Ecobank expects East African units to swing into profit this year.

By bne IntelliNews June 20, 2012
Pan-African banking group Ecobank Group expects its loss making East African business to turn into profit this year, Business Daily reported. Ecobanks East African operations, which include Kenya, Tanzania, Uganda, Rwanda and Burundi, posted a pre-tax loss of USD 3.5mn for 2011, compared to a loss of USD 3mn in 2010, as the bank still suffers from high entry costs. Combined revenues for the East Africa region grew 14% to USD 57.2mn with Burundi, Uganda and Tanzania providing higher margins and loan growth, while results from Rwanda and Kenya remained flat due to difficult business environments. Net interest income rose 4%, dented by a 31% drop in Kenya. Ecobnak Group expects a turnaround in Kenya and Rwanda to improve significantly its performance this year. Togo-based Ecobank Group, owned by Ecobank Transnational Incorporated (ETI), has over 1,100 branches in 32 African countries. ETI is also represented in France through its affiliate EBI in Paris and has representative office in Dubai and London.

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