Ecobank Zimbabwe Limited

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Ecobank Zimbabwe Limited (2021-09)
  • Ecobank Zimbabwe Limited
  • Year : Sep 2021
3 Tokens
USD 300.00

The bank has a sound competitive position in comparison to rated peers reflected by 1) dominance in trade finance/ structured finance, 2) increasing market shares in both loans and deposits, and 3) above average franchise strength. Furthermore, GCR positively notes Ecobank Zimbabwe’s classification as a domestic systemically important bank (“D-SIB”). The bank’s market shares grew over the past 12 months, attributable to its ability to leverage on the group’s structure and correspondent banking channels (an added advantage over peers) that enable it to offer letters of credit (“LoCs”) and trade finance.

Additional Information

The outlook is Stable, balancing our expectation that Ecobank Zimbabwe will maintain a sound financial profile supported by low asset quality risk, sound internal capital generation, defendable position in trade finance and adequate levels of liquidity against the turbulent operating environment. National scale ratings reflect relativities to the local Zimbabwean peers only. Given the adverse operating environment there is implied volatility in the ratings. A positive or negative ratings movement could follow a change in capitalisation, asset quality or liquidity.

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