Ecobank Ghana Limited has overtaken Ghana Commercial Bank (GCB) as the biggest bank in the country in terms of assets and profits following the approval of the takeover of The Trust Bank (TTB) by shareholders of the bank at an Extraordinary General Meeting (EGM) on Friday, January 20.
The bank currently has a total asset base of GH¢2,366,571 as against GCB’s GH¢2,240,478 while the combined pre-tax for June 2011 performance indicator was GH¢63.738 million as against the profit before tax of GH¢51.733 million for GCB.
Standard Chartered Bank, Barclays Bank Ghana and Stanbic Bank Ghana were ranked 3rd, 4th and 5th biggest banks respectively in terms of assets and market share.
The shareholders also gave the bank go-ahead to swap shares with Ecobank Transnational Incorporated (ETI), parent company of Ecobank Ghana in TTB for 63,100,000 new shares of the company.
This will pave way for the listing of the shares on the Ghana Stock Exchange (GCB) after the approval of Securities and Regulatory Commission.
A legal, financial and operational due diligence on TTB and the valuation and pricing of TTB was completed before the EGM.
Commenting on the acquisition of TTB at the EGM, Chairman of Ecobank Ghana Limited, Lionel Van Lare Dorsoo, said the merger will create a bank that will provide world-class banking services and products to all customers including individuals, Small and Medium-scale Enterprises (SMEs), local firms, multinationals, government and government-related businesses.
“The decision is supported by the common interest of TTB’s shareholders and the group. Both shareholders share the strategic logic of the proposed merger, namely to create a stronger bank which is part of a pan-African Bank capable of meeting the challenges of our fast growing and expanding economy,” said Mr. Dorsoo.
On financial benefits, he told shareholders that Ecobank and TTB merger will create a bigger balance sheet and thereby strengthen the capacity of the bank.
He added that merged bank will be positioned as a market leader in both retail and banking services.
“The merger of your company and TTB will create a bigger balance sheet and thereby strengthen the capacity of your bank,” he explained.
The Ecobank Group presently has total assets in excess of $18 billion and over 1,000 branches across 32 African countries including South Africa with international offices in Paris, London and Dubai.
Source: Charles Nixon Yeboah/Daily Guide
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