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: 2,852


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

 

You may also like...
Civil servant returns N1.7m excess salary

You can’t rewrite history, Okonjo-Iweala tells critics of...

Micro Pension will guarantee the future of Nigerians...

UNICEF Nigeria welcomes release of over 180 children...

Jonathan’s govt. fair to the South-East —Obi

PPA calls for council election in Anambra

Africa’s First Content Marketing Conference to hold in...

Oil companies given 2 weeks to quit Niger...

NJC holds emergency meeting over crackdown on judges...

Actualisation of Biafra impossible --Buhari

Mass Wedding: Catholic priest sponsors 136 couples in...

Ekweremadu laments surprise police raid of Abuja house...

 

Latest News APC mulls automatic tickets for National Assembly members We’re still being kidnapped, Igbo traders in Cross River cry out FG recalls Paris Club refund for 5 states •The affected states Osun Guber Poll: Declare PDP winner to avert national crisis, Secondus tells INEC •Cries blue murder Salary Arrears: Bayelsa Government assures workers of full payment Akwa Ibom royal fathers reiterate support for Governor Emmanuel APC Congresses fraudulent — Oshiomhole Some lawyers forge court judgements in bid to get SAN rank — CJN No going back on direct primary, says Lagos APC leaders Teen rescued after 49 days adrift at sea Oyetola denies rift with Aregbesola, commends Osun electorate Gas flaring: FG to revoke licences of oil companies

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (397,005 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (377,009 views) Shameless Genevieve Nnaji exposes breasts in public (308,866 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (250,832 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (232,529 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (221,768 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (200,288 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (181,799 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (165,941 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (163,496 views) Lagos plane crash: Journalist releases victims’ names (158,311 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (147,007 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (63) Business & Economy (3,628) Business Verdict (52) Columnists (933) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (547) Features (653) Global Business Monitor (301) International (2,434) Interview (165) Live Commentary (28) Love Matters (144) News (39,126) Opinion (1,111) Pidgin (11) Politics (6,744) Religion (873) Sports (1,706) Stock Watch (34) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Anthony Joshua vs Alexander Povetkin: Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement