The introduction of a new branch model, called Ecobank Xpress, has allowed the bank to tap into deposits in smaller locations. The model is more flexible than traditional ‘bricks and mortar’-style branch networks in that it is highly mobile. The bank has also snared a large share of deposits from government and corporate employees through the use of its direct sales agents. It now has 24 branches in Benin, up from 15 in 2005, and more than 100,000 customers, up from 35,000 in 2005.
In 2007, it pioneered loans to professional associations and introduced overdraft limits, bank cards and SMS banking. As a result, its asset base grew by 35% in 2007. This means that the bank’s assets have grown by 62% since 2005. Return on equity increased two percentage points from 2006 to 16%.
Despite the increase in assets and loans, the bank experienced a drop in its non-performing-loan ratio from 14% in 2006 to 10% in 2007. However, the bank will need to watch its costs. Ecobank Benin’s cost-to-income ratio is high at 68%, which is up from 62% last year.
