Premier takes new dimension

of its parent Ecobank Transnational Incorporated.
Group chairman, Mr Sengiyampula Mlambo said an application for the licence conversion from a merchant bank has been lodged with the Reserve Bank of Zimbabwe.
Commercial banking is generally accessible to anyone for basic banking needs, whereas merchant banks serve mainly large companies and wealthy individuals.
“Significant progress has been made in transforming Premier Bank into a fully-fledged Ecobank subsidiary, starting with staff training and harmonisation of systems and procedures,” he said.
Zimbabwe has 29 banks, of which 19 are commercial banks, three merchant banks, four building societies, one microfinance bank and one statutory bank.
Before the takeover by Ecobank, Premier’s business model was corporate, private and investment banking.
Incorporated in Lome, Togo, Ecobank has footprints in 30 African countries and is also represented in France through its affiliate EB1S.A in Paris.
Ecobank, listed on the stock exchange in Accra, Lagos and the West African Economic and Monetary Union, is owned by more than 180 000 local and international institutional and individual shareholders.
Shareholders’ funds are estimated around US$1,1 billion and total assets of about US$9,1 billion.
Ecobank is coming on a market currently sitting on US$2,6 billion in deposits. Management said the bank stands ready to provide the Zimbabwean subsidiary with adequate financial and human capital to ensure its return to profitability.
Ecobank is expected to leverage on its existence in 30 African countries to source funding for the Zimbabwean market faced with liquidity challenges.
“We are comfortable that with its new identity brand and an array of exciting products to be introduced, the bank is well-positioned for growth in years ahead.
“We hope this will translate into more and better financial solutions,” added Mr Mlambo.
The re-branding of Premier to Ecobank Zimbabwe is progressing. The finance group, formed in 2002, has continued to grow, attracting foreign investors.
In 2009, the bank attracted a consortium of foreign investors led by African Development Corporation in a US$6 million transaction.
Late last year, Ecobank came in as a significant and single largest shareholder of Premier in a US$10 million deal.
For the financial period ended December 31 2010, the group posted a loss after tax of US$5,6 million, with total operating costs standing at US$1,8 million representing a decline of 65 percent compared with the previous year.
Operating costs for the group were at US$9,8 million, comprising staff costs of US$4,9 million and administrative costs of US$4,9 million.
The slowdown in business has been attributed to retrenchments, the delayed capitalisation of the bank and market conditions.
Premier’s loan book closed the year
at US$26,9 million, compared to with $ US$10,6 million and deposits closed at US$41,3 million.