Databank: The most respected company in Ghana
It all began with a yearning to come back home and do something that would be enduring and rewarding both financially and spiritually.
Ken Ofori-Atta, Keli Gadzekpo and James Akpo, three young smart, fast track Ghanaians successfully plying their trade in the late eighties, Ken on Wall Street, Keli with KPMG in Washington D.C. and James a newly minted MBA graduate hatched the idea of returning home and starting an investment banking firm.
This was at a time in Ghana when very few people knew and understood the rubrics of investment banking while the finance industry was undergoing some challenging transformation. What seemed a daunting challenge was an opportunity to be the first in a market undefined and in a state of flux.
In 1990 Euromoney, the prestigious financial reporting publication made the comment that "…Databank was ahead of its time". In the words of Ken Ofori-Atta (Executive Chairman of Databank), "we were young, excited, energetic, precocious, knowledgeable and committed". By 1990, the three young men set up shop in a small room in the UTC building in Central Accra with a short-term loan of US$25,000.
When Databank was incorporated in 1990, the focus was on research and the compilation and collation of research data for the financial sector and the development of the capital market in particular. As good as it sounded, the beginning was not at all a bed of roses and it is interesting to note that right at the outset, the name 'Databank' made some waves as the regulators debated on the appropriateness of allowing 'bank" in the name of a firm that ostensibly did nothing more than give advice and publish research on the financial markets and the economy, not lending money or taking deposits as a normal bank would.
It was indeed interesting to observe the sheer will to succeed against all odds emanating from the dark room office at the old UTC Motors headquarters and Databank staff shuttling around in one beat up old Lada car, many years past its best..
When the Ghana Stock Exchange (GSE) started operations in 1990, Databank was on hand to compute the first indices - the Databank Stock Index (DSI) and the Databank Stock Average (DSA) - used in measuring the performance of the stock market. It is noteworthy that it was not until 1994 that the GSE came out with its own index - the GSE All-Share Index. By the end of 1990, the Databank team comprised five transaction hungry young professionals.
The first real transaction was the initial public offering and listing of Super Paper Products Company but by then, Databank had already established a prestigious reputation of cutting edge quality in stock market, industry and economic research. It was a double edged sword because if truth be told, the quality and objectivity was rather intimidating to a market that was not used to it.
The practices, high intensity and creativity that Databank brought exemplified the Wall Street and Ivy League background of the founders. Apart from setting the pace for financial journalism with the regular features and articles penned by the young professionals at Databank, Finance Seminars were also held on topical issues ranging from Economics to Finance with the twin objectives of informing private sector players and influencing public policy makers. It was quite clear that Databank was destined to play a leadership role in the economy of Ghana.
Today, Databank Research run by Rev. Daniel Ogbarmey Tetteh who joined in 1995 produces the most consistent and comprehensive research on Ghana's macroeconomic environment, budget, stock market and listed companies. Databank Research actually maintains a one-stop critical indicators datasheet for the ECOWAS sub-region. Fund Managers and institutional investors, both home and abroad, rely on the incisive and analytical reports produced by Databank Research.
In addition, Databank Research provides regular and reliable information on financial markets to leading media houses (radio, television, and print media) including internationally acclaimed ones such as BBC, CNN, Financial Times and Bloomberg. They also provide regular economic briefing services for local blue chip companies.
The Databank Africa Desk gives a comprehensive review of African markets and economies. In 2007, Databank Research competed with international heavyweights such as Deutche Bank, UBS, Citigroup, EFG Hermes and African Alliance for the enviable award of the "Best Africa Research Team" at the Ai Index Awards held at the London Stock Exchange and organized by African Investor. In keeping with the leadership tradition, Databank Research towered above the other competing firms as it took home the diadem as the Best Africa Research Team, 2007.
Throughout the early 90s, the company operated as Databank Financial Services (DFS) and its stock in trade comprised research, corporate finance and advisory. But the brand name Databank became widely known as various services were provided par excellence. Run by Opoku Gyamfi Boateng who was one of the first employees and R. Yofi Grant who joined in 1996, today, DFS offers a cocktail of financial advisory services including equity and debt financing, valuations, asset backed securities, mergers and acquisitions.
