ETI Plc Meets to Consider Reduction Size Of The Board Of Directors

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From Benjamin a ameh, Lagos

 Ecobank Pan African has Mission and vision of dual objective to build a world-class pan-African bank and to contribute to the economic and financial integration and development of the African continent.

Meanwhile, the recent ETI’s unaudited nine months financial performance as at September 30, 2013 showed that its profit before tax increased to $299 million, representing a 56 per cent improvement over the comparable period last year.

According to the statement made available to the capital market community through the floor of the NSE showed the revenue grew by 24 per cent to $1.456 million, while total assets went up by 16 per cent to $21.5 billion. While bank’s gross earnings grew to $1.45 billion in period under review, from $1.17 billion last year and customers’ deposit recorded a 69 per cent increase in net customer loans and five per cent.

Fitch Ratings Agency recently issued statement on the bank’s Long-term issuer Default Rating (IDR) which was affirmed ‘B’ means a stable Outlook, Short-term IDR at ‘B’, Viability Rating at ‘5’ and Support Rating Floor at ‘No Floor’ which analysts attributed the financial performance to increasing non-profit revenue which led by trade finance activity.

In the same vein, sometimes ago, ETI Group notified the capital market community through The NSE that it has signed a loan agreement with PROPARCO for a USD 50m loan facility with a 10-year maturity.

It was revealed in the reports that the loan will allow Ecobank to strengthen its long-term resources and will support the development of its local banking network. Indeed, the Group has become the first pan-African banking group to have an integrated regional banking network in sub-Saharan Africa. PROPARCO is a Development Finance Institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South.

It was further pointed out that AFD is an active player in banking consolidation in the region and will allow Ecobank to strengthen its operational capacities and its role in developing the local economic base, particularly for small and medium-sized enterprises.

According to report the transactions has taken place against a background of fundamental changes in Africa’s banking sector.  As Pan-African banking groups as Ecobank developing alongside traditional players and are entering new market segments, targeting those previously excluded from the banking system.

The report noted that the management of bank are opening more branches and are providing innovative and low-cost services tailored to communities who lack access to banking services. These groups are driven by economic growth, which is gathering pace in Africa, and their activity is increasing steadily.

Bright Future Prospects
There are bright prospects in the ETI, which shareholders have the opportunity to share from considering the phenomenal banking franchise and the on-going Africa growth story. sometimes ago, Moody’s Investors Service analysts expect economic growth on the continent to average between five per cent and six per cent “over the coming years,” putting the region among the best global performers.

ETI’s presence in 34 African countries is well placed to facilitate the growing cross border in Africa.

It is on record that the ETI’s shareholders have enjoyed significant capital gains as the share price has risen by 22 per cent from January to last Monday. The stock closed trading at N13.80 has a price to book ratio of 0.52, making the shares cheap relative to other banking stock.
Also management have moved to boost its earnings and deliver good returns going forward, in August, created a new division, the development finance department, set up to provide microfinance loans to small businesses.


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