in part on current market conditions.
46
Divisional analysis
The Bank’s operations by major business divisions during the year are summarised below:
(i)
(ii)
(iii)
Domestic banking - provides banking services to governments, small and medium scale enterprises and local companies including
retail solutions to consumers.
Corporate banking - provides a broad range of financial solutions to multinationals, regional companies, state-owned companies, nongovernmental organisations, international and multinational organisations and financial institutions.
Ecobank Capital comprises our treasury, investment banking, and asset management businesses which focus on financial markets and
investors.
96
December 2012
December 2011
Corporate
Domestic
Ecobank
Corporate
Domestic
Banking
Banking
Capital
Total
Banking
Banking
N’million
N’million
N’million
- Derived from external customers
- Derived from other business
divisions
33,752
57,096
68,009
149
50,362
(50,511)
Total revenue
33,901
107,458
17,498
(10,253)
(27,917)
(7,033)
(698)
(10,937)
(707)
(11,981)
(72,048)
(12,056)
(96,085)
Ecobank
Capital
Total
N’million
N’million
N’million
N’million
N’million
158,857
19,585
35,037
13,533
68,155
0
1,382
11,767
(13,149)
158,857
20,967
46,804
(45,203)
(6,502)
(11,110)
(12,342)
11,524
3,702
(10,347)
(26,485)
Revenue :
384
68,155
Total cost
- Interest expense
- Risk and other asset provisions
- Other operating expenses
Total Cost
Profit/(loss) before tax
Tax
Profit/(loss) after tax
(22,932)
10,969
10,969
(110,902)
(3,444)
(3,444)
(19,796)
(2,298)
(2,298)
(153,630)
(5,325)
(33,893)
5,227
15,642
12,911
2,578
-
-
7,805
15,642
12,911
(3,915)
34
(7,033)
(10,914)
(10,530)
(10,530)
(21,527)
15,260
(43,865)
(50,132)
18,023
1,321
19,344
Divisional asset
275,709
271,164
778,442
1,325,315
167,068
243,082
674,908
1,085,058
Divisional liabilities
256,026
787,187
128,473
1,171,687
184,907
705,518
119,271
1,009,696
19,683
(516,023)
649,968
153,628
(17,839)
(462,436)
555,387
75,362
Net asset
All transactions between business units were conducted at an arm’s length basis. Internal charges and transfer pricing adjustments are reflected in the
performance of each division.
The Bank operates in a single geographical location, thus no divisional analysis based on geographical location is presented in this financial statement.
97
(All amounts in N’ million Naira unless otherwise stated)
47
Transition to IFRS
Reconciliation of Equity as at:
Shareholders' equity under NGAAP
1 Jan. 2011
31 Dec. 2011
N’million
N’million
74,320
68,096
IFRS Adjustments
(a)
Fair valuation of Financial Instruments
i
Being reversal of adjustment to diminution of unquoted investment equities.
a, i
64
64
ii
Being adjustment for fair value of pledged financial assets
a,ii
(550)
511
iii
Being adjustment for fair value of debt investments securities - AFS financial assets
a,iii
73
iv
Being adjustment for fair value of equity investments - AFS financial assets
a,iv
1,650
v
Being adjustment to recognise permanent impairment of unquoted investment equities.
a,v
(b)
Loan loss provision
(210)
(4,322)
41
(247)
ii
Recognition of Interest in Suspense in interest Income
b,ii
7,828
1,306
iv
Specific and collective Impairment of loans and advances
b,iv
(19,175)
(3,424)
v
Recognition of reversal of impairment in TBPIC
b,v
(c)
Employee Benefit - staff Loans
-
12,255
i
Amortization of prepaid payroll cost over the life of the loan
c,i
(30)
(467)
ii
Increase in interest income due to application of Effective Interest Rate on staff loans
c,ii
38
516
(d)
Deferred Tax
i
Income statement impact of deferred tax asset on Employee benefits and Loan loss provision
d,ii
2,041
1,335
(f)
Retirement Benefit Obligation
IFRS adjustment to reflect additional provision for retirement benefits
f,i
(502)
(273)
Total IFRS Adjustment
(8,774)
7,265
Shareholders' equity under IFRS
65,547
75,362
98
47
Transition to IFRS continued
Reconciliation of Statement of Financial Position
01 January 2011
Note
Nigerian GAAP
Adjustments
IFRS
N’million
N’million
N’million
Assets
19,437
-
Treasury Bills
a,a
20,756
(20,756)
Bills discounted
a,b
1,233
(1,233)
a,c
100,339
a,d
231,108
(5,739)
Advances under finance leases
a,e
5,999
(5,999)
a,f
-
-Loans and receivables
a,g
19,656
a,h
-
175
6,821
(19,656)
26,036
19,437
100,514
225,369
6,821
26,036
a,i
-
3,949
3,949
Pledged Assets
a,j
-
17,487
17,487
a,k
19,595
Intangible Assets
a,l
-
155
155
Deferred tax asset
a,m
688
2,041
2,729
a,n
35,428
(13,387)
22,041
Other assets
454,239
(155)
(10,261)
19,440
443,978
Liabilities
Deposits from banks
939
a,p
340,147
Borrowings
a,q
a,r
Provisions
(229)
710
2,232
342,379
3,760
16
3,776
-
502
502
a,s
-
18
18
a,t
329
-
329
Deferred tax liability
a,u
-
Other liabilities
a,v
34,744
Total liabilities
379,919
-
-
(4,027)
30,717
1,488
378,431
Share capital
a,w
6,940
-
6,940
Share premium
a,x
54,119
-
54,119
Retained earnings
a,y
(1,242)
(9,946)
(11,188)
Other reserves
Statutory reserve
a,z
6,135
-
SSI Reserve
b,a
-
-
6,135
-
SMIES Reserve
b,b
1,150
-
1,150
Fair value reserve
b,c
-
1,173
1,173
Capital Reserves
b,d
7,218
-
7,218
Total equity
74,320
(8,773)
65,547
454,239
(10,261)
443,978
99
Reconciliation of Statement of Comprehensive Income
IFRS
Note
Interest income
c,a
Interest expense
NGAAP
49,700
(21,527)
Net interest income
Adjustments
(6,044)
-
IFRS
43,656
(21,527)
28,173
(6,044)
22,129
(13,363)
28,623
15,260
Net interest income after impairment charge for credit losses
14,810
22,579
37,389
16,390
-
16,390
Impairment charge for credit losses and investments
c,b
Net gains / (losses) from financial instruments at fair value
2,448
(178)
5,277
178
5,455
(16,663)
(307)
(16,970)
Employee benefit expense
c,c
2,270
(12,533)
-
(3,571)
-
(3,571)
(10,407)
-
(10,407)
Operating profit
(4,249)
22,272
18,023
Profit before tax
(4,249)
22,272
18,023
Income tax expense
1,958
Profit for the year
(2,291)
(637)
(12,533)
1,321
21,635
19,344
(5,597)
(5,597)
Other comprehensive income:
Revaluation of equity financial assets
c,d
-
Tax effect of revaluation of equity financial assets
-
Other comprehensive income for the year, net of tax
-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(2,291)
-
-
(5,597)
(5,597)
16,038
13,747
100
Reconciliation of Statement of Financial Position
31 December 2011
Note
Nigerian GAAP
Adjustments
IFRS
N’million
N’million
N’million
Assets
86,919
Treasury Bills
a,a
23,987
a,c
116,141
a,d
401,807
Advances under finance leases
a,e
6,871
a,f
-
-Held to maturity investments
(23,987)
86,919
-
456
116,597
8,343
410,150
(6,871)
32,812
(347,476)
32,812
a,g
347,476
a,h
-
248,136
248,136
-
a,i
-
75,294
75,294
Pledged Assets
a,j
-
18,600
18,600
a,k
67,131
-
67,131
Intangible Assets
a,l
820
-
820
Deferred tax asset
a,m
3,374
1,335
4,709
a,n
47,501
(23,613)
23,888
Other assets
-
-
-
101
Reconciliation of Statement of Financial Position continued
31 December 2011
Note
Total Assets
Nigerian GAAP
Adjustments
IFRS
N’million
N’million
N’million
1,102,027
(16,969)
1,085,058
Liabilities
Deposits from banks
a,o
10,011
105
10,116
a,p
873,532
16,893
890,425
Borrowings
a,q
64,243
166
64,409
a,r
-
1,502
1,502
Provisions
a,s
-
1,290
1,290
a,t
1,548
-
1,548
Deferred tax liability
a,u
-
-
Other liabilities
a,v
84,597
(44,191)
40,406
1,033,931
(24,235)
1,009,696
Total liabilities
534
Share capital
a,w
13,960
-
13,960
Share premium
a,x
84,799
-
84,799
Deposit for shares
a,y
18,800
(18,800)
(23,666)
(40,866)
Retained earnings
Other reserves
a,z
(40,300)
Statutory reserve
b,a
6,135
-
1,150
-
SMIES Reserve
Fair value reserve
b,d
-
Capital Reserves
b,e
Regulatory risk reserve
Total equity
(64,532)
6,135
