Ecobank Climbs by 12% over Strong Volume Trade
Ecobank Transnational Incorporation’s (ETI) share price climbed by 12% on strong volume following the announcement that shareholders approved all its resolutions at its annual general meeting.
Analysts witnessed a surge in volume traded on the Nigerian Exchange last week. More than 18 million Ecobank shares were traded on Thursday. A day earlier, more than 8 million shares exchanged hands. A similar trend was witnessed during the last trading session in May, when more than 2 million shares were traded.
The pan African lender said its shareholders applauded the Group’s strong performance in 2023 with its net revenues exceeding US$2 billion mark for the first time in nearly 10 years.
They also noted that this performance was achieved in the face of significant macro-economic headwinds such as high inflationary and interest rate environment, local currency depreciation, and geopolitical tensions.
Ecobank posted US$581 million as pretax profit in 2023, up 8 per cent from US$540 million in financial year 2022. The board of directors, however, failed to declared dividend. This left shareholders with no dividend, no capital gain from holding the banking stocks in 2023.
Data from the Nigerian Exchange showed that market price of Ecobank share rose to N23.85 on Friday from N21.30 at the previous close. Despite the surge, the market price of Ecobank is trading at 17.18% below its 52 week high of N28.80.
The latest rally on Ecobank share pushed the group stock market value higher to about N437 billion.
Following shareholders’ approval, the Board of Directors appointed Papa Madiaw Ndiaye as the incoming Chairman of Ecobank Transnational Incorporated. He is taking over from Alain Nkontchou.
Papa Ndiaye is the Chief Executive Officer and Founding Partner of AFIG Funds, a leading private equity fund management company focused on Africa. He has a proven track record of leadership and the creation of shareholder value and a deep commitment to Ecobank’s mission and strategic agenda.
ETI’s new Chairman, said: “I have long admired Ecobank Group’s successful development across Africa, and I am looking forward to working with Jeremy and ETI’s Board to steer the Bank through the next and exciting phase of its journey.
“With its strong foundation and numerous competitive advantages, I see Ecobank as strongly positioned to accelerate its growth trajectory and play an even greater role in driving the continent’s economic development in this era of rapid technological changes.”
Ecobank said it has recently implemented its new Growth, Transformation and Returns strategy to create shareholder value and deliver sustainable growth.
The strategy’s multiple initiatives and actions include entrenching its leadership position in affiliates in which it has high market shares; transforming its business performance in Nigeria and in subscale markets. #Ecobank Climbs by 12% over Strong Volume Trade
