Nigeria's Recession Crushes Ecobank’s Profit
The impact of Nigeria's economic recession appears to be biting harder into the West African region.
It has begun to hit some players in the banking sector as Ecobank Nigeria shed significant margin of its 2016 profit.
The bank has a result of the loss, shed 5% of its shares in the Nigerian stock exchange.
The bank blamed the losses on the uncertainties in the foreign exchange market.
The bank operates in nearly 40 African countries but Nigeria accounts for 40% of its revenues.
Ecobank has a mid-sized operation in Nigeria and has become the first commercial bank listed on the Nigeria stock exchange to report a loss in its 2016 fiscal year.
Meanwhile, other banks have also seen profits fall, such as Fidelity Bank whose 2016 net income slid 21%.
Ecobank said its loss before tax narrowed to $131.3 million in 2016, from a loss of $205.2 million a year earlier.
“Our group revenues remained resilient despite a tough year of macroeconomic headwinds including a weaker economic environment, particularly in Nigeria, and the strengthening of our reporting currency – the U.S. dollar,” Ecobank said.