₦airaland Forum

crownprince2017:
People following him on eco doesn't know he is a trader on that stock, he will dump with 20-30 gain and you are the liquidity.

Ask him how many time he has jijo the stock in the last 6 months. He knows the bank is going nowhere,he just wants deceive the gullible ones and later tell you he warned you.

The game is game..

I will not tell you when I sells is the watch word.

Mankind2024:
My message to NSEMPA investors.

The Ecobank (ETI) Paradox: Why Investors Should Think Thrice
For over a decade, Ecobank Transnational Incorporated (ETI) has been the "Pan-African" darling of stock promoters while simultaneously serving as a red flag for long-term Nigerian investors. Despite a footprint that spans the continent, the bridge between corporate ambition and shareholder value has remained broken.
As aggressive campaigns tout the 2025 unaudited financial reports as a "buy" signal, history suggests that for ETI, the numbers on the page rarely translate to Naira in the pocket.
1. The 2008 Dollar Trap: A Legacy of Dilution
The "rot" arguably began with the infamous 2008 Public Offer and Rights Issue. ETI sought to raise $2.5 billion, pricing shares at $0.29 for the public. Nigerian investors, lured by the prestige of a dollar-denominated pan-African vision, poured in life savings.
The Reality:The timing was disastrous, coinciding with the global financial crash.
The Result: Investors who bought in 2008 have watched their capital evaporate. While the bank expanded its "empire" across 30+ countries, the local retail investor saw almost no benefit. The share price on the NGX has struggled for years to even approach the equivalent of its 2008 offer price in real terms, especially when adjusted for the massive devaluation of the Naira.

2. The Nedbank Exit: A Vote of No Confidence
Perhaps the most damning indictment of ETI’s long-term value came in December 2025, when Nedbank Group, one of South Africa’s "Big Four" banks and a long-standing strategic partner, finally pulled the plug.
Metric Details of the Nedbank Departure
Stake Sold 21.2% of ETI
The Financial Blow,Nedbank realized a R7 billion loss ($370 million) on the exit.
Investment vs. Exit. Nedbank initially invested R6.3 billion; they exited for a mere R1.8 billion.
When a sophisticated institutional investor like Nedbank—which has "insider" board representation—decides to cut its losses and walk away from a 71% value destruction, retail investors must ask: What do they know that the stock promoters aren't telling us?

3. The "Paper Profit" Trap of 2025
The current hype revolves around the 2025 financial results, which show soaring "Gross Earnings" and "Profit Before Tax." However, ETI’s books are notoriously complex due to its multi-currency operations.
Currency Mirage: Much of ETI's "growth" is often a function of hyperinflation and currency translation in volatile African markets. For a Nigerian investor, a profit reported in Togo (ETI's HQ) or elsewhere may never manifest as a dividend in Lagos.
The Dividend Drought:Historically, ETI has been stingy with payouts relative to its Tier-1 and 2 peers like GTCO or Zenith. Retained earnings are frequently swallowed by "impairment charges" or the need to shore up capital in struggling subsidiaries.

4. Governance Shadows and "Ridiculous" Sales
The bank's history is peppered with governance friction. From the 2014 whistleblower allegations regarding the manipulation of results to more recent reports of "fire sales" of assets to foreign portfolio investors at steep discounts, the narrative is rarely about the minority shareholder.
The recurring theme is that ETI operates as a holding company that prioritizes regional expansion and institutional exits over the dividend yield of the individual investor on the NGX.

The Verdict: Fool Me Twice?
The 12-year trajectory of ETI is a masterclass in how a "great African story" can be a "terrible investor reality." While the 2025 unaudited numbers look shiny, they do not erase:

1. A history of massive capital destruction.

2.The exit of a major technical partner (Nedbank) at a staggering loss.

