Qatar National Bank Buys AMCON’s Stake in Ecobank

Ecobank Transnational Incorporated (ETI) yesterday announced the acquisition of 12.5 per cent minority stake in the bank by Doha-based Qatar National Bank (QNB). The transaction was done through QNB’s purchase of both ordinary and convertible preference shares of Ecobank. QNB, according to a notice from the bank, bought the shares from the Asset Management Corporation of Nigeria (AMCON) on the Nigerian Stock Exchange (NSE).

QNB bought 1.77 billion Ecobank ordinary shares and 732.3 million preferred shares, valued at N35.6 billion at N17.01 per share, according to a statement by the NSE. “Following the transaction, Ecobank is discussing a strategic partnership with QNB, which will enable the two banks to forge business relationships of mutual interest to their respective customers,” it explained.

ETI Group Chief Executive Officer, Albert Essien said: “Ecobank is the bank with the largest footprint in sub-Saharan Africa. This strategic link with QNB, one of the world’s strongest banks, will enhance Ecobank’s reach in North Africa and the Gulf.” Ecobank already has a strong strategic partnership with South African banking giant Nedbank, which makes it a dominant player in Middle Africa and South Africa. The deal is expected to enhance Ecobank’s position as a Pan-African Bank.

QNB operates in 26 countries and three continents. It has a significant trading presence in Africa with branches, subsidiaries and associates operating in Algeria, Egypt, Libya, Mauritania, South Sudan, Sudan and Tunisia. QNB which is expanding abroad as domestic competition in its home market of two million people reduces the profitability of lending. The Qatari lender, which operates in 26 countries, bought 97 percent of Egypt’s Qatar National Bank Alahly for $2.45 billion last year.

It was recognised as “the Best Bank in the Middle East” by Euromoney Magazine and was voted as “one of the top 50 Safest Banks in the world” by Global Finance Magazine in 2013. On the other hand, Ecobank is presently one of the top three banks (by assets) in 14 of the 36 African countries where it is present. As of June 2014, the bank had $23.4 billion total assets and generated $255 million of profit before tax (for the 6 months to 30 June 2014).

It operates across its unique network of 1,241 branches, 2,500 automated teller machines and 16,245 point of service terminals servicing over 10.8 million customers. With 20,114 employees, Ecobank is the largest employer in the financial sector industry in Middle Africa. “This is creating future growth options,” the head of equity research at Arqaam Capital in Dubai, Jaap Meijer told Bloomberg in an interview. QNB is “building on their Middle East and Africa platform. Ecobank is the only one that gives you a platform in many countries.”