ECOBANK Pays Dividend To SSNIT

Ecobank Ghana has accredited the accounts of Social Security and National Insurance Trust (SSNIT) with a total amount of GH¢11.293 million as dividend for its shares for the year 2011.

In mid 2011, SSNIT, which was the largest shareholder of TTB, transferred its 61 percent shares to ECOBANK, the pan-African bank at a price of GH¢12.62 per share. The transaction was fiercely rejected by a section of the public as some workers feared losing their jobs as a result of the merger.

However, Kwame Peprah, Board Chairman of SSNIT, speaking in Accra a presentation by a high-powered delegation from ECOBANK, said “the decision is yielding good returns on our investment.”

He said the move to transfer the shares of SSNIT to Ecobank Transnational Incorporated (ETI) was part of SSNIT’s resolution to invest its assets properly.

It was also part of restructuring and consolidation of SSNIT’s investment portfolios to ensure that it obtains maximum returns on its investments.

SSNIT already had shares in Ecobank Ghana Limited and ETI, a pan-African Bank headquartered in Togo, the majority shareholder of Ecobank Ghana.

The decision was also in line with the Bank of Ghana’s order to all banks operating in the country to up their minimum capital requirement.

SSNIT had to inject fresh capital of GH¢40.9 million into TTB together with contributions from other shareholders to achieve the minimum capital requirement. Lare Van Dosoo, Board Chairman of ECOBANK Ghana said, “I think that the merger of TTB and ECOBANK would set the template for future mergers in Ghana. Our economy is growing and we need such mergers.”

Ghana, he said “has the capacity for more of such business transaction” and lauded the historic merger of ECOBANK and TTB in the banking sector.

“SSNIT saw it fit. We are working hard. Our staff are energized and we look forward to more of such transactions with SSNIT.”

SSNIT, he said, is currently the second largest shareholder of ECOBANK Ghana with 16 percent shares. Before the merger, SSNIT had 0.9 percent shares in ECOBANK and the transaction helped SSNIT to swap its TTB shares for additional shares in EcoBank.

“I believe this is the largest dividend SSNIT is receiving from its investments in the banking sector but this is just the beginning.”

Mr. Van Dosoo stated that the bank could only pay higher dividends when it performs well “and we want to do just that. Our aim is to be the number one bank”

ECOBANK has over 70 branches across the nation and 150 ATMs in different locations with presence in 35 countries.