Ecobank Transnational Shareholders Ratify $48.2million Dividend

Shareholders of Ecobank Transnational Incorporated, ETI, have approved a dividend pay-out of $48.2 million at two cents per share earlier declared by the bank.

The approval was given at the pan-African bank’s annual general meeting, which took place in Lome, Togo, over the weekend.

The bank posted a plunge of 68 per cent in profit after tax (PAT) for the year ended December 31, 2015 in line with its warning of revenue drop for the period. ETI was among the five banks that sent profit warnings to the capital market community that revenue growth would be lower than expected due to a combination of low oil prices as weaker currencies hampered economic performance across the continent.

The audited results of the bank showed that profit before tax (PBT) declined by 53 per cent from N86.4 billion in 2014 to N40.6 billion in 2015. PAT dipped by 68 per cent from N65.7 billion to N21.25 billion.

The Group Chairman of ETI head office in Lome, Mr. Emmanuel Ikazoboh, who spoke at the AGM said: “Our financial results were poor and clearly not representative of the earnings potential of our diversified pan- African business model.”

“Ecobank reported diluted earnings per share of $0.28, a fall of 83 per cent compared with the $1.69 reported in 2014. Return on total shareholders’ equity was 4.2 per cent in 2015 versus 16.5 per cent the prior year. Profit attributed to shareholders of ETI amounted to $66 million compared to $338 million in 2014.”

On dividends, he said: “I am happy to report that in light of the improvement in the parent company’s profit which increased from $5.8 million in 2014 to $60.8 million in 2015, the board has recommended a total cash dividend of $48.2 million, which translates to a dividend of $0.2 per ordinary shares for the 2015 financial year.”

The board passed a resolution that a nominal value of the ordinary shares of the company be increased from 2.5 US cent per share to 50 US cent per share.