1,150
(4,423)
(4,423)
7,218
18,800
26,018
-
12,255
12,255
68,096
(33,034)
75,362
1,102,027
(57,269)
1,085,058
102
Notes to the reconciliation of equity
a)
IAS 32, 39 and IFRS 7 Fair valuation of financial instruments
Nigerian GAAP investment securities are either classified as short term or long term investments. Short-term investments are investments that
management intends to hold for less than one year. These investments are measured at the lower of cost or net realisable value subsequent to initial
recognition. Long term investments are investments other than short term investments and are carried at cost less impairment. Under IFRS, financial
assets and liabilities are required to be classified as fair value through profit or loss (Held for Trading), fair value through other comprehensive income
(Available for Sale), loans and receivables and held to maturity. Financial instruments are measured based on their classification. The application of fair
value changes and its impact on the income statement or other comprehensive income resulted in a write-down in equity of N4.0 billion at 31 December
2011 (1 January 2011, N1.0 billion).
(b)
Loan Loss Provision
“Under NGAAP, provision on loans is determined using the prudential guideline which prescribes the percentage to be written down as soon as loan is
designated as impaired, depending on whether the status of impairment is doubtful, substandard or lost. A general provision is then calculated as 1% of
all performing loans. Under IFRS, a loan is assessed for impairment if there is objective evidence that impairment has occurred after its initial recognition.
The reporting entity is also required to perform a collective impairment evaluation on all its insignificant loans as well as on its significant but nonimpaired loans. The reporting entity determines by available history the Probability of Defaults (PD) and Loss Giving Default (LGD) by sectors and applies
these ratios on the performing loans at each reporting date.
The Bank assesses for impairment all loans that are due or unpaid for 90 days or more. The estimated cash flows expected from the loans including
the collateral realization and timing are determined and discounted to present value. Application of IFRS to specific impairment calculation decreased
Retained Earnings by N3.4 bn as at 31 December 2011 (N19.1 bn; 1 January 2011).
The application of collective impairment procedures on all its insignificant loans as well as on its significant but non-impaired loans gave rise to a
negative adjustment of N4.1 bn as on 31, December 2011 ( N6.4 bn; 1 January 2011).
Under NGAAP, interest is accrued on Non-performing loans and advances at a default or contractual rate, but such interest is usually suspended and
included as part of specific provision on the loans. Under IFRS, interest is accrued and recognized on impaired loans using effective interest rate. The
recognition of Interest on impaired loans was a positive adjustment in retained earnings at 31 December 2011 of N1.3bn, (1 January 2011, N7.8bn).”
(c)
Employee Benefit - staff Loans
Employees were granted loans at a below market interest rate. Under IFRS, the difference between the rate granted and a market related rate is an
employee benefit, which must be deferred and recognised as an employee expense over the life of the loan. Amortization of prepaid benefits gave rise
to a net debit in equity of N19 m for the year ending 31 December 2011,(1 January 2011, N8 m) was adjusted in equity.
(d)
Deferred Tax Asset
The impact of changes in deferred income tax resulted from timing differences on fair value gains on available for sale financial instruments recognized
under IFRSs. Nominal tax rate of 30% was used in calculating the deferred tax adjustments which also increased the balance sheet carrying amount of
deferred tax assets by same amounts.
e)
Retirement Benefit Obligation
An actuarial valuation of the defined benefit scheme, showed a deficit of N273 million as at 31 December 2011 (N502 m; 01 January 2011). The liability
was not recognised in the Nigerian GAAP financial statements. Under IFRS, a defined benefit obligation must be recognised based on the projected unit
credit method. Actuarial valuation was performed by Alexander Forbes Actuaries using the projected unit credit method of valuation. This gave rise to an
obligation of N1.5 billion as at 31 December 2011 (N502 m; 01 January 2011), when the value of the assets as at the valuation date was compared to
the liability of the scheme.
