Skip to main content

Ecobank profit drops by 26%

Stanley Opara
Ecobank Transnational Incorporated Plc has announced a drop of 26 per cent to $151.3m in its group profit before tax for the 2017 half year.
Its profit after tax also dropped by 19 per cent to $123.4m.
In naira terms, the bank said its PBT and PAT rose respectively by 11 per cent and 21 per cent, to close at N46.2bn and N37.7bn, accordingly.
The bank's gross earnings declined by six per cent to $1.3bn, as loans and advances to customers went up by two per cent to $9.5bn.
Commenting on the result, the Group Chief Executive Officer of the bank, Ade Ayeyemi, said, "Our audited half year results demonstrated the benefits of our diversified business model. Despite a fragile macroeconomic backdrop in most of our markets, we still generated a 15.6 per cent return on tangible equity and further improved our cost-to-income ratio to 60.6 per cent, driven by our continued cost reduction initiatives across the network.
"Our revenues increased five per cent in constant currency, and highlighted encouraging growth in our trade and FICC businesses, thanks to encouraging client activity and improving foreign-exchange markets. Profit before tax, however, fell 20 per cent in constant currency, due to continued provision building and elevated cost-of-risks as we had earlier communicated."


Comments

Post a Comment

Popular posts from this blog

Banks face new compliance pressures as IFRS 9 deadline looms

The banks are facing tighter regulatory pressures as they prepare to meet International Financial Reporting Standards 9 (IFRS 9) deadline, according to analysts. The implementation on IFRS strongly affects the way credit losses are recognised in the balance sheet and profit and loss (P & L) statement. While impairments are currently based on “incurred losses”, IFRS 9 introduces an approach based on future expectations, namely expected losses (EL). The main impact on banks is the need to recognise EL for all financial products, and at individual and grouped-asset levels. Banks will have to update their calculation at each reporting date to reflect changes in the credit quality of their assets. This will significantly increase the number and frequency of impairment quantifications that must be undertaken and the amount of data that must be processed for such purpose. At an event, Panelists said that IFRS 9 introduces changes to the classification, measurement and impairme...
Post a Comment
Read more

How CBN Pumped $9.96Bn to Save FX Market in 6 Months

The Central Bank of Nigeria (CBN) has injected $9.964 billion into the inter-bank segment of the foreign exchange (forex) market since it commenced its aggressive interventions in February this year, according to Thisday compilation. The intervention has helped to ease pressure on Nigeria’s forex market, with a view by the Central bamk of Nigeria to narrow and converge the Naira rate at both parallel and official market rates. According to Thisday, between February 21 and August 21, the CBN sold the greenback to authorised dealers in 44 sessions. A breakdown of the dollar sales showed that $680 million was pumped into the market in February, $1.542 billion was sold in March, $1.616 billion in April, $2.102 billion in May, and $1.631 billion in June.  Also, while the central bank offered $1.639 billion to banks to sell to their customers in July, as of August 21, it had sold a total of $754 million. The $2.102 billion sold by the central bank in May remains the highest in...
Post a Comment
Read more

Mega companies that started from nothing

In the 21st century corporate world, a good number of new big businesses entered into the marketplace as a result of extensive research, careful planning, strategic alliances and investments. Business Angels, Venture Capitalists, and the big money bags came together with ideas and models that are largely based on decades of experience and expertise and they work to maximize profits. There are still companies, people and entrepreneurs however that start their own successful companies from the scratch with little or no experience and little or no money, “Rags of Riches” yes! That's what they are, stories of unique brands, started by unique individuals that does not only have accumulated  wealth and vast market share, but have created their own niche and never looked back. Ebay The first item to ever sell on eBay (then AuctionWeb) was a broken laser pointer, by the French born Iranian immigrant and eBay founder, Pierre Omidyar. The transaction closed in September of 1995, not...
Post a Comment
Read more