Ecobank Transnational Incorporated (ETI), the Lome-based parent company of the Ecobank Group, has alerted investors that it expects to report materially lower profit for the year ended 2015.
In a profit-warning statement released at the Nigerian Stock Exchange (NSE), ETI said its low performance in 2015 was due to several macroeconomic challenges faced by most African economies including lower crude oil prices, depreciating currencies and monetary and fiscal bottlenecks, all which negatively impacted revenue growth.
“Thus, revenue growth for 2015 will be below our target guidance,” ETI stated.
The holding company noted that it recorded higher impairment losses on loans which were recognised in the last quarter of 2015 across its loan portfolio also affected profitability.
“As a result, our revised growth targets communicated during our third quarter 2015 analysts and investor conference call for deposits and loans will not be achieved. We also expect our efficiency and asset quality metrics to be worse than targets,” ETI stated.
ETI said with these challenges, it expects full year 2015 profit in US dollar terms to be lower than the nine-months to 2015 reported profit.
Ecobank stated that it plans to announce its audited financial results for full year 2015 in April.
“Ecobank remains confident in its diversified business model and the long-term prospects for growth in Africa and share equal confidence in our dedicated staff. We are positioning the company for long-term success to achieve sustainable good results. ETI continues to enjoy the support of its major shareholders,” ETI reassured.
It assured that it has been implementing key initiatives to strengthen its credit risk management processes. ETI’s share price recorded the highest loss of 9.72 per cent to close at N16.26 per share.
ETI is the fourth bank to issue profit warning, following on the footsteps of FBN Holdings, Diamond Bank and FCMB Group.
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