103
Notes to the reconciliation of Statement of Financial Position
a.a
a.b
a.c
a.d
a.e
a.f
“Under NGAAP, treasury bills (including the portion pledged to third parties), are reported as separate line from investments. Under IFRS, treasury bills
qualify as financial assets and have been properly classified in line with IAS 39 at fair value through other comprehensive income (Available for Sale) and
pledged assets. Treasury bill amounting to N15.3 bn (N12.1 bn; 01 January 2011) was reclassified to Investment securities at fair value through equity
while pledged treasury bills of N7.2 bn ((N8.6bn; 01 January 2011) was reclassified to pledged assets.”
Under NGAAP, bills discounted was reported as separate line from investments on the face of the financial statement. Under IFRS, bills discounted qualify
as financial assets held at fair value through other comprehensive income (Available for Sale) and have been properly classified in line with IAS 39.
As at 1 January 2011, included in Investment Securities is a placement with other banks and discount houses of N175 million. This has been reclassified
to Loans and Advances to Banks under IFRS.
Loan and Advances to Customers includes Loans and advances, Advances under Finance Leases and other facilities. Other Facilities include foreign
currency denominated on-lending facilities. The difference of N5.7bn between the NGAAP and IFRS balances for loans to customers is a result of the
reclassifications, the impact of additional impairment losses, and write-downs in respect of staff loans in order to reflect the correct amortized cost
based on market rate. IFRS requires financial assets carried at amortised cost to be measured using the effective interest rate (EIR) method. The effective
interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument, or where
appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
Advances under finance lease are reported separately in the balance sheet under Nigerian GAAP. Given the size of this portfolio, management has
reclassified the total balance of N6.8 billion as at 31 December 2011 (N5.9 billion at 1 January 2011) from Advances under finance lease to Loans and
Advances to Customers.
“Under IFRS, IAS 39 has four clearly defined categories of financial assets, namely (1) Financial assets ‘at fair value through profit or loss’ [measured
at fair value with fair value gain or loss recognised in profit or loss] (2) Held-to-maturity investments [measured at amortised cost] (3) Loans and
receivables [measured at amortised cost]; and (4) Available-for-sale financial assets [measured at fair value with fair value gain or loss recognised in
other comprehensive income]. Furthermore there are two defined categories of financial liabilities, namely: (1) Financial liabilities ‘at fair value through
profit or loss’ and (2) Other liabilities (measured at amortised cost). Under Nigerian GAAP, investment securities are either classified as short term or long
term investments. Short-term investments are investments that management intends to hold for less than one year. These investments are measured at
the lower of cost or net realisable value subsequent to initial recognition. Long term investments are investments other than short term investments and
are carried at cost less impairment. Based on the classification and measurement criteria under IFRS the following was performed:
Fair value adjustments
The application of IFRS classification and measurement gave rise to the following classification of investments. A fair value adjustment of (N209m) was
recorded on AFS equity adjustments, (N14.3bn) on AFS debt investment adjustments and N511m from fair value adjustment to pledged assets. A fair
value adjustment was recognised on HFT debt security investment of N0 m as at 31 December 2011 (N0 m; 01 January 2011).
Reversal of previously recognised impairment charge
Under IFRS, the fair value changes of available for sale financial instruments are recognized in other comprehensive income and transferred to fair value
reserve in the equity section of the statement of financial position. To appropriately recognise the fair value adjustments, impairment on investment
securities charged under NGAAP had to reverse through retained earnings
Reclassification adjustments
To ensure that the underlying asset are reported at their carrying amount before applying the measurement criteria under IFRS, the respective interest
receivables classified as a component of other asset under NGAAP were reclassified to the respective investment securities. The total of N10.2bn as at
31 December 2011 (N625 m, 01 January 2011) were reclassified to underlying assets. Also pledged assets under repurchase agreement amounting to
N18.6bn as at 31 December 2011 (N17.5bn; 01 January 2011) made up of bonds and treasury bills, which were part of the components of Other assets
under NGAAP, were reclassified as a separate line item as pledged assets on the primary statements. “
104
Notes to the reconciliation of Statement of Financial Position
a.j
a.l
a.m
a.n
a.p
a.q
a.v
b.c
“Under NGAAP, pledged assets (bills and bonds) are either reported as part of other assets or disclosed within the notes of the financial statement. Under
IFRS, pledged assets have been reported as a separate line item on the primary financial statement. Due to the separate disclosure of the pledged items,
a reclassification of N7.1 billion and N11.4 bn in 31 December 2011 (N8.6 bn, and N8.8 bn; 01 January 2011) relating to investment securities - bonds
and Treasury bills respectively was made.”
Under NGAAP computer software was usually reported as part of property plant and equipment. The application of IFRS on 1 January 2011 required that
this be separated. The total amount for computer software of N155m, has been reclassified to Intangible assets. Intangible assets represents the net
book value of computer software being used in the Bank as there were no patents, trademarks or any other form of intangibles on this date.
The implications of application of IFRS to loan losses provisioning and employee benefits increased Retained earnings by N3.4 bn on 31 December 2011
(1 January 2011, N19.1 bn). Nominal tax rate of 30% was used in calculating the deferred tax adjustments which also increased the balance sheet
carrying amount of deferred tax assets by same amounts.
The change in other assets on application of IFRS is accounted for by the reclassification of accrued interest receivable to the underlying assets in line with
IAS 39 before measurement, as well as the recognition of additional staff benefit arising from restating staff loans carrying amount using the market
rate. The recognized embedded prepaid staff benefits are carried in other asset, and amortized over the remaining expected life of the loans. In addition
to this pledged debt equities previous reporting as a component under other assets under NGAAP has been classified under pledged bonds a separate
financial statement line item on the primary statement for IFRS reporting purpose.
Included in other liabilities are Customer’s cash collateral due to Banks amounting to N0 m as at 31 December 2011 (N710m; 01 January 2011). This was
reclassified from other liabilities to deposit from Banks for proper presentation under IFRS. N16.8 billion as at 31 December 2011 (N2.2 billion; 01 January
2011) relating to customers’ deposit for letters of credit which was reclassified to deposits from customers under IFRS.
“Under NGAAP, interest payable was mapped to other liabilities. In applying the effective interest method, IFRS requires a financial instrument carried at
amortised cost to be measured at its net carrying amount. The application of the effective interest method resulted in a reclassification of N166m as at
31 December 2011 (N16m. 01 January 2011) from other liabilities to Borrowings.”
The Bank accounted for interest payable and unearned income on its financial liabilities and assets as a separate component of other liabilities. IFRS
requires a financial instrument carried at amortised cost to be measured at its net carrying amount and available for sale financial assets at fair value
through equity. The change in other liabilities on application of IFRS is accounted for by the reclassification of unearned income on treasury bills and
bonds to the underlying assets in line with IAS 39 of N24.2bn in 31 December 2011 (N1.9bn; 01 January 2011). Other liability balance of N16 m relating
to interest payable on borrowings was reclassified to the underlying liability account in order to measure this at amortized cost. Also included in other
liabilities are Customer cash collateral due to Banks amounting to N0 m as at 31 December 2011 (N710m; 01 January 2011). This was reclassified from
other liabilities to deposit from Banks for proper presentation under IFRS.
reserve in the equity section of the statement of financial position. This classification was not required under NGAAP. The changes in retained earnings
under IFRS arose from the reversal of impairment charges on loans and advances to customers and on financial assets recognised under NGAAP. The
respective financial assets have subsequently been measured in line with IAS 39 and appropriate adjustments passed. See explanations on differences
arising from measurement above.
105
Notes to the reconciliation of Statement of comprehensive Income
c.a
c.b
c.c
c.d
The application of effective interest rate to loans and advances resulted in reclassification from fee income to interest income. In addition, additional
interest raised on staff loans on application of market rate, as well as recognition of interest on impaired loans in line with IFRS gave rise to an increase in
interest income.
Impairment charges on credit losses and investments decreased due to the application of the incurred loss model and the collective impairment on
performing loans and reversal of impairment charge on TBPIC.
Employee benefit expense adjustments relate to amortization of staff benefits imbedded in staff loans granted at concessionary rates. The prepaid staff
benefits are usually held as other assets in the statement of financial position, but amortized systematically to income as part of personnel expenses.
reserve in the equity section of the statement of financial position.
Notes to the Statement of cashflow
(a)
(b)
(c)
The cash flow statement has been prepared under IAS 7, using the indirect method.
Under Nigerian GAAP, the Bank classifies cash flows relating from the acquisition or sale (and redemption) of investment securities as investing cash
flows. Under IFRS, the cash flows from trading are considered part of the principal revenue producing activities of the Bank, and are therefore classified
as operating cash flows. Cash flows associated with non-trading debt and equity securities at fair value continue to be classified as investing activities.
