Connect with us
UBA ads

Business News

Fundamental analysis of Ecobank Transnational Incorporated’s share price

Ecobank Transnational Inc. (ETI) is a leading Pan-African bank, with presence in most parts of West Africa.



Ecobank Nigeria

Ecobank Transnational Inc. (ETI) is a leading pan-African bank, with banking operations in most parts of Africa. As a Pan African bank, ETI mainly operates in the West African region where it serves institutional and retail clients. It also maintains representative offices in China, Western Europe, and the United Arab Emirates.

Ecobank Transnational Inc. is a publicly listed limited liability company. It started operation as a bank holding company around 1985, under a private-sector concept led by the Federation of West African Chambers of Commerce, with the backing of ECOWAS.


Ecobank Transnational’s group stock ownership as of December 2014 include Nedbank Group Limited with 20.7 % holding, Qatar National Bank with 17.4%, Government Employees Pension Fund with 13.8%, IFC Capitalization (Equity) Fund, L.P with 5.4%, International Finance Corporation with 5.2%, Social Security and National Insurance Trust with 4.0%, IFC ALAC Holding Company II with 2.3%, and JP Morgan Bank Luxemburg with 2.0%.

Earlier reports by Nairametrics showed that ETI recorded a 32% growth in profit before tax of NGN146.5 billion for the 2019 financial year. This was up from the N110.8 billion recorded in 2018. Profit after tax stood at NGN 99.5 billion, even as total assets went up by 5% to close at NGN 8.6 trillion.

(READ MORE: COVID-19: Ecobank Launches “StaySafeNigeria” media campaign)

GTBank 728 x 90

The bank had also reported gross earnings of NGN 842.5 billion, which went up by 9% against the figures for the previous year.

However, the company is trading at its all-time low. It has recorded a loss of 20% on the Nigerian bourse since its 2019 performance results came out. On April 8, ETI had a market capitalization of about N108.8 billion.

In addition to not offering its investors dividends, Ecobank’s shares do not bring any capital gains on the Nigerian Stock Exchange. Its value has declined by over 70% since the 1st of January, 2015.

Deal book 300 x 250

(READ MORE: COVID-19: Ecobank commits about N100 million to national radio campaign “StaySafeNigeria”)

This bearish trend had been partly due to no dividend distribution planned for the 2019 financial year. This is the fourth year in a row without shareholders getting neither bonus nor dividend.


On the technical side, Ecobank had boosted its profitability with higher gains on assets and shareholders’ equity. A look at its Price to Book Ratio shows a reading of 0.1906 (the smaller the result the better, as a value of less than 1 shows the stock is undervalued).


In addition, a look at the daily chart reveals a bullish candle engulfing the inverted spinning top, trading at a value of N4.40 as of 8th April 2020. On the mid-term and long-term, the pattern confirms a bullish bias forming.

Olumide Adesina a French-born Nigerian, is an Investment Professional at Nairametrics Financial Advocates, owners of Olumide Adesina is a certified Investment trader, with more than 14 years of working experience. His work experience covers trading commodity derivatives and analysis of global equities, currencies, commodities, cryptocurrencies, and Fixed Income instruments. A member of the Chartered Financial Analyst Society. You can follow Olumide on twitter @tokunboadesina and email via



  1. Akuh Bernard

    April 9, 2020 at 9:03 am

    I like your contributions.

  2. Anonymous

    April 20, 2020 at 10:21 pm

    I have the annual report in front of me. Your values are in direct contradiction. Check again

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Economy & Politics

CBN reacts to videos, pictures of new N2,000 and N5,000 in circulation

The videos and pictures of the purported circulation of the N2,000 and N5,000 banknotes as false, a piece of fake news that is being pushed out to the members of the public and asked them to disregard the falsehood.



Mobile money loan CBN Governor, CBN, Three PSBs get Apex Bank’s provisional to commence operations, Milk Import: Experts advise CBN on FX restriction , CBN automates trading system, introduces electronic form to facilitate exports , CBN campaigns for Made-in-Nigeria products 

The Central Bank of Nigeria (CBN) has reacted to the circulated videos and pictures that claimed it had introduced N2,000 and N5,000 banknotes to members of the public.

The apex bank in a statement described the videos and pictures of the purported circulation of the N2,000 and N5,000 banknotes as false and a piece of fake news that is being pushed out to the members of the public and asked them to disregard the falsehood.


Going further, they asked the members of the public to report to law enforcement agencies if they found anyone in possession of such banknotes.

This was disclosed by the Central Bank of Nigeria in a tweet post on its official twitter handle on Sunday, May 31, 2020.

The CBN stated, ‘’Videos and pictures of purported circulation of N2,000 and N5,000 banknotes are false and fake. Members of the public are advised to disregard such falsehood and to report anyone found in possession of such banknotes to the law enforcement agencies’’.

GTBank 728 x 90

It would be recalled that the planned introduction of the new N2,000 and N5,000 banknotes by the CBN under the leadership of the then Governor, Lamido Sanusi, in 2012, had elicited some mixed reactions from some experts.

The Federal Government at that time said that the proposed N5,000 banknotes will not be for mass circulation, but would only be reserved for banks and heavy cash users.

Continue Reading

Business News

UPDATED: CBN revises timelines for resolution of dispense errors, refund complaints

The apex bank said this is in line with its resolve to enhance the quality of service bank customers are given. Nigerian banks are, therefore, required to implement the revisions starting from June 8, 2020.




The Central Bank of Nigeria, CBN, has revised the timeframes for the resolutions of all botched online transfers, POS transactions, and ATM withdrawals.

According to a brief statement that was posted on its official Twitter handle this evening, the apex bank said this is in line with its resolve to enhance the quality of service bank customers are given. Nigerian banks are, therefore, required to implement the revisions starting from June 8, 2020.


Below are the revisions

In line with the revisions, any failed ATM transaction that occurs when a customer tries to withdraw from their bank must be reversed instantly. In the event that instant reversal fails due to technical challenges, the money must be manually reversed within a 24-hour period. Note that prior to the revision, the timeframe for such reversal is usually three working days.

Similarly, the resolutions for failed ATM withdrawals occurring when bank customers use their ATM cards on other banks should not exceed 48 hours, the CBN said. Before now, such a resolution would normally take three working days.

GTBank 728 x 90

Also, starting from June 8, banks will be required to resolve all disputed/failed online transfers and POS transactions within 72 hours. In other words, resolution for such disputes shall no longer be taking five working days as it used to.

In the meantime, the apex bank advised banks to ensure that all pending failed transactions/complaints are resolved “within two weeks starting June 8, 2020”.

“Meanwhile, key service providers in the Nigerian payments system have also committed to establish an integrated dispute resolution platform for the industry and enhance their payment system infrastructure and processes to reduce incidences of transaction failure,” the statement further disclosed.

Continue Reading

Tech News

Why Nigeria must invest in digital technology – El Rufai

Nigeria needs to look for a way to move from the agrarian and industrial into the services sector, and ICT is a way to do that.



El-Rufai: How Vodafone recorded its ‘biggest’ investment mistake in Nigeria, FG concludes plan to borrow N2 trillion from Pension Fund, Infrastructure: Tapping into pensions funds - a step in the right direction? 

If Nigeria is to join the richer countries of the world, she must invest aggressively in technology, improve local production, and cut cost of governance.

These were some of the opinions presented by experts during a virtual colloquium tagged Government Unusual: Innovative Economic Solutions to Unlock Mass Prosperity held on Saturday afternoon.


While making a presentation at the Rauf Aregbesola colloquium, Governor Nasir El Rufai noted that investment in digital technology must become a priority if Africa hoped to join the league of developed countries. He said,

Investing aggressively in digital technology is the only way Africa can preserve its growth and continue to lift people out of poverty. We must invest in the digital because henceforth, every sector of governance and living will depend on the digital.

READ ALSO: FG sets committee to support tech start-ups with affordable internet access amid lockdown

GTBank 728 x 90

He added that one of the lessons from the COVID-19 pandemic was the need for Nigeria to embrace technological advancement so that Nigerians could benefit from the numerous opportunities that came with it; and pointed at the recent decision to crash right of way charges as the first way to go.

In agreement with his position, CEO Lotus Capital, Mrs Hajara Adeola, added that investment in technology was the best way to get Nigerian youths to take advantage of global opportunities without migrating to other countries.

Nigeria needs to look for a way to move from the agrarian and industrial into the services sector, and ICT is a way to do that. Our youths are innovative and capable, so if we can train our youths in technology, then we can get homegrown solutions to some of our issues without them having to migrate” she said during the panel discussion.

Infrastructure for business

Unless infrastructural developments are shaped and directed towards business developments, the country will continue to invest in infrastructure which have no benefits.


“You don’t shape infrastructure as how you think it makes sense. you do it in a way that follows the money because ultimately that is where prosperity comes for everybody,” Chairman of Citibank Nigeria limited, Yemi Cardoso said.


The global terrain continues to change and Nigeria must develop a framework to align its growth strategy with the changes, identifying and eliminating bottlenecks as we go forward.

The colloquium, which was held online (via zoom), had over 700 participants across several countries, and was also streamed live on Youtube.

Panelists at the colloquium were Mallam Nasir El-Rufai, Governor, Kaduna State; Sen. Abubakar Bagudu, Governor, Kebbi State; Mrs. Hajara Adeola, CEO, Lotus Capital Limited; Mr. Bismarck Rewane, CEO, Financial Derivatives; Dr. Joe Abah, Country Director, Development Alternatives Incorporated (DAI); Dr. Yemi Cardoso, Chairman, Citibank Nigeria, and Boason Omofaye, the Moderator.

Dr Yemi Kale, Statistician General of the federation and CEO of the National Bureau of Statistics (NBS) was also present.

Continue Reading