Ecobank Transnational Incorporation (ETI) Plc’s third quarter earnings have surged amid a tough and volatile environment as the lender announced it has successfully completed the placement of a $400 million convertible debt.
For the first nine months through September 2017, ETI’s net income increased by 12.15 percent to N57.95 billion from N51.57 billion the previous year.
Interest income was up 16.15 percent to N353.38 billion in the period under review as against N303.51 billion as at September.
Gross earnings were up 23.66 percent to N564.46 billion in the period under review, thanks to growth interest and non-interest income. Operating income increased by 20.52 percent to N413.71 billion in September 2017 from N373.75 billion.
The growth interest income was driven by an 85.11 percent surge in interest income on treasury bills, investment securities available for sale and financial assets held for trading.
ETI attributes the stellar performance to cost control measures and as well as contributions from its subsidiaries across Africa.
“Our results reflected the benefits of diversification and the progress made in executing our strategy to positioning the company for long-term growth. Actions we took around reducing costs have shown positive results and were evident in improvements to the cost-to- Ade Ayeyemi, Group CEO of the Bank.
ETI’s non-interest revenue spiked by 37.33 percent to N197.40 billion in September 2017 from N143.74 billion the previous year. The growth was driven by a 17.2 percent and 62.15 percent surge in net fees and commission income and trading income to N89.62 billion and N101.10 billion as at September 2017.
The Lome parent company of Ecobank Group has successfully placed $400 million convertible debt.
The convertible debt was structured in three tranches. The first, a convertible loan facility $250 million, was arranged through the Public Investment Corporation (PIC) of South Africa, an institutional investor.
“The second tranche consisting of $140 million convertible note was fully subscribed to by Qatar National Bank (QNB),” said the lender.
ETI said the third OF $10 million convertible loans was reserved for shareholders other than the institutional shareholders who participated up to $1.1 million.
The convertible bond issue will have a maturity of 5 years and a coupon of 6.46 percent above 3-month LIBOR, with an option to convert at an exercise price of 6 US cents during the conversion period.
The firm’s ability to raise this significant amount of capital from our shareholder is a testament to the confidence thy repose in the company’s long term strategy. We want to thank our shareholders for their tremendous support,” said Ayeyemi.
ETI’s shares have gained 65.98 percent since the start of the year to close at N17.05 percent as at 2:00 pm Lagos time.
BALA AUGIE