Under IFRS, only call deposits and other short-term investments that are readily convertible to a known amount of cash and subject to insignificant risks
of changes in value due to the short maturities thereof (three months or less from the date of acquisition) are classified as cash and cash equivalents.
Under Nigerian GAAP, all treasury bills are classified as cash and cash equivalents. Under IFRS, only treasury bills with a maturity of three months or less
are classified as cash and cash equivalents in the consolidated cash flow statements under IFRS
106
Statement of value added
2012
N'million
Gross income
Interest paid
2011
%
N'million
158,764
68,155
(45,110)
(21,527)
113,654
46,628
(12,342)
15,260
Bought-in materials and services
(34,685)
(20,682)
Value added
%
66,627
100
41,206
100
46,957
70
16,970
41
2,578
4
1,321
3
9,286
14
3,571
9
7,805
12
19,344
47
66,627
100
41,206
100
Distribution
Employees
-
Salaries and benefits
Government
-
Income tax
Retained in the Bank
-
Asset replacement (depreciation & amortisation)
- Expansion (transfers to reserves)
107
Five year financial Summary
2012
2011
2010
2009
2008
N’million
N’million
N’million
N’million
N’million
IFRS
N-GAAP
Assets:
Cash and balances with the central bank
112,323
86,919
19,437
9,524
-
-
-
15,116
21,247
120,078
116,597
100,514
73,490
162,467
546,873
410,150
225,369
183,719
144,917
-
-
-
6,000
8,902
23,394
32,812
6,821
-
-
228,576
249,272
26,036
15,387
22,155
Treasury bills and other eligible bills
Investment Securities: available-for-sale
Investment Securities: loans and receivables
Pledged assets
Property and equipment
Intangible assets
Deferred income tax asset
Other assets
18,768
78,116
74,159
3,949
-
-
109,334
18,600
17,487
-
-
2,744
-
-
-
-
59,387
67,131
19,440
21,382
18,818
103
820
155
-
-
6,005
4,709
2,729
1,073
-
38,382
23,889
22,041
29,971
35,192
1,325,315
1,085,058
443,978
355,662
432,466
Financed by:
Share capital
9,241
13,960
6,940
3,609
3,609
Share premium
115,961
84,799
54,119
11,917
11,917
Retained earnings
(19,705)
(64,532)
(11,188)
(2,861)
1,727
48,131
41,135
15,676
14,503
14,503
1,043,213
890,425
342,379
243,831
310,714
21,489
10,116
710
17,147
23,913
-
-
-
46,366
45,070
58,883
64,409
3,776
4,576
3,269
-
1,502
502
-
-
Provisions
1,279
1,290
18
-
-
Current income tax
1,581
1,548
329
213
752
-
-
-
-
283 -
45,242
40,406
30,717
16,361
16,709
1,325,315
1,085,058
443,978
355,662
432,466
Acceptances and guarantees
163,260
199,417
82,079
93,723
173,366
Gross earnings
158,764
68,155
58,313
59,864
Profit /(Loss) before taxation
5,227
18,023
2,120
(5,944)
(898)
Income tax
2,578
1,321
1,356
893
Profit/(Loss) after taxation
7,805
19,344
Other reserves
Deposits from banks
Deposit for shares
Borrowings
Deferred income tax liabilities
Other liabilities
IFRS
N-GAAP
(501)
1,619
(4,588)
55,156
(5)
Earnings/(Loss) per share (Basic)
42k
69k
12k
(1k)
(0k)
Number of business offices
511
578
256
256
240
108
Holding company and its subsidiaries
Headquarters : Ecobank Transnational
Incorporated
B.P. 3261, Lomé – Togo
Tel: (228) 22 21 03 03 / 22 21 31 68
Fax:(228) 22 21 51 19
