Annual Report 2007 - Investing In Africa

Annual Report 2007
Notes to the Consolidated
Financial Statements (continued)
9. Income Tax Expense
Year ended 31 December
2007 2006
US$'000
US$'000
Current tax 42,514 41,567
Deferred tax (Note 27) 9,120 1,367
51,634 42,934
Further information about deferred income tax is presented in Note 27. The tax on the group's profit
before tax differs from the theoretical amount that would arise using the basic tax rate of the parent
as follows
Profit before tax 190,570 129,299
Tax calculated at local tax rates applicable
to profits in the respective countries 68,520 46,490
Income not subject to tax (18,150) (10,204)
Expenses not deductible for tax purposes 1,264 7,507
Utilisation of previously unrecognised tax losses (859)
Income tax expense 51,634 42,934
Under the Headquarters Agreement between Ecobank Transnational Incorporated (ETI) and the Republic
of Togo signed in October 1985, ETI is exempt from tax on all its income.
10. Earnings Per Share
Basic
Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the
company by the weighted average number of ordinary shares in issue during the year, excluding the
average number of ordinary shares purchased by the Company and held as treasury shares
Profit attributable to equity holders of the Company 107,373 69,350
Weighted average number of ordinary shares in issue (millions) 1,347,034 1,253,709
Basic earnings per share (expressed in US$ cents per share) 7.97 5.53
Diluted
Earnings per share are diluted by the potential shares arising
from the share option scheme. The dilutive earnings is
calculated by adjusting the weighted average number
of ordinary shares to assume conversion of all dilutive
potential ordinary shares.
Weighted average number of shares under option plan 1,392,624 1,253,709
Dilutive earnings per share (US cents) 7.71 5.53
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