Profit of Ecobank Transnational drops 28%

Ecobank Transnational Incorporated (ETI) posted a profit after tax of $82 million for the first quarter of 2016.

This is, however, a US$35 million decrease as against the US$126 million recorded in the first quarter of 2015.

The year-on-year percentage decrease for the same period under review also stood at 28 per cent.

The Group Chief Executive Officer of ETI, Mr Ade Ayeyemi, made this known when the bank took its turn at the Facts behind the Figures series on the Ghana Stock Exchange in Accra on Thursday.

Additionally, the company’s net revenue decreased by six per cent, with the first quarter of 2016 recording $502 million as against the $534 million recorded within the same period last year.

Forex impact 

In his presentation, Mr Ayeyemi indicated that the fluctuations of the local currencies of Ghana, Cote d’ Ivoire and Nigeria against the dollar in the period, impacted negatively on the general operations of the bank in the sub-region.

That was partly due to the fact that those three countries played major roles as far as the general operations and well-being of the bank were concerned.

He also acknowledged that the bank had large non-performing loans (NPLs) sitting on its books, but was working towards reducing that.

In spite of the challenges, he described them as only short term, assuring of positive returns on the expenditure in the long term.

Strategic plans 

As part of the pan-African bank’s long term strategic plans, Mr Ayeyemi stated that it had outlined some key strategic plans, including organic, revenue and growth.

“Going forward, we shall be focusing more on customers, employees and technology. We are also working tirelessly to enhance an intra-Africa trade as well as ensure a cashless society,” he said.

The Group CEO stressed the bank’s readiness build a stronger and more profitable financial services institution by strengthening its commitment to shareholder value creation.