Ecobank Ghana has achieved Bank of Ghana’s GH¢400 million minimum capital requirement, after its shareholders voted for the bank to transfer GH¢190 million from income surplus to stated capital.
By this, the bank reached a capital requirement of GH¢416 million since its existing stated capital was GH¢226 million, this was disclosed at bank’s Annual General Meeting in Accra.
“Ecobank Ghana, currently has a stated capital of GHS226 million and a total shareholder funds of one billion. To enable us meet this new requirement, without raising new capital, we will need to recapitalize our retained earnings, out of which dividends are normally paid as stated capital,” said Dan Sackey, Managing Director of Ecobank Ghana.
As a result of the transfer, the bank did not declare any dividend for shareholders as directed by the Bank of Ghana this year, that no bank should pay dividend to help them meet the requirement.
Touching on the bank’s financials, Mr. Sackey stated that, despite the challenging environment, the bank recorded total revenue of GH¢1.1 billion cedis, keeping the bank as a leader in revenue terms, even though the figure was lower by 7 percent compared to 2016.
“The slight drop in revenue was as a result of the declining interest rates environment driven in turn by the successful implementation of the TSA, impacting our net interest income,” he added.