Fidelity bank banner Bayelsa State banner
Ecobank posts heavy loss, share price crashes to 8 years low

By Felix Oloyede on 20/04/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 2,376


Pan-African bank, Ecobank’s shares lost -5 percent to N7.79, lowest since 2009, as it declared N52.6 billion loss for 2016. The bank posted N21.3 billion profit in 2015.

The lender recorded a 22.58 percent increase in its gross earnings to N665 billion last year compared to N542.7 billion it made in the preceding year.

Ecobank’s huge loss during the 2016 financial year was caused by its impairment provision which hiked by 110 percent to N 221.7 billion against N105.2 billion in 2015.

Ade Ayeyemi, the bank’s Managing Director, and Greg Davis, Chief Financial Officer, explained: “Bottom line performance has been impacted by our voluntary adoption of a full impairment charge regarding our legacy loan portfolio, for which a resolution vehicle was set up, the first private sector funded resolution vehicle of its kind in Nigeria.”

Ecobank is to use half of a proposed $400m convertible bond to pay back funding needed for resolution vehicle.

“We are delighted to have very high subscription levels to the issue from existing shareholders, in the region of $300m,” Ayeyemi and Davis further stated.

Nedbank Africa owns 20 percent stake in Ecobank, while Qatar National Bank holds 17 percent.

According to Bloomberg report, Nedbank is planning to decrease the carrying value of its investment in Ecobank from N92.24 billion in December 2016 to approximately N66.85 in March 2017

Nedbank is currently not part of the group of existing shareholders who have indicated appetite for the $300m of this funding as the commercial terms of this convertible bond do not meet Nedbank’s required internal rate of return. (http://stocksng.com)

Source News Express

Posted 20/04/2017 3:12:49 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Don’t leave APGA, Obiano’s aide tells Peter Obi...

FG moves to resolve Aba IPP crisis, mediates...

FG reassures National Theatre arti‎sts, pledges compensation for...

Heavy rainfall displaces hundreds in Yobe

Anambra: Obi flags off reconstruction work on Okpu-Adazi...

Leah Sharibu celebrates 15th Birthday in Boko Haram's...

2015 elections: Balarabe Musa warns Nigerians against Jonathnan,...

Uber Nigeria partners First Bank to offer low-interest...

African youth to African leaders: ‘You must do...

Buhari orders establishment of technical committees on new...

Dino Melaye escapes death in Lokoja •2 killed...

Hurricane sweeps through The SUN . . ....

 

Latest News Oshiomhole, 19 others elected at APC Convention World Cup: Football fan slips into coma while celebrating Super Eagles’ victory APC Convention: Drama as Oyegun’s security detail barred from Eagle Square HURIWA to world leaders: Intervene and stop crackdown on opposition in Nigeria Ekiti Guber: INEC, APC preloading card readers — Fayose Suspected herdsmen kill 18 in Adamawa village APC National Convention: Gov. Sani-Bello optimistic of peaceful, rancor-free exercise Prophet to Obasanjo: Seek forgiveness over June 12 Cholera: 24 new cases recorded in Adamawa APC loses members to PDP in Edo Lai Mohammed faults CPJ, says no journalist is in detention in Nigeria NHRC must push for quick investigation into Bukhari’s murder, end to impunity — SAMDEN

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (352,953 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (352,771 views) Shameless Genevieve Nnaji exposes breasts in public (280,880 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (230,543 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (209,382 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (209,301 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (182,186 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (164,376 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (154,107 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (148,971 views) Lagos plane crash: Journalist releases victims’ names (144,146 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (135,875 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (50) Business & Economy (3,266) Business Verdict (44) Columnists (871) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (507) Features (607) Global Business Monitor (284) International (2,050) Interview (155) Live Commentary (28) Love Matters (124) News (36,439) Opinion (1,005) Pidgin (10) Politics (5,322) Religion (772) Sports (1,560) Stock Watch (30) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Nigeria vs Iceland 2-0 All Goals & Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement