Ecobank Transnational International (ETI) has inject Sh4.3 billion ($47 million) into its loss incurring Kenyan subsidiary to support its growth plans.
Similar cash injections have happened in the past as the Togo-based ETI to fund expansion, with the hope that rolling out new branches and increasing lending capacity will change the bank’s fortunes. With the bank starting to show some improvement, ETI intends to build on this to ensure the bank returns to profitability.
“To support the bank’s business growth objectives in Kenya, the parent company injected an additional capital investment of Sh4.325 billion in November 2014,” said Ecobank Kenya chief executive Ehouman Kassi.
The bank recorded a 59 percent improvement on its bottom line, although it still lost Sh320 million ($3.5 million) last year. The lender’s improvement rested solely on the 60 percent growth of non-interest income to Sh1.2 billion. Kassi attributed this to an increase in trade finance incomes and loan related fees.
Net interest income also jumped 10 percent to Sh997 as loan book and deposit base expanded. Loan book increased to Sh23 billion from Sh18.5 billion while customer savings rose to Sh32.4 billion from Sh25.3 billion.
ETI, one of Africa’s largest banking groups, with operation in 36 African countries entered Kenya in 2008 when it acquired the East Africa Building Society.
