There is increasing trade among African countries says Jubril Aku, Managing Director/Chief Executive, Ecobank Nigeria PLC.

“We have seen increasing trade link between African countries mainly within regional corridors like the West African bloc and the East African bloc. We also have also seen some trading between the blocs”, he told Financial journalists in Lagos.

He said that though most of the regional trade is in commodities like cattle, grains, there have also been increases in government to government business transactions. He said for example there have been increased business between Nigerian government and African governments with refineries and crude oil being exchanged for refined petroleum products. He said there is also increased trade in fast moving consumer products like cars, as well as tourism.

We have also seen increased investment flows across the regions particularly in the area of education for establishment of schools or to pay school fees.

He said for example about $68 billion was paid as school fees across the continent by Africans last year and this is besides remittances by Africans working in other African countries.

He said the mission of the bank is to dominate this booming regional trade. That is why we are present and operate in 31 African countries and have designed products aimed at promoting financial integration in the region.

“We want to be known for not only integrity, as a bank that is transparent in its business dealings, but we also want to be known for dominance of regional trade,” he said.

“We want to be known as the dominant bank in regional trade, in addition to being known for integrity”, said Jubril Aku.

Meanwhile, the bank has bounced back to profitability in its operating year ended 2010, with profit-before-tax rising to N2.12 billion from N4.59 billion loss recorded in the previous operating year.

Though gross earnings fell by 2.6 per cent, operating income rose by 22.8 per cent. The bank also grew its balance sheet size to N454 billion from N355 billion while its loan portfolio rose by 18 per cent.

Shareholders however would have to wait before enjoying the improved fortunes of the bank through dividend.  “The time of recovery is not the time to give away profit but to grow capital. So for now, the board favours capital growth,” he said.

Although Ecobank through its parent company, Ecobank Transnational is present in 31 African countries, it is still seeking opportunities to grow its business to be among the dominant banks.  The quest for growth prompted the bank to assume the private sector deposits and branches of three of the 14 banks that could not make the December 31st 2006 deadline for the N25 billion minimum capital base, which increased its branch network to over 200 from 54. To consolidate on this, the bank bidded for Union Bank but its bid was not successful.

This notwithstanding, the bank is still  open to opportunities to grow through business combination.
“We want to grow but we are not desperate. Nigeria is a large market but size and scale are important here. So we are interested in any business combination that would give us scale.  We are ready to discuss business combination with any bank if it has benefits and value for our shareholders,” he said.