Ecobank records in earnings, lenders in Q1

The first quarter financial results of Ecobank Transnational Inc., Africa’s most geographically diverse lender shows the bank’s bottom lines was affected by 5 per cent drop in gross earnings.
The result may not be unconnected with the struggling with and slow growing economy that has hindered many bank customers from honouring obligations as at when due with growth in Nigeria slowed to 2.8 per cent in 2015,  the weakest level since 1999 and down from 6.2 per cent recorded in 2014.
 The result also revealed that the bank lenders are not growing as earnings fell on the back of a low oil price and a weaker currency, while a high impairment charges on financial charges also did some damage to profit.
Ecobank’s slow start to the year is a signal that other lenders in the country may have earnings crimped by rising loan loss expense with some banks already exceeding the 5 per cent.  
The profit before tax also followed suit as it plunged by 33 per cent to reflect $103.7 million (down 32 per cent to stand at NGN20.6 billion) and similarly, its profit after tax stood at $81.4 million following its 35 per cent downslide (down 34 per cent to NGN16.2 billion).