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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.

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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)

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.

(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 is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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    Spotlight Stories

    Tip Jar, Twitter’s new giveaway feature that lets users send money to you

    Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

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    US Elections: Twitter, Facebook suspend several news accounts

    Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

    According to the blog post, “Tip Jar is an easy way to support the incredible voices that make up the conversation on Twitter. This is a first step in our work to create new ways for people to receive and show support on Twitter – with money.”

    The new feature utilizes different payment platforms like PayPal, Venmo, Patreon, CashApp, and others.

    Users can link their Twitter accounts with Tip Jar to any of these payment providers. Twitter takes no cut.

    READ: Facebook is creating an audio chat product similar to Clubhouse

    You’ll know an account’s Tip Jar is enabled if you see a Tip Jar icon next to the Follow button on their profile page. Tap the icon, and you’ll see a list of payment services or platforms that the account has enabled. Select whichever payment service or platform you prefer and you’ll be taken off Twitter to the selected app where you can show your support in the amount you choose.

    Twitter has released series of features this year as part of its efforts to grow Twitter’s user base to 315 million daily active users by the end of 2023.

    The company also launched Twitter crop where images don’t get crop again on Twitter for Android or iOS. Standard aspect ratio images (16:9 and 4:3) will now display in full without any cropping and images will look just like they did when you shot them.

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    READ: Does YouTube stand a chance against TikTok?

    Lauren Alexander, a Twitter spokesperson said, “Today’s launch is a direct result of the feedback people shared with us last year that the way our algorithm cropped images wasn’t equitable, The new way of presenting images decreases the platform’s reliance on automatic, machine learning-based image cropping.”

    Twitter has tested several features and more will be rolled out soon.

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    Business

    Customs Apapa Command generates revenue of N65.4 billion in April

    This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

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    Border closure: Amid N5bn daily revenue, Customs officials lament allowance slash  

    The Nigerian Customs Service (NCS) Apapa Area Command has announced a revenue of N65,463,398,355.85 for the month of April—an increase of N25,585,561,139.92 compared to the same period last year.

    This was disclosed by Comptroller Ibrahim Yusuf, Area Controller of Apapa command, in a press briefing on Thursday.

    What Ibrahim Yusuf is saying

    “This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

    In line with the provision of extant laws, trade guidelines, and enforcement of government fiscal policy measures, the command was able to further strengthen its anti-smuggling operations against economic saboteurs through credible intelligence-driven operations.

    READ: Customs revenue rises by N200 billion to hit N1.5 trillion in 2020

    This led to the seizure of 4×40 feet containers laden with unregistered pharmaceuticals (674 cartons of tramadol tablets in 225mg and 120mg, and 805 cartons of codeine syrup in 100ml) at APMT and SIFAX 3 bonded terminal respectively.

    Other items seized in the period under review include: two containers of unprocessed wood and one container of scrap copper wire,” he said.

    He added that the progress the Apapa Command made in the month of April was possible due to the resilience of the officers, citing that the Command had taken steps to ensure efficient revenue collection by creating an enabling environment for legitimate businesses to thrive.

    What you should know

    Recall Nairametrics reported that the Nigeria Customs Service (NCS) Apapa Command stated earlier that it generated a revenue of N159.58 billion in the first quarter of 2021.

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