3. A governance track record that has often left local investors in the dark.

Before following the herd into the 2025 "rally," remember: In the stock market, the best predictor of future behavior is past performance.
For over a decade, ETI has promised the continent but delivered only crumbs to its Nigerian shareholders.
Think thrice.


https://www.thisdaylive.com/2025/08/06/ecobanks-biggest-shareholder-safricasnedbank-set-to-sell-stake-in-major-reset/


https://www.thisdaylive.com/2025/10/24/multi-million-dollar-fraud-case-lingering-legal-battles-still-haunts-ecobank/

isaacosas01:
I don’t think u have go to the gutters to state ur point.

My point is clear, because a stock is undervalued doesn’t mean it will not “undervalue” more.

ETI will go lower!

Mankind2024:
My message to NSEMPA investors.

The Ecobank (ETI) Paradox: Why Investors Should Think Thrice
For over a decade, Ecobank Transnational Incorporated (ETI) has been the "Pan-African" darling of stock promoters while simultaneously serving as a red flag for long-term Nigerian investors. Despite a footprint that spans the continent, the bridge between corporate ambition and shareholder value has remained broken.
As aggressive campaigns tout the 2025 unaudited financial reports as a "buy" signal, history suggests that for ETI, the numbers on the page rarely translate to Naira in the pocket.
1. The 2008 Dollar Trap: A Legacy of Dilution
The "rot" arguably began with the infamous 2008 Public Offer and Rights Issue. ETI sought to raise $2.5 billion, pricing shares at $0.29 for the public. Nigerian investors, lured by the prestige of a dollar-denominated pan-African vision, poured in life savings.
The Reality:The timing was disastrous, coinciding with the global financial crash.
The Result: Investors who bought in 2008 have watched their capital evaporate. While the bank expanded its "empire" across 30+ countries, the local retail investor saw almost no benefit. The share price on the NGX has struggled for years to even approach the equivalent of its 2008 offer price in real terms, especially when adjusted for the massive devaluation of the Naira.

2. The Nedbank Exit: A Vote of No Confidence
Perhaps the most damning indictment of ETI’s long-term value came in December 2025, when Nedbank Group, one of South Africa’s "Big Four" banks and a long-standing strategic partner, finally pulled the plug.
Metric Details of the Nedbank Departure
Stake Sold 21.2% of ETI
The Financial Blow,Nedbank realized a R7 billion loss ($370 million) on the exit.
Investment vs. Exit. Nedbank initially invested R6.3 billion; they exited for a mere R1.8 billion.
When a sophisticated institutional investor like Nedbank—which has "insider" board representation—decides to cut its losses and walk away from a 71% value destruction, retail investors must ask: What do they know that the stock promoters aren't telling us?

3. The "Paper Profit" Trap of 2025
The current hype revolves around the 2025 financial results, which show soaring "Gross Earnings" and "Profit Before Tax." However, ETI’s books are notoriously complex due to its multi-currency operations.
Currency Mirage: Much of ETI's "growth" is often a function of hyperinflation and currency translation in volatile African markets. For a Nigerian investor, a profit reported in Togo (ETI's HQ) or elsewhere may never manifest as a dividend in Lagos.
The Dividend Drought:Historically, ETI has been stingy with payouts relative to its Tier-1 and 2 peers like GTCO or Zenith. Retained earnings are frequently swallowed by "impairment charges" or the need to shore up capital in struggling subsidiaries.

4. Governance Shadows and "Ridiculous" Sales
The bank's history is peppered with governance friction. From the 2014 whistleblower allegations regarding the manipulation of results to more recent reports of "fire sales" of assets to foreign portfolio investors at steep discounts, the narrative is rarely about the minority shareholder.
The recurring theme is that ETI operates as a holding company that prioritizes regional expansion and institutional exits over the dividend yield of the individual investor on the NGX.

The Verdict: Fool Me Twice?
The 12-year trajectory of ETI is a masterclass in how a "great African story" can be a "terrible investor reality." While the 2025 unaudited numbers look shiny, they do not erase:

1. A history of massive capital destruction.

2.The exit of a major technical partner (Nedbank) at a staggering loss.

