Pan African Bank Ecobank Transnational Incorporated fell by 73% to $107.5 million in 2015 from $394.7 million a year before. “Our 2015 results were disappointing. We did a comprehensive review of our processes and portfolio leading to elevated impairment charges in the fourth quarter. Impairment losses were significantly increased by $265 million to $532 million,” said Group CEO Ade Ayeyemi starting a difficult term.

Loans to customers slumped 9% to $11.2 billion from $12.3 billion in 2014. Net Banking Product also decreased by 8% to $2.1 billion. “We were faced with a difficult operating environment due to the slowdown in economic growth across Africa, as a result of lower commodity prices. These developments affected both households and businesses,” Ayeyemi said.

The bank recently announced amendments to its structure and focused its business model on its customers, products and geographical coverage.

Investors’ reaction is to be followed in the various financial markets where the group is listed (Ghana, Nigeria and Cote d’Ivoire). These markets received a warning about the poor performance. Nevertheless, with a net per share profit at $0.28 down 83%, the pill might be hard to swallow, for short-term speculators especially.

Idriss Linge