ECOBANK Transnational Incorporated Plc has filed its audited reports for the year ended 31, December, 2015 indicating a profit after tax decline of 68% to N21.3 billion from N65.7 billion in 2014.
Though, profit before tax was also down 53 % to N40.6 billion from N86.4 billion in the previous year, revenue for the group increased by 11% to N542.7 billion, while total assets for the group was up 4% to N4,694.3 billion. Deposits from customers also grew albeit marginally by 1% to NGN 3,274.0 billion.
Other extracts from the financial statement showed that loans and advances to customers was down 2% to N2,232.2 billion while operating profit before impairment losses decreased by 11% to N146.0 billion as Total equity grew by 2% to N502.9 billion.
The group’s management has proposed a 0.2 US cents as dividend to its shareholders for the year with payment date scheduled for 2nd August 2016, two weeks after the AGM’s Date of 17th June 2016, to be held in Lomé, Togo.
The company noted that shareholders will be paid the naira equivalent of proposed dividend using the closing exchange rate as of 31 December 2015 which is about 40 kobo per share.
The Group CEO Ade Ayeyemi said: “Our 2015 results were disappointing. We did a comprehensive review of our processes and portfolio leading to elevated impairment charges in the fourth quarter. Impairment losses were significantly increased by $265 million to $532 million. This was unacceptable to us, and we have taken drastic steps to address asset quality and strengthen our processes. Also, we were faced with a difficult operating environment due to the slowdown in economic growth across Africa, as a result of lower commodity prices. These developments affected both households and businesses. Our cost-income ratio was 64.9%, flat compared to prior year.
“Our diversified business model is a source of competitive strength and stability. In the last few months, management and I have worked to revise our strategy and operating model around our customers, our products, and our geographical footprint. We have made some management changes and developed a strategic plan aimed at ensuring we generate sustainable long-term performance.”

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