3. A governance track record that has often left local investors in the dark.

Before following the herd into the 2025 "rally," remember: In the stock market, the best predictor of future behavior is past performance.
For over a decade, ETI has promised the continent but delivered only crumbs to its Nigerian shareholders.
Think thrice.


https://www.thisdaylive.com/2025/08/06/ecobanks-biggest-shareholder-safricasnedbank-set-to-sell-stake-in-major-reset/


https://www.thisdaylive.com/2025/10/24/multi-million-dollar-fraud-case-lingering-legal-battles-still-haunts-ecobank/

crownprince2017:
People following him on eco doesn't know he is a trader on that stock, he will dump with 20-30 gain and you are the liquidity.

Ask him how many time he has jijo the stock in the last 6 months. He knows the bank is going nowhere,he just wants deceive the gullible ones and later tell you he warned you.

The game is game..

I will not tell you when I sells is the watch word.

megawealth01:
It's a game 🎯

nosa2:
Before nko; money should be transferred from the lazy to the hard working. If you are too lazy to go through financial statement then go and give your money to money manager. If you don't do that then your money will be used as exit liquidity on the internet.

PS have you bought your ETI?

nosa2:
Which one be gutter again?

megawealth01:
I buy am then at sub 30

nosa2:
Everybody knows the quotes but when it is time to apply it they fall into the herd.

I remember arguing against the gurus that banks had no business trading at the valuations they were trading. Everybody and their mama had a reason why they should be trading at a discount. When price started to rise the guru analysts started to revise price upwards.

I get greedy when other people are scared and scared when other people are greedy.

All the points being mentioned against ETI are true historically but past performance is no indicator of future performance. What mankind2024 failed to mention in his epistle was that the company management bought out the strategic investor. Unlike Ellah where management is dumping shares, ETI management is tying their wealth to the bank's future.

Anyway all this analysis is on the Ngxforum thread.

PS Have you bought your ETI??

nosa2:
I remember arguing against the gurus that banks had no business trading at the valuations they were trading. Everybody and their mama had a reason why they should be trading at a discount. When price started to rise the guru analysts started to revise price upwards.

HesInMe:
Isn't Ecobank just a poorer version of Access (strategically speaking) -- with a more expensive stock?

chimex38:
I remember this.

HesInMe:
Isn't Ecobank just a poorer version of Access (strategically speaking) -- with a more expensive stock?

Mankind2024:
My message to NSEMPA investors.

The Ecobank (ETI) Paradox: Why Investors Should Think Thrice
For over a decade, Ecobank Transnational Incorporated (ETI) has been the "Pan-African" darling of stock promoters while simultaneously serving as a red flag for long-term Nigerian investors. Despite a footprint that spans the continent, the bridge between corporate ambition and shareholder value has remained broken.
As aggressive campaigns tout the 2025 unaudited financial reports as a "buy" signal, history suggests that for ETI, the numbers on the page rarely translate to Naira in the pocket.
1. The 2008 Dollar Trap: A Legacy of Dilution
The "rot" arguably began with the infamous 2008 Public Offer and Rights Issue. ETI sought to raise $2.5 billion, pricing shares at $0.29 for the public. Nigerian investors, lured by the prestige of a dollar-denominated pan-African vision, poured in life savings.
The Reality:The timing was disastrous, coinciding with the global financial crash.
The Result: Investors who bought in 2008 have watched their capital evaporate. While the bank expanded its "empire" across 30+ countries, the local retail investor saw almost no benefit. The share price on the NGX has struggled for years to even approach the equivalent of its 2008 offer price in real terms, especially when adjusted for the massive devaluation of the Naira.

