Liberia Cover:Mise en page 1

18/03/09

9:38

Page 1

ECOBANK LIBERIA

ANNUAL REPORT 2008

ECOBANK LIBERIA ASHMUN & RANDALL STREET - P.O. BOX 4825 1000 MONROVIA 10 - LIBERIA PHONE: (231) 727 72 77 / 697 44 94-6 - FAX: (231) 701 22 90 EMAIL: ECOBANKLR@ECOBANK.COM - WWW.ECOBANK.COM

Liberia Cover:Mise en page 1

18/03/09

9:38

Page 3

HOLDING COMPANY AND AFFILIATES

GROUP OFFICE (ECOBANK TRANSNATIONAL INCORPORATED): 2, Avenue Sylvanus Olympio - BP 3261 - Lom (TOGO) - Phone: (228) 221 03 03 / 221 31 68 - Fax: (228) 221 51 19 BENIN Rue du Gouverneur Bayol 01 B.P. 1280 - Cotonou - BNIN Phone: (229) 21 31 30 69 / 21 31 40 23 Fax: (229) 21 31 33 85 BURKINA-FASO 633, Rue Ilboudo Waogyand 01 B.P. 145 - Ouagadougou 01 BURKINA-FASO Phone: (226) 50 328 328 Fax: (226) 50 318 981 BURUNDI 6, rue de la Science B.P. 270 -Bujumbura - BURUNDI Phone: (257) 22 22 63 51 Fax: (257) 22 22 54 37 CAMEROON Boulevard de la Libert B.P. 582 - Douala - CAMEROUN Phone: (237) 33 43 82 51-53 (237) 33 43 84 88 / 89 Fax: (237) 33 43 86 09 CENTRAL AFRICAN REPUBLIC Place de la Rpublique -B.P. 910 Bangui - RPUBLIQUE CENTRAFRICAINE Phone: (236) 21 61 00 42 Fax: (236) 21 61 61 36 CHAD Avenue Charles de Gaulle - B.P. 87 N'Djamena - TCHAD Phone: (235) 252 43 14 / 252 43 21 Fax: (235) 253 23 45 CONGO Rond point de la coupole B.P. 2485 Brazzaville - CONGO Phone: (242) 621 09 09 / 622 01 01 (242) 569 54 54 COTE DIVOIRE Immeuble Alliance Avenue Terrasson de Fougres 01 B.P. 4107 - Abidjan 01 CTE DIVOIRE Phone: (225) 20 31 92 00 (225) 20 21 10 41 Fax: (225) 20 21 88 16 DEMOCRATIC REPUBLIC OF CONGO Immeuble Future Tower 3642 Blvd du 30 juin - B.P. 7515 Kinshasa - Gombe - RD CONGO Phone: (243) 99 60 16 000 Fax: (243) 99 60 17 070 THE GAMBIA 42 Kairaba Avenue - P.O. Box 3466 Serrekunda - THE GAMBIA Phone: (220) 439 90 31-33 Fax: (220) 439 90 34 GHANA 19th, Seventh Avenue Ridge West P.O. Box 16746 - Accra North Ridge GHANA Phone: (233) 21 68 11 66 / 67 Fax: (233) 21 68 04 28 GUINEA Immeuble Al Iman Avenue de la Rpublique B.P. 5687 - Conakry - GUINE Phone: (224) 30 45 57 77 (224) 30 45 57 76 Fax: (224) 30 45 42 41 GUINEA BISSAU Avenue Amilcar Cabral B.P. 126 - Bissau - GUINE BISSAU Phone: (245) 320 73 60 / 61 Fax: (245) 320 73 63 KENYA Fedha Towers - P.O. Box 49584 Code 00100 Nairobi - KENYA Phone: (254) 20 288 30 00 Fax: (254) 20 288 33 04 / 288 38 15 LIBERIA Ashmun & Randall Street - P.O. Box 4825 1000 Monrovia 10 - LIBERIA Phone: (231) 727 72 77 / 697 44 94-6 Fax: (231) 701 22 90 MALAWI Loita House Corner Victoria Avenue & Henderson Street, Private Bag 389, Chichiri Blantyre 3 - MALAWI Phone: (265) 01 822 808 / 099 Fax: (265) 01 822 683 / 820 583 MALI Place de la Nation Quartier du Fleuve - B.P.E. 1272 Bamako - MALI Phone: (223) 20 70 06 00 Fax: (223) 20 23 33 05 NIGER Angle Boulevard de la Libert et Rue des Btisseurs - B.P. 13804 Niamey - NIGER Phone: (227) 20 73 71 81-83 Fax: (227) 20 73 72 03-04 NIGERIA Plot 21, Ahmadu Bello Way -P.O. Box 72688 Victoria Island - Lagos - NIGERIA Phone: (234) 1 2626638-44 (234) 1 2626710-17 Fax: (234) 1 2616568 RWANDA Plot 314, Avenue de la Paix P.O. Box 3268 - Kigali - RWANDA Phone: (250) 503580-8 Fax: (250) 501319-20 / 571633 SAO TOME E PRINCIPE Edifcio HB, Travessa do Pelourinho C.P. 316 - So Tom - DEMOCRATIC REPUBLIC OF SO TOM E PRNCIPE Phone: (239) 22 21 41/22 50 02 Fax: (239) 22 26 72 SENEGAL 8, Avenue Lopold Sdar Senghor B.P. 9095 - Centre Douanes (CD) Dakar - SNGAL Phone: (221) 33 849 20 00 Fax: (221) 33 823 47 07 SIERRA LEONE 7, Lightfoot Boston Street P.O. Box 1007 Freetown - SIERRA LEONE Phone: (232) 22 221 704 / 227 801 Fax: (232) 22 290 450 TOGO 20, Avenue Sylvanus Olympio B.P. 3302 - Lom - TOGO Phone: (228) 221 72 14 Fax: (228) 221 42 37 UGANDA Plot 4, Parliament Avenue P.O. Box 7368 - Kampala - UGANDA Phone: (256) 417 700 100 / 102 Fax: (256) 312 266 079 EBI S.A. FRANCE Tour Atlantique 1, PLace de la Pyramide, 12me tage 92911 Paris la Dfense Cedex - FRANCE Phone: (33) (0)1 55 23 23 40 Fax: (33) (0)1 47 76 42 41 EDC INVESTMENT CORPORATION Immeuble Alliance, 4me Etage Avenue Terrasson de Fougres 01 B.P. 4107 - Abidjan 01 - COTE DIVOIRE Phone: (225) 20 21 10 44 / 20 31 92 24 Fax: (225) 20 21 10 46 EDC STOCKBROKERS LIMITED 5, Second Ridge Link, North Ridge P O Box 16746 - Accra North - GHANA Phone: (233) 21 25 17 23 / 24 Fax: (233) 21 25 17 20 EDC SECURITIES LIMITED Plot 21, Ahmadu Bello Way P. O. Box 72688 - Victoria Island Lagos - NIGERIA Phone: (234) 1 761 3833 / 761 3703 Fax: (234) 1 271 4860 ECV SERVIOS FINANCEIROS - CAPE VERDE Agncia de Cmbios 43 A Avenida Amilcar Cabral Praia Santiago - CABO VERDE Phone: (238) 261 78 49 Fax: (238) 261 78 60 EPROCESS INTERNATIONAL SA 20, Avenue Sylvanus Olympio B.P. 4385 - Lom - TOGO Phone: (228) 222 23 70 Fax: (228) 222 24 34 Ghana Office: N. 556/4 Cola Avenue, Kokomleme Accra - GHANA Phone: (233) 21 213 999 Fax: (233) 21 234 457 WAMZ REGIONAL OFFICE Suite 3D, Silver Star Towers Airport City - Accra - GHANA Phone: (233) 21 776 538 Fax: (233) 21 785 196

