Qatar National Bank buys 11% stake in Ecobank

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By Alex C

Qatar National Bank (QNB) has acquired a further 11 percent stake in pan-African lender Ecobank Transnational Incorporated in a deal worth $283 million, the Qatari lender said in a statement on Monday. QNB acquired 2.048 billion ordinary shares using its existing resources to take its total holding in the bank to 23.5 percent, the statement said.

Monday’s purchase comes after it acquired a 12.5 percent stake in Ecobank Transnational Incorporated which it bought shares from the Asset Management Corporation of Nigeria (AMCON) on the Nigerian Stock Exchange (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.

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. This will enhance Ecobank’s position as the 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. It was recognised as “The Best Bank in The Middle East” by  Euromoney Magazine and was voted “One of the Top 50 Safest Banks in the World” by Global  Finance Magazine in 2013.

Ecobank today is one of the top three banks (by assets) in 14 of the 36 African countries where it is present. As of June 2014, it had $23.4billion of total assets and generated $255million 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.

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