Ecobank Transnational Incorporated (ETI) on Wednesday released its Condensed Unaudited Consolidated Financial Statements For the period ended 30 June 2020. The decline in profit which the group reported in the first quarter of the year extended to the first half financial performance.
The group’s Gross earnings was down by 3% to N392.013 billion (down 7% to $1,040.9 million) while in H1 2020 from N405.201 billion in the same period in 2019, profit for the period, declined by 18% to NN48.535 billion (down 22% to $128.9 million) from N59.491 billion. Basic earnings per share from continuing operations attributable to owners of the parent during the period declined to 136.44kobo from 176.55kobo in 2019.
Major component of the earnings were the Interest income – N257.785 billion, fee and commission income – N76.062 billion, net trading income – N51.254 billion, and other operating income – 6.489 billion.
Whereas major components of the expense section is Interest expense – N96.373 billion, fee and commission expense – N4.904 billion, staff expense – N85.612 billion, Depreciation and amortization – N17.964 billion, other operating expenses – N82.490 billion, Impairment charges on loans and advances – N49.852 billion, Impairment charges on other financial assets – N5.184 billion.
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Total assets rose by 9% to N9.392 trillion from N N8.622 trillion due to increases in cash and balances with central banks, trading financial assets, Loans and advances to banks and Treasury bills and other eligible bills among others.
On the liability segment, total liability rose to N8.649 trillion from N7.934 trillion. Deposits from banks rose to N849.330 billion from N805.109 billion in H1 2019. Deposits from customers increased by 9% to N6.461 trillion from N5.925 trillion. Borrowed funds rose to N788.334 billion from N756.752 billion in 2019.
Total equity rose by 8% to N742.735 from N687.742 billion. The retained earnings and reserves rose to N219.323 billion from N185.038 billion
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ETI recorded negative net cash flows in Operating activities (-N109.732 billion), negative net cash flows in investing activities (-N39.235 billion), and negative net cash flow from financing activities (-N48.491 billion).
ETI repayment of borrowed funds within the period amounted to N116.173 billion. However, cash and cash equivalents at end of the period remained positively strong at N750.478 billion due to N933.546 cash and cash equivalents at beginning of period.
ETI is into the business of providing banking and financial services through its subsidiaries and affiliates. The share price declined by 2.35% to N4.15 per share at the close of trading on Wednesday as investors seem to be displeased by the financial reports.
YTD the share price is down by 36.15% while in 2 years and five years it has lost 80.05% and 79.25% of its value respectively.
Written by;
Ifunanya Ikueze