ECOBANK LIBERIA BRANCHES

HEAD OFFICE BRANCH (ATM) Ashmun & Randall Street - P.O. Box 4825 - 1000 Monrovia 10 - LIBERIA Phone: (231) 727 72 77 / 697 44 94-6 - Fax: (231) 701 22 90 - E-mail: ecobanklr@ecobank.com DUALA BRANCH (ATM) Caldwell Junction Bushrod Isld - Monrovia Phone: 478 88 26/478 88 24/478 88 25 GANTA BRANCH (ATM) Ganta City, Nimba County - Monrovia Phone: 478 89 10/478 89 11/478 89 12 VAI TOWN BRANCH (ATM) Vai Town Bushrod Island - Monrovia Phone: 478 88 30/478 88 31/478 88 32 RANDALL STREET BRANCH (ATM) Benson and Randall Street - Monrovia Phone: 478 88 28/478 88 29 SINKOR BRANCH (ATM) Tubman Bld ,Sinkor - Monrovia Phone: 06 510036 / 07 7510036 BUCHANAN BRANCH 1 (ATM) Phone: 478 88 22/478 88 21 BUCHANAN BRANCH 2 Mittal Steel, Compound Buchanan City Grand Bassa County NPA BRANCH City Buildes Building, Bushrod Island Monrovia Phone: 06 542035 WATERSIDE BRANCH (ATM) Waterside - Monrovia Phone: 478 89 08 REDLIGHT BRANCH (ATM) Paynesville - Monrovia Phone: 06 561745 RIA BRANCH Harbel Montserrado Co. Phone: 04 774776 PLAZA CASH CENTER Pan African Plaza - Monrovia Phone: 478 89 04 STAR BASE CASH CENTER Freezone Bushrod Island - Monrovia Phone: 478 89 07 YEKEPAH CASH CENTER Yekepa CUC CASH CENTER Cuttington University Campus Phone: 06 544005 FIRESTONE CASH CENTER Firestone Margibi County MAERSK OFFICE Free Port Junction Phone: 478 89 05/478 89 06 DEDICATED WESTERN UNION CENTERS Abijaoudi Supermarket Phone: 06 585391 Aminata 17th Street, Sinkor Phone 077902177 Aminata Vamoma House Phone: 07 7902181 Aminata, Old Road Sinkor Phone: 07 7700008 Aminata UN Drive Phone: 07 7902180 Aminata Chocolate City Phone: 07 7902183 Aminata Carey Street Phone: 07 7902178 Aminata ELWA Road Phone: 07 7902182 Jorkpen Town Market Phone: 07 7712898

ATM : AUTOMATED TELLER MACHINE

ANNUAL REPORT ECOBANK LIBERIA

ECOBANK LIBERIA LIMITED

CONTENTS NOTICE OF ANNUAL GENERAL MEETING PAGE 4

FINANCIAL HIGHLIGHTS

CHAIRMANS ADDRESS

DIRECTORS REPORT

BOARD OF DIRECTORS

10

DIRECTORS AND PROFESSIONAL ADVISERS

11

MANAGEMENT TEAM

12

BUSINESS REVIEW

13

AUDITORS REPORT

17

PROFIT & LOSS ACCOUNT

18

BALANCE SHEET

19

CASH FLOW STATEMENT

20

NOTES TO THE FINANCIAL STATEMENTS

21

STATEMENT OF VALUE ADDED

31

FIVE YEARS FINANCIAL SUMMARY

32

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN that the Annual General Meeting of Ecobank Liberia Limited will be held on Wednesday April 9, 2009, at 10a.m in the Conference Room of the Banks head office located in the corner of Randall and Ashmun Street to transact the following business.

1) To receive and consider the Report of Directors. 2) To receive and consider the Audited Financial Statements as at 31st December 2008, and Auditors Report thereon.

3) To declare a dividend 4) To re-elect Director(s) 5) To authorize the Directors to fix the remuneration of the Auditors.

BY ORDER OF THE BOARD Amos Andrews Company Secretary Dated this 31st day of March, 2009.

FINANCIAL HIGHLIGHTS

2008 L$000 $000 L$000

2007 $000

Major Balance Sheet items Total Assets Loans and Advance Deposits Shareholders Equity 8,963,203 3,390,905 7,093,219 786,333 139,614 52,818 110,486 12,248 5,929,408 2,194,904 4,571,262 609,205 94,118 34,840 72,560 9,670

Major Profit and Loss items

Gross Earnings Loan Loss Provision Profit/ (Loss) before tax Profit/ (Loss) after tax

1,176,067 162,343 340,900 235,313

18,319 2,529 5,310 3,665

817,350 79,054 247,077 163,059

12,974 1,255 3,922 2,588

Number of Employees-As at December Number of Locations

265 28

239 21

PERFORMANCE REPORT YEAR 2008 Chairmans Address On behalf of the Board of Directors of Ecobank Liberia Limited, I welcome you to the 9th Annual General Meeting and present to you a review of the corporate environment along with a report on the performance and achievement of your bank for the financial year ended 31st December 2008. The year represents another milestone in the life of the bank inspite of the global economic crisis; it succeeded in consolidating its business and achieved a good financial performance. It is therefore my pleasure to present to you today highlights of the performance of Ecobank Liberia for the year ended 31st December 2008. Operating Environment The Liberian economy witnessed significant strides in year 2008. The country received debt waivers from both bilateral and multilateral creditors while a number of donor funds were equally received by the Government in the recovery process. The successful resolution of a number of the nations external debts, restructuring of others and the inflow of foreign donors and investment provided a leeway for the government during the year. The continued presence of the United Nation Mission in Liberia (UNMIL) coupled with the democratic governance goes a long way in stabilizing the country. A number of initiatives towards poverty eradication through partnership with private sector and International Agencies are being implemented. Bilateral talks are also on going with Countries and Foreign Investors to explore the opportunities in mechanized rice production, mining and oil exploration. Generally, the economy continued to show signs of progress during the year. It is expected that the economy will become stronger with a very high hope of inflow of more direct foreign investment in the near future. The banks operated in a dynamic environment as competition heightened up in the wake of further licensing of more financial institutions by the Central Bank of Liberia during the year. Ecobank Liberia again set another record for itself as the first bank to win the 2008 Bankers Awards in Liberia. The award was in recognition of the banks demonstration of innovative and exciting ways of improving service delivery and profits in a most testing environment. The bank is to be fully supported by the Ecobank Group Shared Service and Technology Centre; an ultra-modern and robust technology platform which enables back office operations to be processed with high level of speed, accuracy and efficiency. Banking services are conducted on-line -real time. Meanwhile, following the recapitalization of the bank in 2007, a good number of large ticket transactions were financed thus impacting positively on the bank and the economy at large. The banks network has equally increased from its previous twenty one channels to twenty eight channels (twelve branches and sixteen dedicated channels) as at the end of the accounting year. Point of Sales Terminals (POS) were added to the multi-channels of products available to customers in addition to the Automatic Teller Machine (ATM) introduced for the first time into the Liberian economy in 2007 by Ecobank. Additional strategic partnerships were developed in furtherance of small and medium scale enterprise promotion. 6

Ecobank Liberia is not just successful as a financial institution, it equally provides support to the society as a socially responsible corporate organization. The bank provides supports to entrepreneurial and asset development, sports and women empowerment during the year. Our unalloyed commitments in giving back to the society continue to be part of our corporate social responsibility. Financial Results The bank continues to show great resilience with the increasing competition. As of today, licensed banks stands at eight while Ecobank maintain the leading role. The growth pattern of Ecobank Liberia on all key performance indices is far above the industry norm. The growth in channels in line with the Retail Bank focus of Ecobank translates to improved deposit mobilization, business development and improved profitability. Gross earnings of the Bank grew to L$1,176.07million ($18.32million) from its 2007 figure of L$817.35million ($12.97million) representing an increase of 44%. Net Interest Margin increase by 58% closing at L$399.53million ($6.22million) from L$253.07 million ($4.02million) recorded in the prior year. Fees and commissions also increased by 38% from L$547.08million ($8.68million) in 2007 to L$752.39million ($11.72million) in the current year. The above translated to Profit before tax of L$340.90million ($5.31million) over last years figure of $247.08million ($3.9million) while Profit after tax increased by L$72.25million ($1.13million), from L$163.06 million ($2.6million) in 2007 to L$235.31 million ($3.67million) in the current year. Risk assets increased by 54% as additional loans and advances were granted during the year. Net credit portfolio increased from L$2.19billion ($34.84million) to L$3.39billion ($52.82million) during the year. Total assets grew by 51%, from L$5.93billion ($94.12million) of the previous year to L$8.96billion ($139.61million). The growth in assets was funded by the increase in deposits. The deposit volume increased from L$4.57billion ($72.56million) in 2007 to L$7.09billion ($110.49million) as at 31st December 2008 while the shareholders funds also increased by 29% from L$609.21million ($9.67million) last year to L$786.33million ($12.25million). On the basis of the improved performance and to underscore the commitment to deliver exceptional shareholder value, the directors are recommending a total dividend of $1.25million which translates to $0.3 per share. Customer Focus Our customers have developed trust in us and are therefore retained. In addition to the traditional banking services, our introduced electronic banking services like the Automatic Teller Machine, Point of Sales Terminals and Internet Banking will continue to enhance service delivery to customers. Our objective is to provide convenient, reliable and easy-to-use products and services to our customers for quality and satisfaction.

The ATM cards issued by Ecobank Liberia as the first ATM in the Liberian economy are usable in all the twenty six countries where Ecobank has presence. To further boost our products and service offering, the bank is again about to launch the VISA Product into the Liberian Market for its teeming customers. On the whole, we are committed to exceeding our customers expectation in all facets of our services. The Future The need for improved infrastructures that will reduce the cost of doing business and promote an enabler for desired economic growth and development in the country cannot be over emphasized. The ability of the government to achieve the lofty objectives of the budget in the face of the global economic crisis is fundamental to economic and social development of the nation. As we commit to the future, we articulate new strategies to consolidate on our unprecedented performances and ensure continue growth. We will continue to target new opportunities, strengthen strategic partnerships, and enhance value proposition to customers. Governance and Regulation The Ecobank Group adopted a Group Corporate Governance Charter, Rules, and Procedure for Board of Directors and Code of Ethics for Directors in 1998, thus becoming a pioneer in institutionalizing corporate governance principle as part of the Group Corporate Structure. Ecobank Liberia remains committed to the implementation of good corporate governance while fully compliant with all regulatory requirements during the year. In keeping with the best corporate practice, the Board continue to be guided by the Banks Article of Association and the applicable laws. The bank conducts its operations in transparent manner in line with international best practices. Appreciation On behalf of the Board, I wish to express our appreciation to all our stakeholders at this Annual General Meeting and pledge our commitment to the growth of our bank. To our valued customers, we say a big thank you for your patronage and the confidence in us. We thank our management and staff for their continued hardwork, dedication and loyalty to the institution. To our regulators, we are indeed grateful for providing an enabling regulatory environment and valuable support. We express profound appreciation to the Ecobank Group for the formidable support during the year and our gratitude to our shareholders without whose support and encouragement our achievements would not have been realized.