DFS sponsored the first listed corporate bond on the GSE, a US$35 million mortgage bond shelf offering for Home Finance Company (now HFC Bank Ltd). DFS also was responsible for advising and arranging the first corporate merger on the Ghana Stock Exchange. DFS also advised the Ghana Government during the liquidity crisis that threatened to cripple Ashanti Goldfields Company (now Anglo Gold Ashanti) and subsequent part sale of interests in assets of the Geita Mine in Tanzania. In addition, DFS facilitated and executed a substantial block of SSB Bank shares (now SG-SSB) worth $21 million to a consortium of investors.
Again, DFS was the promoter of the first cross-border listing in West Africa on the Ghana Stock Exchange in a transaction involving Trust Bank Ltd (The Gambia).
DFS were the lead advisors for CAL BANK Ltd.'s IPO in 2004 which was oversubscribed by 430% and the cedi-denominated US$40 million Ghana Telecom bond issue in 2005, which was also fully subscribed. DFS was the lead advisor in the divestiture of Government's interest in WESTEL and co -advisor and co-manager for Ghana's first landmark sovereign bond issue in 2007 which was oversubscribed by over 300%.
By 1994, Databank had begun to spread its name beyond the shores of Ghana and many of the emerging market funds and international investors who had an interest in Ghana used Databank as their eyes and ears on the ground. It was in this year that Databank Brokerage Limited (DBL) was born. DBL currently under the leadership of Patrick Kingsley-Nyinah who joined the team in 1998 took over the securities trading aspect of Databank's business.
The advent of DBL ushered in a new era for the Ghana capital market as it coincided with the real manifestation of international investor interest in our stock market. DBL was as important to domestic investors as it was to international investors eyeing the Ghana market. With internationally recognized partners Robert Fleming & Co. and Blakeney Management of the UK, as well as Ghana Reinsurance and a number of reputable individuals, DBL quickly instituted itself as the Broker of Choice in Ghana with best industry practices comparable to any in the world.
In 1994, DBL structured and executed a landmark transaction on the GSE by packaging and brokering the US $25 million sale of all of Government of Ghana's shares in seven listed multinationals to a consortium of emerging market and offshore institutional investors including Morgan Stanley, Salomon Brothers, Blakeney, George Soro's Quantum Emerging Markets Fund and a number of others.
This groundbreaking transaction introduced foreign investment into the Ghana market. Since then, DBL has not looked back and has had a yearly average of 55% of the secondary market. DBL has executed most of the large trades on the GSE as well as acted as lead managers for significant and successful initial public offerings on the GSE.
Perhaps even more interesting than DBL, was the establishment of Databank Asset Management Services Limited (DAMSEL) in 1996 run by Kwesi Amonoo Neizer who joined in 1993 DAMSEL provides the investment and asset management service of the company. DAMSEL has over the years proved to be a pioneering leader in the Asset Management business in Ghana.
DAMSEL's business includes managing private pension/provident funds, mutual funds and high net worth clients. DAMSEL is the originator and manager of the first licensed mutual fund in Ghana, EPACK. From a modest beginning of an initial GH¢25 from five people in 1996, EPACK has grown to over GH¢100.67 million and over 65,000 investors currently.
EPACK is arguably the leading pan African mutual fund with investments in twelve regulated markets in Africa including Ghana, Nigeria, South Africa, Kenya, Botswana, Morocco, Tanzania, Uganda, Egypt, Zambia, Mauritius and Malawi. In 2007, EPACK was adjudged the Best Institutional Investor at the Africa Investor Award Series a.k.a African Oscars held in Nigeria.
Other firms in that category who were beaten by EPACK included Pan Africa Infrastructural Development Fund, Public Investment Corporation, Risk Capital Facility, Peregrine, and Global Commercial Microfinance Consortium.
DAMSEL is also the originator and manager of the first licensed Money Market mutual fund in Ghana, the Databank Money Market Fund (MFUND) as well as the first licensed balanced fund in Ghana, Databank Balanced Fund. In all, total funds under management in DAMSEL are in excess of GH¢184 million. It is therefore no wonder that Epack won the Best Institutional Investor in Africa in the Ai Awards in 2007 beating other world class private equity funds and investment banking groups.
Today and over the past eighteen years, Databank has emerged as a full-service investment banking firm offering stock brokerage, corporate finance, asset management, equity research and private equity services. The strategic business units are Databank Brokerage Ltd, Databank Asset Management Services Ltd, Databank Financial Services Ltd and Databank Private Equity Limited.
