Ecobank Transnational Incorporated Shareholders criticize board for 600% drop in profits

ETI profits dropped from 338 million dollars in 2014 to 66 million dollars in 2015, representing close to 600% drop.

  • Published:
Ecobank Transnational Incorporated play

Ecobank Transnational Incorporated

24/7 Live - Subscribe to the Pulse Newsletter!

Shareholders of Ecobank Transnational Incorporated, parent company of Ecobank subsidiaries across Africa, have heavily criticized the board of the company for the massive dwindle in profits in 2015.

ETI profits dropped from 338 million dollars in 2014 to 66 million dollars in 2015, representing close to 600% drop.

The board blamed the slump on the economic challenges suffered by countries on the African continent in 2015, with commodity prices taking a major plunge.

Inflation in most African economies, for example, increased in 2015 with about 5 countries experiencing their worst inflation rates in history.

Meanwhile the board has withdrawn a proposal to raise 700 million dollars through right issues. It is unclear why the board’s decision to reverted plans to present the proposal at its extra-ordinary general meeting held in Lome during the weekend.

Management attributed the withdrawal to prevailing unfavourable conditions.

It is, however, believed that management and the board suspected that the proposal will be thrown out by shareholders, given the level of displeasure over the bank’s poor performance in 2015.

READ MORE: In Nigeria Ecobank sacks 1,040 workers

The money was supposed to be used for recapitalizing Ecobank branches across Africa, as well as to  further expand the bank across Africa.

Group Chief Executive of Ecobank Transnational Incorporated, Ade Ayeyemi believes the bank can do without the funds.

“There is no need for investors to worry, there is no cause for alarm. We manage this business in a prudent manner and we will hold appropriate capital. We don’t want to hold capital that will just be sitting in our vaults and not put to proper use”, he said.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Poverty Gap Ghana’s policies make the rich wealthier – UNbullet
2 In Upper East 2 men killed in daylight bank robberybullet
3 SSNIT Scandal 10 SSNIT staff with fake certificates dismissed –...bullet
4 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
5 Menzgold Ghana Investment company closes down its Gold Vault Marketbullet
6 SSNIT Scandal Ernest Thompson denies knowledge of PWC auditbullet
7 $72m SSNIT Saga Ernest Thompson, 4 others charged with...bullet
8 Salaries In 2018 Here are the dates public workers will be...bullet
9 SSNIT Scandal SSNIT spent $140m on ‘partially...bullet
10 Microfinance Finance Institutions BoG to take action...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Money Alert Meet Africa's richest womanbullet
3 Bozoma Saint John 10 quotes from Uber top official, Bozoma, that...bullet
4 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
5 Plane Crash Starbow suspends operations following plane crashbullet
6 Tech 6 reasons you should buy an iPhone SE instead of any of...bullet
7 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
8 Support Finance minister buys Kantanka carbullet
9 New Phones Nokia MWC 2018 Event in 5 minutesbullet
10 Entrepreneurship Creating Success Systems | StartUpSchoolbullet

Business