Ecobank EGM passes Governance Action Plan – Press Release

Press Release on 3rd March 2014: 

“Ecobank shareholders meeting at an Extraordinary General Meeting today passed the Governance Action Plan proposed by the Board of Directors in compliance with the recommendations of the Securities & Exchange Commission (SEC) of Nigeria and contained in a joint report by SEC and the international firm, KPMG. The implementation of the detailed 51 point plan will commence immediately.  

At their meeting, which was attended by institutional shareholders as well as minority shareholders, the current 12 person Board of Directors of Ecobank Transnational Incorporated was retained following the decision by the institutional shareholders of the PIC, AMCON and IFC to withdraw a motion which they had proposed to create a smaller Interim Board. This would have run the Bank until immediately after the presentation of the 2013 results is expected to take place in June.

The Extraordinary General Meeting also passed resolutions to amend the Company’s Articles of Association.Under the new Articles of Association ETI shall not undertake any acquisition, merger or disposal of the Company’s assets whose value is equal to or above 20% of the book value of the Company without the approval of a simple majority of the shareholders present in General Meeting.  Shareholders voted to limit the maximum size of the Board be limited to fifteen (15) members and to ensure that no Directors could serve more than nine years in total.
A resolution to authorize the Board of Directors to raise additional capital as the Company may require up of up to twenty percent (20%) of the current issued capital of the Company, without reference to the General Meeting, to at any time within a period of three years from the date of its adoption was not passed.

– END –”

Earnings Season on the Ghana Stock Exchange: Half Year Reports

We are in the first half Earnings Season on the Ghana Stock Exchange and in my earlier post about Benso Oil Palm Plantation (BOPP), i.e. Half Year Performance of BOPP, I looked at how BOPP performed on the exchange and for the first half. Below are the various performances for some of the companies listed on GSE.

UT Bank
UT Bank Ltd (UTB), an indigenous bank, have reported an 89.23% surge in profit after tax, from GHS 4.69m in 2011 half year results to GHS8.87m for the same period in 2012.
The bank’s loan book stood at GHS 579.17m, an increase of 51.73% when compared with the GHS381.72m in the first half of 2011.

Price Movement on GSE: UTB

TOTAL
TOTAL Petroleum Ghana Ltd, TOTAL’s net profits for the half year grew by 51% from GHS11.72m in the previous year to GHS17.70m in 2012. Revenue for the period was GHS257.29m, a 23.63% increase from the same period last year.
TLW
Tullow Oil Plc, TLW’s earnings for the first half of the year was USD566.90m, a 63.23% growth over last year’s USD347.30m recorded in the same period. The oil producer has also announced the appointment of Anne Drinkwater as a Non-executive Director.

Price movement on GSE: TLW

Mechanical Lloyd Company (MLC)
Mechanical Lloyd Company Ltd (MLC), profits were up 53.50% to GHS1.10m in the first half of 2012. Assets of the company grew by 20.37% from GHS29.73m in 2011 to GHS35.78m in 2012.
Camelot Ghana Ltd
Camelot Ghana Ltd (CMLT), have reported a 38.41% growth in profit after tax from GHS 0.12million in the second quarter of 2011, to GHS0.17m for the same period in 2012. The company’s assets stood at GHS 4.27m, an increase of 16.57% when compared with the GHS3.66m in the first quarter of 2011.
Starwin Products ltd
The net profit for Starwin Products Ltd (SPL) for the half-year increased by 60.75% over the same period last year. The company reported a net profit of GHS0.22million for the period.
CAL Bank
CAL Bank Ltd, CAL, have reported a 206.17% surge in net profits for the half-year, from GHS5.90m in 2011 to GHS18.07 in 2012, just 1.47% less than the net profits reported for the 2011 financial year.  The bank’s assets grew from GHS589.31million in 2011 to GHS980.97m, representing a 66.46% growth.
Ecobank Ghana
Ecobank Ghana Ltd, EBG, profits were up 52.83%, from GHS36.62m in the second quarter of 2011 to GHS55.97m in the same period of 2012. The company’s assets are GHS3.07b, a 66.17% increase from half-year 2011. The bank’s loan book grew significantly from GHS527.04m to GHS1.25 billion.
Ayrton Drugs (AYRTN)
AYRTN recorded a GHS16.93 million turnover for the 9-Month period ending June 2012. The value is 15.91% above the GHS14.60 million recorded in the same period of 2011. This is below the company’s target (about GHS18 million) and this is largely due to the upgrade of the company’s factory (around April/May 2012) which affected production levels and by extension affected the revenue. Cost of sales also went up from GHS8.55 million to GHS10.02 million representing a 17.18% rise.
AYRTN’s other income grew by about seven times to GHS0.09 million for 2012. The growth is from the gains the company made from marketing the products of other foreign pharmaceutical firms. .
Selling and Distribution Expenses increased by 32.34% from GHS1.70 million in 2011 to GHS2.55 million in 2012. The hike in expenditure was partly due to the vans the company acquired in anticipation of high sales and marketing activities for the year.
Standard Chartered Bank
Standard Chartered Bank (Ghana), SCB, net profits for the half year ending June 30 grew by 46.22%, from GHS39.2m in the previous year to GHS57.32m in 2012. Net interest income however, declined by 3.51% to GHS73.11m, from GHS75.77m in 2011. The bank’s assets stood at GHS2.32b, a 26.96% increase from GHS1.83b in the same period of 2011.
Ghana Commercial Bank
Ghana Commercial Bank, GCB, profits were up 45.00% to GHS49.71m in the period under review. The company’s assets are GHS2.66billion, a 19% increase from half year 2011. The bank’s loan book stood at GHS642.63m, a 55.13% increase compared to the GHS414.25m reported in the same period last year.

