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Ecobank recovers N18 bn bad debts

…First Bank’s half yr PAT drops
ECOBANK Nigeria Plc has recovered a loan of N18.19 billion from its debtors after it scale through the audit of banks by the Central Bank of Nigeria (CBN).

The bank in its third quarter results ended September 30, 2009 recorded a gross earning in excess of N45 billion. This figure represents a 17 per cent increase over the N38 billion recorded in the same period of last year.

The bank stated that an aggressive loan recovery drive has yielded over N18.19 billion, thereby eroding provisioning of N33.97 billion made for potential loan losses to N15.77 billion. This however totally eroded the bank’s net profit after tax for the period, which originally stood at N6.86 billion.

According to the result released to the Nigerian Stock Exchange (NSE), the bank recorded Profit after loss of N8.3 billion in comparison with a profit after tax of N5.18 billion in similar period of 2008.Also, First Bank of Nigeria Plc recorded a  90.91 per cent dip in its Profit After Tax (PAT) for the second quarter ended, September 30, 2009 financial statement. The dip in its after tax profit was occasioned by a N29.51 billion provision for risk assets associated with margin facilities and other bad debts. Its profit after tax stood at N2.16 billion as against N23.77 billion recorded in the comparable period of 2008.

It recorded a gross earnings of N128.15 billion as against N96.95 billion in the comparable period of 2008 and a profit before tax of N2.16 billion compared with N30.05 billion recorded in 2008. Meanwhile, investors’ woes continued on the Nigerian Stock Exchange (NSE), Tuesday, as the value of their investments dipped further by N94.87 billion.

The market capitalisation and All-share index, both representing the value of investment on the NSE, dropped by 1.86 per cent each. The index which opened at 21,665.46 points shed 402.16 basis points to close at 21,263.30 points while the capitalisation closed at N5.016 trillion from N5.111 trillion at which it opened. Lafarge Cement WAPCO Plc recorded the most share price loss, dropping by N1.55 to close at N29.45 per share,Julius Berger Nigeria Plc followed with a loss of N1.41 to close at N26.91 per share.

and First Bank of Nigeria Plc dipped by N0.74 to close at N14.11 per share.
Conversely, Unilever Nigeria Plc recorded the most share price gain, rising by N0.79 to close at N16.61 per share, Ashaka Cement Plc followed with a gain of N0.30 to close at N13.40 per share.

and Dangote Flour Mills Plc garnered N0.23 to close at N4.93 per share.
Equity trading appreciated by 24.91 per cent, as a turnover of 338.8 million shares valued at N3.06 billion was recorded 5,675 deals, in contrast to the previous day’s turnover of 271.24 million shares valued at N1.93 billion in 5,828 deals.

The Banking sub-sector dominated the other sub-sectors, accounting for 70.03 per cent of the market turnover, with 237.27 million shares valued at N1.95 billion in 3,020 deals. United Bank for Africa Plc recorded the highest patronage in the sub-sector, trading 39.11 million shares valued at N447.37 million in 211 deals, followed by Diamond Bank Plc with the exchange of 29.5 million shares valued at N215.74 million in 135 deals and First Bank of Nigeria Plc recorded 28.86 million shares valued at N416.78 million 809 deals.

The Insurance sub-sector followed on the sectorial analysis, accounting for 9.39 per cent of the market turnover, with 31.8 million shares valued at N23.32 million in 391 deals. International Energy Insurance Plc recorded the most patronage in the sub-sector, trading 7.5 million shares valued at N4.63 million in 45 deals, AIICO Insurance Plc followed with th exchange of 7.5 million shares valued at N6.53 million in 165 deals, while Investment and Allied Assurance Plc recorded 6.02 million shares valued at N3.01 million eight deals.


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