G. Pewu Subah Chairman 8

Directors Report The directors present their report and audited financial statements for the year ended December 31, 2008. Principal Activity The bank is engaged in the business of universal banking. Such services principally involve the acceptance of deposits, granting of loans and provision of other financial services to the banking public. Operating Results The following is a summary of the banks operating results: 2008 L$000 $000 Profit before Taxation Taxation Profit after Taxation Parent Company The company is fully owned subsidiary of Ecobank Transnational Inc., a company incorporated in the Republic of Togo. Auditors Voscon Inc., have indicated their willingness to continue in office as auditors of the bank. BY ORDER OF THE BOARD 340,900 (105,587) 235,313 5,310 (1,645) 3,665 2007 L$000 $000 247,077 (84,018) 163,059 3,922 (1,334) 2,588

Director

Director

BOARD OF DIRECTORS

10

DIRECTORS AND PROFESSIONAL ADVISERS

Pewu Subah

Chairman

Morenike Adepoju

Managing Director

Clavenda Bright-Parker

Member of the Board

Oba M. Segun Adesina

Member of the Board

Moustapha Fall

Alternate Director

Albert Essien

Director Ecobank Transnational Incorporated/ Member of the Board

Secretary Amos Andrews

Registered Office Ashmun & Randall Street Monrovia, Liberia

Auditors Voscon Inc. Certified Public Accountants Mechlin Street Monrovia, Liberia

11

MANAGEMENT TEAM Morenike Adepoju Remmy Bartee Olanipekun Okuwobi Felix Saint-Jean Doreen McIntosh George Tawalah Adolphus Tweh Patrick Fallah Olufemi Adekunle Sandei Cooper Claude Koutchade Brenda Dorleh Amos Andrews Branch Managers Abraham Cooper Muna Doe Mohammed Dukuly Gibson Kollie James Paywala Edward Maston Thomas Randall Justin Togba Archie Donmo Mass Herderson Lemuel Cole Head Office Branch/Ashmun & Randall Sts. Sinkor Branch Buchanan Branch Vai Town Branch Duala Branch Randall Street Ganta Branch Robert Intl Airport Branch Free Port Branch Waterside Branch Paynesville Branch 12 Managing Director/CEO Head, Human Resources Chief Finance Officer Head, Wholesale Bank Head, Retail Bank Head, SME-Retail Bank Head, Operations Country Risk Manager Head, Audit and Compliance Treasurer Head, Information Technology Head, Transaction Bank Legal Officer/Company Secretary

BUSINESS REVIEW The bank was incorporated as a private limited liability company and obtained a license to operate as a commercial bank on August 16, 1999. Ecobank Liberia Limited is a wholly owned subsidiary of Ecobank Transnational Incorporated (ETI), a bank holding company, incorporated in 1985 under the laws of Togo. Business Ecobank principal activity continues to be the provision of commercial banking services to its customers. The bank operates in the spectrum of Wholesale, Retail, Treasury and Financial Institution and Transaction Bank Groups. The branch network enables the bank to access low cost and stable retail deposits across the country with a direct positive impact on providing accessible funds and quality service to its numerous customers. Recognizing information technology as a principal tool in delivering service quality and customers satisfaction, the Ecobank Group has invested heavily on centralized technology platform to foster this objective. In addition to this, the risk management policies were enhanced and various product programs were developed to meet the teeming needs of our customers. We are at a position to benchmark our services with the best financial institutions within the globe. Strategy Ecobank Liberias goal has always been to be the strategic partners to our customers and our market. The bank has distinguished itself as a leading financial institution in the country and also positively impacted on the economic advancement and development of Liberia. The business units in the bank are structured to better service the various spheres of customers business needs. Transaction Bank Group provides the e-banking services; the corporate group is managed by the Wholesale Group; Non Governmental Organizations, multilateral agencies and financial institutions are managed from the Treasury and Financial Institutions while the Retail Group manages the small and medium enterprises, consumers and microfinance entities. This way, each strategic business unit is able to maintain a strong focus on target market towards achieving value-adding services. Performance The banks performance in 2008 proves to be another major improvement on the prior years performance. Gross Earnings and Profit after Tax increased by 44%. The bank was able to manage its cost despite the inflation rate in the economy to achieve its present result. In the same period our total assets increased by 51% over the previous year. This financial scorecard lends credence to the banks professional, innovative and committed financial services reflecting a deep understanding of the market.

13

Financial Position Ecobank continues to be very sound and solvent. The banks ability to meet depositors withdrawals requirement as measured by the ratio of cash, short term funds and bank balances to total deposit liabilities is well above industry standard of 15% minimum liquidity requirement, implying a healthy liquidity position. Network Given the Retail Bank focus of the bank, Ecobank Liberia sustained its aggressive branch network during the year coupled with the on line real time technology platform to meet customers needs in an efficient and effective manner. The bank increased its branches and channels in the year under review to twenty eight from the previous twenty one. The bank was the very first to take banking services outside the shores of Monrovia by opening branches in Ganta, Buchanan, Paynesville, cash centers in Gbanga and Harbel, while its physical presence in Zwendu, Voinjaman, Pleebo, Kakata amongst others are nearing completion. The Ecobank Group operates in twenty-six countries in the Western, Central, Middle and Southern Africa in keeping with its calling as truly Pan African. Wholesale Banking The Wholesale Bank manages clients with formal management structure and significant turnover. The Group equally has responsibility for the Public Sector as it relates to the Central and County Administrations. The Wholesale sub-sector is structured by industry groups comprising of Energy, Commerce, Manufacturing, Construction, Mining, Logging, Agriculture and Civil Service. Retail Banking Retail Banking Group manages products and services aimed at promoting growth for Consumer and Micro, Small and Medium Scales (MSME) businesses. The Group also provides the avenue and support for marketing Transaction Bank Products and Services particularly e-banking products to the satisfaction of the consumers. Retail Banking Products on offer include Western Union, Private Banking, Electronic Banking, Deposit Products, Business and Consumer Loans. The Group handles various payroll services within and outside the metropolis for NGOs and other corporate organizations. The Point of Sales Terminals (POSs) was also introduced for the first time into the Liberian market to compliment the ATM services. Treasury and Financial Institution In addition to the management of the banks balance sheet, the Treasury and Financial Institution Group are also involved in relationship management for International Agencies and Financial Institutions. The Group relates with various Non Governmental Organizations, Embassies, International Organizations and Insurance Companies. Trading on foreign exchange is also the responsibility of Treasury. 14

Technology and Telecommunication Technology and Telecommunication in Ecobank is used as a tool to drive service delivery. The bank continues to upgrade its technology platform to better satisfy the needs of the customers. In addition to the tremendous supports from the robust centralized Group technology platform, the subsidiary upgraded its technology during the year to suit both the regulatory need and enhance efficiencies in service delivery to customers. The bank continues to be on-line real-time. People The laudable performance in 2008 can largely be attributable to the commitment and loyalty of the staff and management of the bank. The staff displays unequal commitment towards the realization of corporate goals. The bank appreciates the direction of the management team and the guided support from the Board of Directors and the Ecobank Group Office. Ecobank Liberia will continue to train its personnel to outperform the expectations of its teeming customers. We place a very high premium on quality service hence we ensure that staff acquire the competencies necessary for effective financial service delivery. We will continue to groom workforce that would not be easily reproduced in any bank in Liberia and thus provide role model for the banking industry and the society at large. Customer Service A major focus in Ecobank Liberia is to make the customers happy. We have developed measurable indices and feedbacks towards customers satisfaction. We benchmark our service delivery to the best financial institutions in the globe. Brand Development Ecobank mission is to become the World Class African Banking Group. The bank has a One Bank concept with uniform policies and practices replicated across the Ecobank Group. It provides convenient, accessible and reliable banking products and services. Services using world class standards of measurement; customers satisfactions remain very critical to core and all operations of the bank. Corporate Governance The Ecobank Group had since adopted the IFC principles and methodology on corporate governance to guide its corporate governance framework. In keeping with the best corporate governance rules, the board continues to take responsibilities as contained in the Banks Article of Association, the applicable laws in the country aligned with international best practices. The Board has remained strong and focused in performing its statutory responsibilities. 15

Regulation and Supervision Ecobank Liberia, like any other financial institution in the country is subject to the supervision and examination of the Central Bank of Liberia through its Banking Supervision Department. The parent company Ecobank Transnational Incorporated provides technical assistance apart from oversight functions to facilitate franchise protection. Competition The world is a global village hence competition is in the interest of best practices and Customer satisfaction. The operating environment comes with multifaceted challenges and opportunities, our bank appreciates this fact and is resolved to continue to compete positively with other banks in the Liberian economy and complement other regional international banks. We have strategic partnership with agencies and institutions to ensure the availability of comprehensive and qualitative financial services to our customers. We believe with all due humility that we provide unparallel quality in service delivery to our customers. Inflation and Currency Movement The Central Bank continues in its effort to maintain a high level of healthy business practice in the banking sector leading to relative stability, predictability and confidence. However, infrastructural limitations have an impact of the level of bank effectiveness, while inflation and exchange rates fluctuations may also be taking some toll. Conclusion The year 2008 remains outstanding for Ecobank as it was capped with the winning of the 2008 Banker of the Year Award issued by the Banker/ Financial Times; a strong balance sheet and earnings, innovative products and services, and a formidable Bank Network. We commit to quality services at all times and look forward to the support of our customers and other stake holders.

16

AUDITORS REPORT To: The Board of Directors and Shareholders of ECOBANK Liberia Limited

We have audited the financial statements of ECOBANK Liberia Limited for the year ended December 31, 2008 set out on pages 3, 4 and 5, which have been prepared in accordance with the accounting policies set out on pages 6 to 8. Respective Responsibilities of Management and Auditors The Banks Management is responsible for the preparation of the financial statements. It is our responsibility to express an independent opinion, based on our audit, on these financial statements prepared by the Management. Basis of Opinion We conducted our audit in accordance with International Standards on Auditing, (ISA). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes an assessment of the accounting principles used and significant estimates and judgments made by the Management, and an evaluation of the overall adequacy of the presentation of the financial statements. We planned and performed such audit procedures and obtained the explanations, which we considered necessary for the purpose of our audit. We believe that our audit provides us with a reasonable basis for our opinion. Opinion The Balance Sheets and Profit & Loss Statements of the Bank on pages 3 and 4 are in agreement with the books, which, in our opinion, have been properly kept. We obtained the information and explanations we required. In our opinion: (i) the assets of the Bank have been properly valued and adequate provision has been made for depreciation in the value thereof. (ii) The financial statements of the Bank have been properly prepared in accordance with the respective provisions of the Articles of Incorporation, the Financial Institutions Act (FIA) 1999, the relevant circulars issued by the Central Bank of Liberia and the Revenue Code Act 2000 of Liberia (except for the method of depreciation). (iii) The financial statements give a true and fair view of the state of affairs of the Bank as at December 31, 2008 and of the profit and cash flows for the year then ended in conformity with International Accounting Standards (IAS).