Price Movement on GSE: GCB

Source of Data: CBL

Charting the Banking Sector of the Ghana Stock Exchange

This is the second part of my previous post, ‘Focusing on the Banking sector of the Ghana Stock Exchange (GSE) (Part I)‘. After looking at the current standings of the two banks, HFC Bank and Ghana Commercial Bank on the GSE, let’s now focus on Ecobank Ghana (EBG) and Standard Chartered Bank (SCB). 
I would like us to go strictly by charts of the various price movements on the exchange and some key statistics from January 2012 to date.



Ecobank Ghana (EBG): Market CAP = GHS 897.69 million. Current price = GHS 3.00
Ecobank Ghana (EBG). Price Movement Chart: Dec. 2011 to May 2012.
Source: Bloomberg

Standard Chartered Bank (SCB): Market CAP = GHS 962.31million. Current price= GHS 49.99

SCB Price movement Chart: Dec. 2011 to May 2012
Source: Bloomberg

Chart:  EBG vs SCB.

EBG vs SCB: 6 months Price movement on the Ghana Stock Exchange

This is the second part on the Banking sector of the Ghana Stock Exchange; join me in my next post on UT Bank (UTB) and CAL Bank(CAL).

.adslot-overlay {position: absolute; font-family: arial, sans-serif; background-color: rgba(0,0,0,0.65); border: 2px solid rgba(0,0,0,0.65); color: white !important; margin: 0; z-index: 2147483647; text-decoration: none; box-sizing: border-box; text-align: left;}.adslot-overlay-iframed {top: 0; left: 0; right: 0; bottom: 0;}.slotname {position: absolute; top: 0; left: 0; right: 0; font-size: 13px; font-weight: bold; padding: 3px 0 3px 6px; vertical-align: middle; background-color: rgba(0,0,0,0.45); text-overflow: ellipsis; white-space: nowrap; overflow: hidden;}.slotname span {text-align: left; text-decoration: none; text-transform: capitalize;}.revenue {position: absolute; bottom: 0; left: 0; right: 0; font-size: 11px; padding: 3px 0 3px 6px; vertial-align: middle; text-align: left; background-color: rgba(0,0,0,0.45); font-weight: bold; text-overflow: ellipsis; overflow: hidden; white-space: nowrap;}.revenue .name {color: #ccc;}.revenue .horizontal .metric {display: inline-block; padding-right: 1.5em;}.revenue .horizontal .name {padding-right: 0.5em;}.revenue .vertical .metric {display: block; line-height: 1.5em; margin-bottom: 0.5em;}.revenue .vertical .name, .revenue .vertical .value {display: block;}.revenue .square .metric, .revenue .button .metric {display: table-row;}.revenue .square .metric {line-height: 1.5em;}.revenue .square .name, .revenue .square .value, .revenue .button .value {display: table-cell;}.revenue .square .name {padding-right: 1.5em;}.revenue .button .name {display: block; margin-right: 0.5em; width: 1em; overflow: hidden; text-overflow: clip;}.revenue .button .name:first-letter {margin-right: 1.5em;}a.adslot-overlay:hover {border: 2px solid rgba(58,106,173,0.9);}a.adslot-overlay:hover .slotname {border-bottom: 1px solid rgba(81,132,210,0.9); background-color: rgba(58,106,173,0.9);}a.adslot-overlay:hover .revenue {border-top: 1px solid rgba(81,132,210,0.9); background-color: rgba(58,106,173,0.9);}div.adslot-overlay:hover {cursor: not-allowed; border: 2px solid rgba(64,64,64,0.9);}div.adslot-overlay:hover .slotname {border-bottom: 1px solid rgba(128,128,128,0.9); background-color: rgba(64,64,64,0.9);}div.adslot-overlay:hover .revenue {border-top: 1px solid rgba(128,128,128,0.9); background-color: rgba(64,64,64,0.9);}

Ghana Stock Exchange (GSE): Market Update: 08.05.12

In today’s trading on the Ghana Stock Exchange, the GSE Composite Index went up by 7.13 point to close at 1,059.64 points. A gain in the share price of Ecobank Transnational Incorporated (ETI) held off the losses in two other equities to push the Index.
Since ETI is a financial stock, the GSE Financial Stock Index also closed at 921.40 points from a previous of 910.92 points. This Index is still trading below the base index of 1000 points. As reported by CAL Brokers (CBL), the overall market return climbed to 9.35%.
The volume of shares traded increased by 57.81% amounting to a 12.93% increase in value, compared to the previous session. About 0.28 million shares valued at GHS 0.11 million were traded.
Out of the total volume traded, GOIL out-performed all other equities by trading 83.45 % of volume and this is about 77.09% of the traded value.
ETI was the only gainer and although it closed at GHS 0.14 from GHS 0.13 (1 pesewa gained), it had the capacity to move the market index up by some points despite the loses recorded by Standard Chartered Bank (SCB) [ -0.1%] and TOTAL [-0.15%] to close at GHS 51.30 and GHS 26.14 respectively.

Courtesy: Ghana Stock Exchange & CAL Brokers Ltd (CBL)

Only 38 West African companies made it to the list of Africa’s Top 250 companies

Over thousands of companies are registered in West Africa. Most of which are registered in Nigeria, Ghana and Cote d’ Ivoire. But despite the numbers, only thirty eight of  West African companies made it to the list of Africa’s Top 250 Companies.

Africa’s Top 250 Companies list is compiled annually by the African Business team and in the April issue of the AFRICAN BUSINESS magazine, financial data from Dr. Ayo Salami, (co-founder of African Business Research Ltd) as at 31st December 2011 indicated that
African businesses lost value from $848 billion to $ 652 billion (current market capitalization). As at that date, only 86 companies in Africa are worth a billion dollar.

In this Top 250 list, Dangote Cement, a Nigerian company in the construction and materials industry maintained the 15th position but was the biggest in West Africa with a market capitalization of about $10. 6 billion. Anglogold Ashanti (Ghana: Market cap: $5.5 billion) in the mining and metals industry was the second largest in the region and the 25th in Africa.

It’s quite bad to know that only 38 companies in the region are larger than $210 million (Market cap. of the 250th company on the  list).  Another notable thing is that, only one company, Ecobank Transnational Inc, on the list is from Togo. This company dropped from 126th on the 2011 Top 250 list to 130th in the latest publication with a market capitalization of $667 million.
Nigeria dominated in West Africa with 26 companies in a total of 38 companies from the region. Ghana and Cote d’ Ivoire followed as usual.

I hope this year brings success to African companies especially the West African ones.
With the current press from the Bank of Ghana, most Ghanaian banks may consider merging to meet the required capital for banking which would aid growth of the banking industry.

The growth of these companies would help the West African region develop to meet its pressing needs.

Long live African Businesses, Long live Start-ups.

Dividend Payments released for some companies on the Ghana Stock Exchange

The time has come again when shareholders look up to their various companies hoping dividends would be paid. Dividend investors are also looking for dividend stocks on the Ghana Stock Exchange whiles other type of investors hope the profits would be plough back for the growth of the companies.  This is the time where preference shareholders get paid first before the ordinary shareholders.

Some companies on the exchange are planning for their Annual General Meetings (AGM) and hoping to pay dividend for the financial year. Let’s take a closer look at what directors of those companies have decided to pay.
Companies
Dividend per share(GH cedis)
Payment Date
Standard Chartered Bank (SCB)
3.05
May 31, 2012
Ecobank Ghana (EBG)
0.24
May 18, 2012
Benso Oil Palm Plantation (BOPP)
0.0690
June 29, 2012
SG-SSB
0.04
April 30, 2012
HFC Bank (HFC)
0.022
May 14, 2012
Trust Bank Limited (The Gambia) (TBL)
20 butus
April 12, 2012
PBC Ltd (PBC)
0.0173
April 30, 2012
SCB-PREF
0.0324
March 30, 2012
For most of these stocks, the qualifying dates for their dividend payment are in March and April 2012. This simply means every potential investor who wants to enjoy the above dividend payments must buy the shares of those companies and be registered in their books before March or April. SCB, EBG and HFC for instance, have their qualifying dates on April 20th, 19th and 18th, 2012 respectively, therefore investors must note these else would have to wait for another financial year to enjoy dividend payments.
AGMs
Ecobank Ghana ltd, HFC Bank Gh ltd and Ayton Drugs Manufacturing Company ltd planned to go for their Annual General meetings on April 27th, 26th and 5th respectively. SG-SSB limited to have theirs on March 30th whiles Benso Oil Palm Plantation Ltd planned for May 3rd, 2012.
Shareholders must do well to attend these meetings in order to get a better knowledge of the company and its plans for the future.
Keep investing, especially in the Ghanaian financial market.