1. Benin
Rue du Gouverneur Bayol
01 B.P. 1280, RP Cotonou – Bénin
Tél: (229) 21 31 30 69 / 21 31 40 23
Fax:(229) 21 31 33 85
2. Burkina Faso
49, Rue de l’Hôtel de Ville
01 B.P. 145
Ouagadougou 01–Burkina Faso
Tel: (226) 50 33 33 33 / 50 49 64 00
Fax:(226) 50 31 89 81
3. Burundi
6, Rue de la Science
B.P. 270, Bujumbura – Burundi
Tel: (257) 22 20 8100
(257) 22 20 8200
(257) 22 20 8299
Fax:(257) 22 22 5437
4. Chad
Avenue Charles de Gaulle
B.P. 87, N’Djaména – Tchad
Tel: (235) 2252 43 14 / 21
Fax:(235) 2252 23 45
5. Cameroon
Boulevard de la Liberté
B.P. 582, Douala – Cameroun
Tel: (237) 33 43 82 51
(237) 33 43 84 88 – 89
Fax:(237) 33 43 86 09
6. Cape Verde
Avenida Cidade de Lisboa
C.P. 374 /c Praia
Santiago – Cabo Verde
Tel :(238) 260 36 60
Fax:(238) 261 10 90
7. Central African Republic
Place de la République
B.P. 910 Bangui – République
Centrafricaine
Tel: (236) 21 61 00 42
Fax:(236) 21 61 61 36
12. Gabon
214, Avenue Bouët
9 Étages, Montagne Sainte
B.P. 12111
Libreville – Gabon
Tel: (241) 01 76 20 71 / 01 76 20 73
Fax:(241) 01 76 20 75
13. Gambia
42 Kairaba Avenue
P.O. Box 3466
Serrekunda – The Gambia
Tel :(220) 439 90 31 – 33
Fax:(220) 439 90 34
14. Ghana
19 Seventh Avenue, Ridge West
P.O. Box AN 16746
Accra North – Ghana
Tel :(233) 302 68 11 46/8
Fax:(233) 302 68 04 28/37
15. Guinea
Immeuble Al Iman
Avenue de la République
B.P. 5687
Conakry – Guinée
Tel: (224) 63 70 14 34
(224) 63 70 14 35
Fax:+224 30 45 42 41
16. Guinea-Bissau
Avenue Amilcar Cabral
B.P. 126, Bissau – Guinée-Bissau
Tel: (245) 320 73 60 – 61
Fax:(245) 320 73 63
17. Kenya
Ecobank Towers
Muindi Mbingu Street
P.O. Box 49584, Code 00100
Nairobi – Kenya
Tel :(254) 20 288 3000
/0719 098 000
Fax:(254) 20 224 9670
18. Liberia
Ashmun and Randall Street
P.O. Box 4825
1000 Monrovia 10 – Liberia
Tel :(231) 886-74-76-93
/ 886 -97- 44- 94
Fax:(231) 701 22 90
23. Rwanda
Plot 314, Avenue de la Paix
P.O. Box 3268, Kigali – Rwanda
Tel :(250) 788 16 10 00
Fax:(250) 252 50132
24. São Tomé and Príncipe
Edifício HB, Travessa do Pelourinho
C.P. 316
São Tomé – São Tomé e Príncipe
Tel: (239) 222 21 41 / 222 50 02
Fax:(239) 222 26 72
25. Senegal
Km 5 Avenue Cheikh Anta DIOP
B.P. 9095, Centre Douanes
Dakar – Sénégal
Tel: (221) 33 859 99 99
Fax:(221) 33 859 99 98
26. Sierra Leone
7 Lightfoot Boston Street
P.O. Box 1007
Freetown – Sierra Leone
Tel :(232) 22 221 704 / 227 801
Fax:(232) 22 290 450
27. Tanzania
Karimjee Jivanjee Building
Plot Nº 19, Sokoine Drive
P.O. Box 20500
Dar es Salaam – Tanzania
Tel : (255) 22 213 7447
(255) 22 212 5592
(255) 22 212 5594
Fax:(255) 22 213 7446
28. Togo
20, Avenue Sylvanus Olympio
B.P. 3302
Lomé – Togo
Tel: (228) 22 21 72 14
Fax:(228) 22 21 42 37
29. Uganda
Plot 4, Parliament Avenue
P.O. Box 7368
Kampala – Uganda
Tel :(256) 417 700 100
Fax:(256) 312 266 079
30. Zambia
22768 Thabo Mbeki Road
P.O. Box 30705
19. Malawi
Lusaka – Zambia
8. Congo
Ecobank House, Corner Victoria Avenue Tel :(260) 211 250 056 – 7
Immeuble de l’ARC, 3ème étage
and Henderson Street, Private Bag
(260) 211 250 202 – 4
Avenue du Camp
389,
(260) 211 367 390
B.P. 2485, Brazzaville – Congo
