Analysts Weekly Markets Update Wilfred Agyei Kofi Busia Kyei Rudolf Cofie Tel: +233(0)302 251137 Website: www.umbcapital.com Our Opinion: SELL FEATURE FOR THE WEEK Ecobank’s full year profit declines by 21.56% Return on Equity (DuPont) Performance on the Stock Market 40.00% 37.18% Ecobank Ghana started 2017 at GHS6.40 and appreciated to GHS7.60 (as at 35.00% 34.19% December 2017), translating to a gain of 18.75%, reflecting positive sentiments 30.00% towards the banking giant. The 18.75% gain is better compared to the -8.70% 25.00% 24.87% and -7.76% recorded the same period a year ago and in 2015 respectively. 20.00% It has posted a 52-Week-High of GHS8.05, and a 52-Week Low of GHS6.40, 15.00% Wilfred Agyei with a PE Ratio of 8.74x, with an average price of GHS7.24 over the past 200 10.00%
[email protected] days. 5.00% Trading activity has been brisk; a total volume of 3,395,200 shares of the bank 0.00% 2015 2016 2017 exchanged positions during 2017, this is higher than the 1,268,288 shares traded during 2016. Total value of shares traded amounted to GHS22,799,190 significantly higher than the GHS8,607,580 recorded in 2016. Return on Equity fell from 34% to 25% due to the sharp decline in the Net Profit Margin from 37% to 29%. Common Size Analysis FINANCIAL STATEMENT SUMMARY Proportion of Interest income 2017 2016 2015 100.00% INCOME STATEMENT GHS 000 GHS 000 GHS 000 81.92% Interest Income 885,483 878,914 790,961 80.00% Net Profit 255,384 325,594 327,523 64.36% 66.00% 60.00% BALANCE SHEET 41.41% Total Assets 9,098,692 8,025,510 6,587,487