East African Business Week

KAMPALA, UGANDA - Ecobank Uganda a subsidiary of Ecobank Transnational Inc, expects to break even in the third year of operation after striking losses of Ugs11b ($4.4m) and Ugs6b ($2.4m) in their first two years of operation, the managing director told East African Business Week.
Mr. Dele Alabi assured that the bank hitting losses for two consecutive years of operation shouldn't worry customers.
"It's true that for the last two years we have made losses but this is common to any start up bank or even other businesses," he said. "The issue is we're now focused to ensure that we break even this year. This is uncommon in many start up banks in the world to break even in three years unless the bank started through acquisition and the acquired bank was performing well," Alabi said in an interview recently.
The bank's financial statements released earlier in the year had scared customers as it posted a $2.4m loss before and after tax. The bank had scored a loss in 2009 as well of $4.4m after tax and $5.6m (Ugs13.9b) before tax.
Ecobank (Uganda) is a commercial bank in Uganda. The bank began operations in January 2009 as a full-service bank,  providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organizations, medium, small and micro businesses and individuals.
It is a member of Ecobank, the leading independent pan-African bank, headquartered in Lomé, Togo with affiliates in West Africa, Central Africa and East Africa.
Ecobank, which was established in 1985, has grown to a network of over 600 branches, employing over 10,000 people, with offices in 29 countries.
Alabi was optimistic that the balance sheet footing that increased by 43%, from Ugs63.4b ($25.4m) to Ugs90.8b ($36.2m), the customer deposit base that amounted to Ugs68b ($27.2m) representing a growth of 49% compared to Ugs45.5b ($18.2m) recorded in 2009, is a huge turn around for the bank's recovery.
"Loans and advances grew by 97%, from Ugshs23.5b ($9.4m) to Ugs46.3b ($18.5m) in 2010. Our gross earnings increased to Ugs13.6b ($5.4m) representing over 224% growth. We're confident that we will start making profits," he stressed.
Ecobank has eight branches in Uganda, with intentions to set up other branches in Kampala and Amuru in a northern Uganda district.