Chichiri, Blantyre 3 – Malawi
Fax:+260 211 250 171
Tel: (242) 06 621 08 08
Tel :(265) 01 822 099 / 808 / 681
/ 05 778 79 08
31. Zimbabwe
Fax: (265) 01 820 583
Block A, Sam Levy’s Office Park, 2
9. Côte d’Ivoire
20. Mali
Piers Road
Immeuble Alliance
Place de la Nation
P.O. Box BW1464, Borrowdale
Avenue Terrasson de Fougères
Quartier du Fleuve
Harare – Zimbabwe
01 B.P. 4107– Abidjan 01
B.P. E1272
Tel :(263–4) 851644-9
Côte d’Ivoire
Bamako – Mali
Fax:(263 – 4) 852632–851630–9
Tel: (225) 20 31 92 00
Tel: (223) 20 70 06 00
Toll free : 08003 2 800 000
Fax:(225) 20 21 88 16
Fax:(223) 20 23 33 05
32. EBI SA Groupe Ecobank
10. Democratic Republic of the Congo 21. Niger
Les Collines de l’Arche
47, Avenue Ngongo Lutete
Angle Boulevard de la Liberté
Immeuble Concorde F
Gombe –RD Congo
et Rue des Bâtisseurs
76 route de la Demi-Lune
B.P. 7515, Kinshasa
B.P. :13804, Niamey – Niger
92057 Paris La Défense Cedex France
Tel: (243) 99 60 16 000
Tel: (227) 20 73 10 01 – 83
Tel: (33) 1 70 92 21 00
Fax:(243) 99 60 17 070
Fax:(227) 20 73 72 03 – 04
Fax: (33) 1 70 92 20 90
11. Equatorial Guinea
22. Nigeria
33. EBI SA Representative Office
Avenida de la Independencia
2nd Floor, 20 Old Broad Street
APDO.268, Malabo – Républica de
P.O. : Box 72688, Victoria Island
London EC2N 1DP, United Kingdom
Guinea Ecuatorial
Lagos – Nigeria
Tel: +44 (0) 203 582 8820
Tel: (240) 333 098 271 / 555 300 203 Tel :(234) 1 2710391–5
Fax:+44 (0)207 382 0671
Fax:(234) 1 2710111
34. Beijing
Representative Office
Suite 611, Taikang International Tower
2 Wudinghou, Financial Street
Xicheng District, 100033
Beijing, China
Tel :(8610) 66 29 00 98
Fax:(8610) 66 29 00 98
35. Johannesburg
4 Sandown Valley Crescent
4th Floor, Sandton 2196
Johannesburg – South Africa
Tel :(27) 11 783 6197 - 6431 / 6391
Fax:(27) 11 783 6852
36. Dubai
Level 26d, Jumeirah Emirates Towers
Shaikh Zayed Road, P.O. Box: 29926
Dubai – UAE
Tel :(971) 4 327 6996
Fax:(971) 4 327 6990
37. Luanda
Rua Joaquim Kapango Nº31
Ingombota-Luanda
C.P 25, Luanda – Angola
Tel :(244) 938 910 345
38. Ecobank Development
Corporation (EDC)
B.P. 3261, Lomé –Togo
Tel: (233) 21 25 17 23
Fax:(233) 21 25 17 34
39. EDC Investment Corporation
Immeuble Alliance, 4ème étage
01 B.P. 4107–Abidjan 01
Côte d’Ivoire
Tel: (225) 20 21 10 44 / 20 31 92 24
/20 21 50 00
Fax:(225) 20 21 10 46
40. EDC Stockbrokers Limited
5 Second Ridge Link, North Ridge
P.O. Box 16746, Accra North – Ghana
Tel : (233) 21 25 17 23 / 24
Fax: (233) 21 25 17 20
41. EDC Securities Limited
P.O. Box 72688, Victoria Island
Lagos – Nigeria
Tel : (234) 1 761 3833 / 761 3703
Fax: (234) 1 271 4860
42. EDC Asset Management
Immeuble Alliance, 4ème étage
01 B.P. 4107–Abidjan 01
Côte d’Ivoire
Tel: (225) 20 22 26 68
43. eProcess International SA
B.P. 4385, Lomé –Togo
Tel: (228) 22 22 23 70
Fax:(228) 22 22 24 34
49, Rue de l’HôTél. de Ville
01 B.P. 145
Ouagadougou 01 – Burkina Faso
RC No: 89773
P.O. : Box 72688, Victoria Island - Lagos – Nigeria
ecobank.com

The future is pan-African Ecobank Nigeria Limited Annual Report 2012

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