NewsExpress advert 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 Share on Google+

Views: 1,846


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

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...
Sokoto, UNICEF to partner on child education, malnutrition...

Rangers FC coach says Nigeria Premier League has...

CBN bans importers of rice, cement, 12 other...

How to manage communication around national crises: A...

NSE market capitalisation up N88bn

GCIOBA holds annual luncheon, challenges govt. on school...

IMPEACHED: Abia Speaker removed, replaced

Rivers APC dismisses guber and Assembly elections as...

Court strikes out Ladoja’s appeal, upholds Ajimobi’s election...

I have no personal problem with Amaechi, says...

ICRC says 2nd Niger Bridge still on track...

Breaking: PSC meets to select new Police Management...

 

Latest News Parents weep as news of rescue of Yobe schoolgirls abducted by Boko Haram turns out to be false Hope not lost on Peace Corps Bill — Senator Ohuabunwa Boko Haram kills 5 in cross border attack, wounds 5 others Dangote to build sugar plants in 6 states Bayelsa threatens to jail parents who refuse to send children to school Experts brainstorm on viability of Science Park in UNN Nigeria needs wealth creators in government, not wealth sharers — Peter Obi UNESCO: One language disappears weekly Corruption in Nigeria getting worse, says Transparency International BJAN signs on Katunga Media for capacity development Surgical sponges left inside woman for at least 6 years FG invites constructive criticism, restates commitment to press freedom

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (326,225 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (317,938 views) Shameless Genevieve Nnaji exposes breasts in public (254,706 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (208,906 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (194,745 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (187,705 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (163,402 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (146,705 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (140,388 views) Lagos plane crash: Journalist releases victims’ names (129,565 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (128,050 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (123,130 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (34) Business (2,901) Business Verdict (34) Columnists (805) Complaints & Requests (94) Enterprise & Opportunities (203) Entertainment (446) Features (549) Global Business Monitor (226) International (1,799) Interviews (143) Live Commentary (28) Love Matters (105) News (33,045) Opinion (884) Pidgin (10) Politics (4,512) Religion (681) Sports (1,438) Stock Watch (28) AMA & Al Jazeera Global Update

 

 

Football president George Weah puts Liberian army to the test

 

APO Group Partner

 

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!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement