CGF Bourse reiterates its buying rate on Ecobank, and have revised it’s target price up to XOF 65,68, in response to Ecobank’s stellar performance in 2012. For the research and analytic department of the Dakar based Broket, “There is ample evidence that Ecobank has emerged stronger from a critical phase, successfully integrating two significant acquisitions that have lent it scale in the key geographies of Nigeria and Ghana. The benefits accruing from the expanded scale have started to crystallize, evident from the momentum in turnover and earnings growth”.
In other side, Robust risk management practices have also started paying dividends, resulting in improvement in asset quality and solvency positions. ‘While the East African geography continues to raise our concerns, our recent discussion with Ecobank management has led us to believe that it has a multi-pronged strategy in place to turn around performance”.