It is inspiring to note that from a small firm operating out of that one room in the old UTC Motors building, Databank now has its own corporate headquarters and three country subsidiaries - Databank Securities Ltd in The Gambia, Sierra Leone and Liberia. The aspiration is to become a true regional player as we extend the Databank tradition of leadership across the sub-region.
Databank Client Services was created in 2004 to cater to the growing needs of an emerging retail business of the Group. The motivation for the creation of DCS is to ensure that the Databank Group keeps faith with our commitment to give gold standard customer service. DCS is headed by Ernest Akore who joined in 2004 from an illustrious banking background in the USA and The Gambia.
That our customers, present and potential, deserve the very best from our staff is not negotiable. In order to support the private sector especially SMEs that have an important role to play in pushing the economic growth agenda of Ghana, Databank has also set up Databank Private Equity Limited (DAPEL) to invest in unquoted companies with significant growth potential.
Some of the companies in DAPEL's portfolio include BUSY INTERNET, arguably the largest cyber café in sub-Saharan Africa, Phyto Riker, formerly GIHOC Pharmaceuticals, Women's World Banking, promoting micro-financing especially for women in business and XDSDATA, a credit reference bureau.
To inculcate the entrepreneurship culture among business students, Databank established a Databank University Entrepreneurship Fund to finance viable business plans developed by students at the University of Ghana Business School (formerly School of Administration).
No doubt, one of the secrets behind Databank's success is its recruitment strategy and caliber of staff. The emphasis is on recruiting the best and brightest, so Databank has an unmatched collection of young, dynamic and well-trained human capital.
This coupled with an infectiously friendly culture and team spirit and a flat organization structure, the work ethic is above par. From initial staff strength of about five people, Databank now provides employment for over hundred (100) people of which approximately 80% are professionals.
The Executive team includes, Ken Ofori-Atta (Executive Chairman), Keli Gadzekpo (Executive Vice Chairman), Yofi Grant (Executive Director and Chairman of Brokerage), Opoku Gyamfi Boateng (Executive Director), Kwesi Amonoo-Neizer (Executive Director), Ernest Akore (Executive Director), Patrick Kingsley-Nyinah (Executive Director) , Oladimeji Adedara (Executive Director), Geta Striggner-Quartey (General Counsel) and Daniel Ogbarmey Tetteh (Executive Director).
Databank is currently headquartered in Accra with branches in Tema, Takoradi and Kumasi and three wholly owned subsidiaries in The Gambia, Sierra Leone and Liberia.
The vision is to emerge as a Regional Investment Bank with a primary focus on asset management and other investment banking services. While Databank provides the whole range of investment banking services, the Group still provides significant economic and financial data to bridge the knowledge gap that exists on economies in Africa to enable investors make informed decisions.
The quality and innovation that Databank brings to bear on the market was underscored as it won the best Securities Brokerage Company in Ghana in the prestigious Euromoney Awards for Excellence for three consecutive years (1997, 1998 and 1999).
A decade after being described by Euromoney as "…A little ahead of its time", the Chieftains of Corporate Ghana have endorsed Databank as the Most Respected Company in Ghana and its Executive Chairman Ken Ofori-Atta as the 2nd Most Respected CEO in Ghana. Needless to say, Databank is keeping up with its tradition of Excellence and Leadership! Does it get any better than that? Well, the refrain you are likely to pick up within the precincts of Databank is "To God be the Glory!!
But it is not all about business only. The Databank Foundation supported by the Databank Group of companies has funded a number of initiatives in education and health and every year supports a Christmas party at the children's' ward of the Accra Psychiatric Hospital.
The Databank Foundation also sponsored the 'My Vision Project" competition in 2007 which saw young Ghanaians challenged to develop their vision for a better Ghana. Beyond that, Databank is very active in capacity building and social responsibility and its officers are regularly seen as panelists, speakers at leadership conferences and committee members of public companies.
Databank's annual Leadership Seminar Series are well acclaimed. Another initiative supported and sponsored by Databank is the Africa Leadership Initiative (ALI). Databank recognizes that the road has been rough and like the famous American saying goes, "Pioneers oft return home with arrows in their backs". Though there are many that have helped along the way, it is God that has brought it all together and thus far. This conviction explains why the headquarters is emblazoned with the words …. "To God be the Glory".
With its core values of Leadership, Excellence, Humility and Integrity, Databank is set to LEap HIgh for the customer at both the retail and corporate ends of the market. So what else can we say? LEap HIgh, DATABANK! The Most Respected Company in Ghana on the move!