CERTIFIED PUBLIC ACCOUNTANTS January 25, 2009 Monrovia

17

ECOBANK Liberia Limited

PROFIT AND LOSS STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008 2008 L$000 2007 L$000

Note Income Interest Income Interest Expense Net Interest Income Fees, Commissions and Exchange Income Other Income Operating Income 15 16

423,681 (24,155) 399,526 750,893 1,493 1,151,912

270,266 (17,199) 253,067 547,084 800,151

17 18

Provision for Loan Losses

(162,343)

(79,054)

Operating Expenses

19

(648,669)

(474,020)

Profit/(Loss) before Taxation

340,900

247,077

Corporate Tax Profit after Tax

20

(105,587) 235,313

(84,018) 163,059

APPROPRIATION: Transferred to Statutory Reserve Proposed Dividend Transferred to Retained Earnings (58,828) (80,250) 96,235 (40,765) (63,000) 59,294
.

The accounting policies and notes on pages 21 to 30 form part of the financial statements.

18

ECOBANK Liberia Limited

BALANCE SHEETS AS AT DECEMBER 31, 2008 2008 L$000 2007 L$000

Note Assets Cash and Short-Term Funds Loans and Advances 2 3-4

4,677,256 3,390,905 8,068,161 599,558 295,484 8,963,203

3,210,349 2,194,904 5,405,253 339,690 184,465 5,929,408

Other Assets Fixed Assets Total Assets Liabilities Due to Banks Deposits Accounts Corporate Tax Other Liabilities and Accruals Total Liabilities Shareholders Equity Share Capital Shareholders Advance Reserves Total Shareholders Equity

5 6

7 8 20 9

36,270 7,093,219 97,271 950,110 8,176,870

33,318 4,571,262 81,229 634,394 5,320,203

10 11 12

166,000 259,150 361,183 786,333

166,000 259,150 184,055 609,205

Total Liabilities and Shareholders Equity

8,963,203

5,929,408

The accounting policies and notes on pages 21 to 30 form part of the financial statements. The Board of Directors approved the Financial Statements set out on pages 18 to 20 on 15 January 2009 and was signed on their behalf by:

_________________ G. Pewu Subah Chairman 19

____________________ Morenike Adepoju Managing Director

ECOBANK Liberia Limited

CASH FLOWS STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008 2008 L$000 2007 L$000

Note Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash from Operating Activities: Provision for Depreciation Incr. In Deposits & Current Accounts Decr. In Intangible Assets (Decr.)/Incr. In Other Liabilities Decr./(Incr.) In Loans and Advances Incr. In Other Assets/Due from Association Corp Incr. in Corporate Tax Total Adjustment Net Cash from Operating Activities Investing Activities: Purchase of Fixed Assets and Intangible Assets Proceeds from Disposal of Fixed Assets Net Cash Used in Investing Activities Financing Activities: Shareholders Advance Net adjustment in reserves Net Cash from Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at 1 January Cash and Cash Equivalents at 31, December (Note 2b)

235,313

163,059

62,962 2,521,957 315,716 (1,196,001) (259,868) 16,042 1,460,808 1,696,121

43,528 1,472,930 264,705 (1,061,560) (85,857) 69,989 703,735 866,794

(173,981) (173,981)

(118,360) .

(118,360)

(58,185) (58,185) 1,463,955 3,177,031 4,640,986

144,900 144,900 893,334 2,283,697 3,177,031

The accounting policies and notes on pages 21 to 30 form part of the financial statements.
20

ECOBANK Liberia Limited

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008 1. Accounting Policies The principal accounting policies adopted in the preparation of these financial statements are set out below:

a.

Basis of Presentation These financial statements have been prepared under the Historical Cost Convention and conform to International Accounting Standards (IAS) and the prevailing industry practice in Liberia.

b.

Interest and Discount Income Interest income is recognized on a time proportional basis, which takes into account the effective yield on the asset. Interest income includes the amount of amortization of any discount or premium on acquisition of the asset. Accrual of interest on an advance is suspended when the recovery is doubtful. Income is thereafter recognized on a cash basis.

c.

Fee Income Fee Income is accounted for in the period when receivable, except where the fee covers the costs of ongoing services to, or risks borne for the customers, or is interest in substance. In each of these cases the fee is recognized on a time proportional basis.

d.

Loans and Advances Loans and Advances are stated at net cash advances plus interest accrued thereon less provision and write-offs are based on prevailing banking regulations and Ecobanks credit policy. Advances are analyzed between the total amount outstanding and provisions in a note to the financial statements.

21

ECOBANK Liberia Limited

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008 e. Provision for Loan Losses Provisions for Loan Losses are made having regard to both specific and general risks. The specific element of the provisions relates to those loans that have been individually reviewed and specifically identified as nonperforming. The general element of the provision relates to those existing losses, which, although not yet specifically identified, are known to be inherently present in the banks lending portfolio at the balance sheet date. In determining the level of provisions required, Management considers the Prudential Regulation on assets classification issued by the Central Bank of Liberia and other factors including, but not limited to domestic economic conditions, the composition of the loan portfolio and prior loan losses experience. Provisions made during the year (less amounts release and recoveries of loans previously written off) are charged as a separate amount in the profit and loss account. Loans are written off when the extent of any loss is confirmed against the related provisions. f. Commission on Acceptances, Bills and Promissory Notes Commission Income on Acceptances, Bills and Promissory Notes endorsed is credited to income over the lives of the relevant instruments. g.
Foreign Currency Translations

Assets and Liabilities denominated in foreign currencies are translated to United States Dollars at exchange rates ruling at the banks year-end. Gain and losses resulting from Foreign Currency Translation or exchange are included in the profit for the year. h. Fixed Assets Fixed assets are stated at cost less accumulated depreciation. Depreciation is calculated to write-off the cost of fixed assets over their estimated useful lives at the following annual rates: Rate % 20 33.33 25 22

Furniture and Equipment Computers Motors vehicles

Method Straight-Line Straight-Line Straight-Line

ECOBANK Liberia Limited

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008 Leasehold Improvements are depreciated over the period of the lease. Maintenance and repairs are charged to the profit and loss account when incurred and improvements are capitalized. Gains and losses, if any, on the disposal of fixed assets are reflected in the current operating results. i. Deferred Revenue Expenditure Expenditure of a revenue nature which are unlikely to generate income in their initial years are deferred and written-off in three equal annual installments beginning from the year when expenditure on a particular item is completed. 2008 L$000 2. Cash and Short-Term Fund Cash on Hand Balances with Central Bank of Liberia Of collection, money at call and placements) 1,148,771 37,095 3,491,390 4,677,256 2b. Analysis of Cash and Cash Equivalents: Cash and Short-Term Funds Due to Banks (Note 7) 4,677,256 (36,270) 4,640,986 3. Loans and Advances (i) Analysis by Type of Loans & Advances: Loan Overdraft 3,210,349 (33,318) 3,177,031 695,197 1,154,075 1,361,077 3,210,349 2007 L$000

2,025,422 1,609,294 3,634,716 (239,044) (4,767) 3,390,905 23

1,105,564 1,394,734 2,500,298 (305,394) 1,133,344

.

