GTB 737 banner Yudala 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

Views: 1,236


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


 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

 

You may also like...
Buhari pledges to build resilient Nigerian cities

Nigerian doctors declare indefinite nationwide strike

AMCON transfers ownership of Mainstreet Bank to Skye...

UNICEF charges media on improved reportage of water...

Osun Stakeholders hold summit to improve financial downturn...

MTN eyes radio frequency spectrum licence, sells more...

Okowa congratulates Osinbajo, Onnoghen

Senate screens Onnoghen for CJN position tomorrow

Nollywood undergoing revolution — Edochie

LASU VC barred from campus, convocation postponed

DPR seals 200 fuel stations, 25 depots in...

BREAKING: Popular blogger Chris Kehinde Nwandu (CKN) granted...

 

Latest News Join digitisation revolution or lose out, PR expert warns media players FG gets 14 days ultimatum to publish names of looters NAF set to commence local fabrication of aircraft parts Ikpeazu promises N10m for films shot in Abia FG disburses N380m loan to Abia MSMEs Adesina donates US $250,000 World Food Prize money to young African farmers, agripreneurs FG begins payment of pensions to ex-Biafra police officers I love Anambra State — Buhari U.S. Appeals Court stops teenage girl’s attempt to abort baby Promotion galore in the Nigerian Army •57 Majors and 66 Lieutenant Colonels among beneficiaries Davido’s men open up on Tagbo’s death •Why they dumped his body in the hospital and fled Troops ambush Boko Haram fighters; kill 3, recover weapons

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (287,671 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (270,323 views) Shameless Genevieve Nnaji exposes breasts in public (218,302 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (183,703 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (179,457 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (162,134 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (140,548 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (128,711 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (123,620 views) Lagos plane crash: Journalist releases victims’ names (114,145 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (112,143 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (104,504 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (30) Business (2,729) Business Verdict (24) Columnists (757) Complaints & Requests (93) Enterprise & Opportunities (183) Entertainment (396) Features (497) Global Business Monitor (187) International (1,582) Interviews (134) Live Commentary (28) Love Matters (79) News (29,504) Opinion (826) Pidgin (8) Politics (3,988) Religion (645) Sports (1,338) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN Words on marble

 

 

#MonkeyPox outbreak

 

APO Group Partner

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!