Provisions for Loan Losses (Note 4) Interest in Suspense

(ii)

Analysis by Maturity: Due on demand or within 1 month Due after 1 month but within 3 months Due after 3 months but within 6 months 237,035 383,230 520,406 120,462 257,495 694,166 990,989 131,792 2,194,904

Due after 6 months but within 12 months 1,826,069 Due after 12 months 424,165 3,390,905 (iii) Analysis by Performance: Performing Non-Performing 3,309,229 81,676 3,390,905

2,071,737 123,167 2,194,904

(iv)

Analysis by Security: Secured against Real Estate Unsecured Otherwise Secured 24,075 3,366,830 3,390,905 1,197,617 21,100 976,187 2,194,904

(v)

Analysis by Type of Customer: Individuals 2,333,432 Private Corporations & Businesses 959,849 Non-Financial Public Corporations 12,365 Central and Other Levels of Government 83,079 Others 2,180 3,390,905 239,905 1,822,547 30,169 83,431 21,031 2,194,904

24

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008 2008 L$000 (vi) Analysis by Industry: Agriculture, Forestry and Fishing Manufacturing Tertiary 110,536 3,280,369 3,390,905 (vii) Related Party Advances Directors 4,902 4,902 4. Provision for Loan Losses Balance at Beginning of Year Interest in Suspense Adj. Balance at Beginning of Year Write-off Charge for the Year Recoveries Net Charge Balance at End of Year (Note 3) 5. Other Assets Interest and Fees Receivable Prepayments Advance Corporation Tax Paid Sundry Receivables Due from Western Union 24,035 102,825 16,748 483,560 14,711 641,879 (42,321) 599,558 25 10,532 53,619 11,221 290,609 15,239 381,220 (41,530) 339,690 6,500 6,500 2007 L$000 1,129 39,804 2,153,971 2,194,904

305,394 2,342 307,736 (231,035) 220,070 (57,727) (162,343) 239,044

216,481 9,859 226,340 110,305 (31,251) 79,054 305,394

Less Provision

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008 6. Fixed Assets Land L$000 7,957 1,728 9,685 Leasehold Furniture & Improvement Equipment L$000 L$000 115,935 62,207 (9,069) 169,073 81,720 30,417 (19,989) 92,148 Computer L$000 74,911 56,675 (16,416) 115,170 Motors Vehicles L$000 27,234 22,953 (6,682) 43,505 Total L$000 307,757 173,980 (52,156) 429,581

COST: At January 1, 2008 Additions Disposal At December 31, 2008 ACCUMULATED DEPRECIATION: At January 1, 2008 Charge Disposal At December 31, 2008 NET BOOK VALUE: At December 31, 2008 At December 31, 2007

34,626 12,281 (9,069) 37,838

39,510 20,457 (19,989) 39,978

36,563 23,904 (16,416) 44,051

12,593 6,319 (6,682) 12,230

123,292 62,961 (52,156) 134,097

9,685 7,957

131,235 81,309 26

52,170 42,210

71,119 38,348

31,275 14,641

295,484 184,465

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008 2008 L$000 7. Due to Banks Affiliate banks Other Banks 36,270 36,270 8. Deposits Accounts (i) Analysis by Type of Deposit Demand (Checking) Accounts Saving Accounts Time Deposits 5,499,189 1,561,757 32,273 7,093,219 (ii) Analysis by Maturity: Due on Demand or within 1 month Due after 1 month but within 3 months Due after 3 months but within 6 months Due after 6 months but within 12 months Due after 12 months (iii) Analysis by Type of Depositor 4,110,085 2,297,758 53,187 589,477 41,520 1,192 7,093,219 9. Other Liabilities and Accruals Cash Collaterals Remittances Awaiting Disposal Other Creditors and Accruals 176,238 29,636 744,236 950,110 27 31,496 7,297 595,601 634,394 2,770,699 1,479,138 124,475 44,780 151,590 580 4,571,262 7,089,209 1,605 963 1,442 7,093,219 4,460,996 110,250 16 4,571,262
.

2007 L$000 33,318 .

33,318

3,517,785 943,211 110,266 4,571,262

Individuals Private Corporations & Businesses Financial Corporations Non-Financial Public Corporations Central and Other Levels of Government Staff

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008

10.

Share Capital 2008 No. 000 Authorized: Ordinary shares of US$2/L$83 each Issued and fully paid: Issued for Cash 2008 L$000 2007 2007 No. 000 L$000

2,000

166,000

2,000 166,000

2,000

166,000

2,000 166,000

2008 L$000 11. Shareholders Advance Balance at 1 January New Advance Balance at 31 December 259,150 259,150

2007 L$000

114,250 144,900 259,150

12.

Reserves Retained Earnings Statutory Other Reserves Dividend Reserves 57,687 58,828 116,515 63,000 (63,000) 80,250 80,250 (1,183) (1,183) Total 184,055 (58,185) 235,313 361,183

Balance at 1 January 2008 Movement in Reserves Transfer from Profit and Loss Balance at 31 December 2008

64,551 4,815 96,235 165,601

Balance at 1 January 2007 Transfer from Profit and Loss Balance at 31 December 2007

5,257 59,294 64,551

16,922 40,765 57,687

63,000 63,000

(1,183) (1,183)

20,996 163,059 184,055

28

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008
13.

Contingent Liability The outstanding Contingent Liabilities as at December 31, 2008 representing Documentary and Commercial Letter of Credit, Performance Bond, Guarantees and Indemnities was L$393,996,620 (2007: L$147,298,319).

14.

Acceptances and Guarantees

There were no outstanding Commitments as at December 31, 2008 (2007: Nil) 2008 L$000 15. Interest Income Placement and Short-Term Funds Loans and Advances 37,483 386,199 423,681 16. Interest Expense Saving Accounts Time Deposits Others 21,474 1,825 856 24,155 15,275 1,388 536 17,199 57,789 212,477 270,266 2007 L$000

17.

Fees, Commissions and Exchange Income Exchange Gains Current Account Servicing Import and Documentary Credits Funds Transfer Guarantees Other Commissions & Fees 74,137 85,388 21,474 294,291 17,336 258,267 750,893 62,231 79,500 20,660 255,542 8,784 120,367 547,084

18.

Other Operating Income Other Income 1,493 1,493 . .

29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008 2008 L$000 19. Operating Expenses Personal Expenses Salaries and Allowances Social Security Funds Contributions Other Employee Costs Depreciation and Amortization Occupancy Expenses Administrative Expenses Audit Fees and Expenses Others 183,068 17,454 36,695 237,217 62,962 51,950 271,895 972 23,673 648,669 131,871 12,597 14,818 159,286 43,528 19,003 231,100 1,323 19,780 474,020 2007 L$000

The above staff cost includes Directors remuneration of L$2,632,200 for the year 2008. The average number of persons employed during the year was 2008: 265 (2007: 239). 2008 L$000 20. Corporate Tax Brought Forward Current Year Tax Advance Corporate Tax (2006) Tax Payment (2006) Advance Corporate Tax (2007) Tax Payment (2007) Current Advanced Corporate Tax 21. Dividend The Board of Directors has proposed a total Dividend in the amount of L$80,250,000 during the year 2008 (2007: L$63,000,000). 22. Capital Commitments There were no major commitments to Capital Expenditure at December 31, 2008 (2007: Nil). 30 81,229 105,587 186,816 (5,109) (67,688) (16,748) 97,271 11,240 84,018 95,258 (2,701) (107) (11,221) 81,229 2007 L$000

ECOBANK Liberia Limited

For the Year Ended December 31, 2008 STATEMENT OF VALUE ADDED

2008 L$000 Gross Income Interest Paid 1,176,067 (24,155) 1,151,912 Administrative Overheads Value Added Distribution Employees Salaries Providers of Funds Dividend Government Taxation Charge The Future Asset Replacement (Depreciation) Expansion (Transfer to Reserves) 62,962 155,063 641,079 10% 24% 100% 105,587 16% 80,250 13% 237,217 37% (510,833) 641,079 100%

2007 L$000 817,350 (17,199) 800,151 (350,260) 449,891 100%

159,286

35%

63,000

14%

84,018

19%

43,528 100,059 449,891

10% 22% 100%

This statement represents the distribution of wealth created through the use of the Banks assets through its own and employees efforts.

31

ECOBANK Liberia Limited

Five Years Financial Summary BALANCE SHEETS
2008 L$000 Assets Cash and Short-Term Funds Loans and Advances Other Assets Fixed Assets Total Assets 4,677,256 3,390,905 599,558 295,484 8,963,203 3,210,349 2,194,904 339,690 184,465 5,929,408 2,286,382 1,133,344 253,833 109,633 3,783,192 2,057,466 498,040 215,320 70,983 2,841,809 1,917,638 534,202 149,616 48,914 2,650,370 2007 L$000 2006 L$000 2005 L$000 2004 L$000

Liabilities Due to Banks Deposits Accounts Other Liabilities and Accruals Total Liabilities Net Assets 36,270 7,093,219 97,271 8,176,870 786,333 33,318 4,571,262 715,623 5,320,203 609,205 2,686 3,098,332 380,928 3,481,946 301,246 45,545 2,373,096 247,861 2,666,502 175,307 193,382 1,974,552 361,582 2,259,619 118,751

Financed by Share Capital Shareholders Advance Reserves Shareholders Fund Total Shareholders Equity Acceptances and Guarantees 166,000 259,150 361,183 786,333 8,963,203 393,997 166,000 259,150 184,055 609,205 5,929,408 147,298 166,000 114,250 20,996 301,246 3,783,192 167,656 166,000 56,000 (46,693) 175,307 2,841,809 0 166,000 (47,249) 118,751 2,650,370 0

Profit and Loss Gross Earnings Profit before tax Profit after tax 1,176,067 340,900 235,313 817,350 247,077 163,059 497,467 102,060 67,689 337,418 566 566 248,737 3,178 3,178

32

ECOBANK Liberia Limited

Five Years Financial Summary-USD BALANCE SHEETS
2008 $000 Assets Cash and Short-Term Funds Loans and Advances Other Assets Fixed Assets Total Assets 72,854 52,818 9,339 4,603 139,614 50,958 34,840 5,392 2,928 94,118 37,791 18,733 4,196 1,812 62,532 36,740 8,894 3,845 1,268 50,747 35,186 9,802 2,745 898 48,631 2007 $000 2006 $000 2005 $000 2004 $000

Liabilities Due to Banks Deposits Accounts Other Liabilities and Accruals Total Liabilities Net Assets 565 110,486 16,314 127,366 12,248 529 72,560 11,359 84,448 9,670 44 51,212 6,296 57,553 4,979 813 42,377 4,426 47,616 3,130 3,550 36,267 6,635 46,452 40

Financed by Share Capital Shareholders Advance Reserves Shareholders Fund Total Shareholders Equity Acceptances and Guarantees 4,150 4,300 3,798 12,248 139,614 6,137 4,150 4,300 1,220 9,670 94,118 2,338 4,150 2,000 (1,171) 4,979 62,532 2,771 4,150 1,000 (2,020) 3,130 50,747 0 4,150 0 (1,971) 2,179 48,631 0

Profit and Loss Gross Earnings Profit before tax Profit after tax Transfer to Reserves 18,319 5,310 3,665 2,415 12,974 3,922 2,588 1,588 8,223 1,687 1,119 1,119 6,025 10 10 10 4,564 58 58 58

33