2. The Nedbank Exit: A Vote of No Confidence
Perhaps the most damning indictment of ETI’s long-term value came in December 2025, when Nedbank Group, one of South Africa’s "Big Four" banks and a long-standing strategic partner, finally pulled the plug.
Metric Details of the Nedbank Departure
Stake Sold 21.2% of ETI
The Financial Blow,Nedbank realized a R7 billion loss ($370 million) on the exit.
Investment vs. Exit. Nedbank initially invested R6.3 billion; they exited for a mere R1.8 billion.
When a sophisticated institutional investor like Nedbank—which has "insider" board representation—decides to cut its losses and walk away from a 71% value destruction, retail investors must ask: What do they know that the stock promoters aren't telling us?

3. The "Paper Profit" Trap of 2025
The current hype revolves around the 2025 financial results, which show soaring "Gross Earnings" and "Profit Before Tax." However, ETI’s books are notoriously complex due to its multi-currency operations.
Currency Mirage: Much of ETI's "growth" is often a function of hyperinflation and currency translation in volatile African markets. For a Nigerian investor, a profit reported in Togo (ETI's HQ) or elsewhere may never manifest as a dividend in Lagos.
The Dividend Drought:Historically, ETI has been stingy with payouts relative to its Tier-1 and 2 peers like GTCO or Zenith. Retained earnings are frequently swallowed by "impairment charges" or the need to shore up capital in struggling subsidiaries.

4. Governance Shadows and "Ridiculous" Sales
The bank's history is peppered with governance friction. From the 2014 whistleblower allegations regarding the manipulation of results to more recent reports of "fire sales" of assets to foreign portfolio investors at steep discounts, the narrative is rarely about the minority shareholder.
The recurring theme is that ETI operates as a holding company that prioritizes regional expansion and institutional exits over the dividend yield of the individual investor on the NGX.

The Verdict: Fool Me Twice?
The 12-year trajectory of ETI is a masterclass in how a "great African story" can be a "terrible investor reality." While the 2025 unaudited numbers look shiny, they do not erase:

1. A history of massive capital destruction.

2.The exit of a major technical partner (Nedbank) at a staggering loss.

3. A governance track record that has often left local investors in the dark.

Before following the herd into the 2025 "rally," remember: In the stock market, the best predictor of future behavior is past performance.
For over a decade, ETI has promised the continent but delivered only crumbs to its Nigerian shareholders.
Think thrice.


https://www.thisdaylive.com/2025/08/06/ecobanks-biggest-shareholder-safricasnedbank-set-to-sell-stake-in-major-reset/


https://www.thisdaylive.com/2025/10/24/multi-million-dollar-fraud-case-lingering-legal-battles-still-haunts-ecobank/

Bizibi:
eco and the old unity bank look alike when it comes to services.

nosa2:
Go through the Ecobank and Accessbank threads here and tell me which you think is poorer

https://ngxforum.com/board/3/banking-stocks

HesInMe:
Even on your numbers, both are trading around 0.3x book value (Access enjoying a slight premium). But Access has the better business mix (qualitatively speaking), with a large, stable pensions business (post ARM acquisition) and a growing payments solution (Hydrogen Pay), both of which generate higher quality earnings than net interest margin.

If you want a pan-African bank, Access is probably the better bet.

nosa2:
When I said we are at peak palm oil I meant palm oil prices would most likely only decline over the next few years. The decline wont be dramatic but it would be a steady decline from the peak we were witnessing. This isn't something that will be captured in one quarter though I also suspect we are looking at peak palm stock valuations.

With regards to ETI, all I will say is; Have you bought your ETI?

Zenith bank is more likely to touch N50 than ETI is to touch N30. Not everybody is crazy about dividend. I for one do not care about dividends. I care that you care about it and as such I factor your behavior in my analysis but I try and avoid collecting dividends

unite4real:
Go and check or verify the asymmetric relationship between crude oil prices and international crude Palm oil prices. The Internet is your friend. A lot will be revealed to you.
Rising crude oil prices tend to push CPO prices higher, while falling crude oil prices do not reduce CPO prices to the same extent. This link is strongest because palm oil is used in biodiesel production, making it partially tied to energy markets.

The import tariff reduction was to cushion the effects of the already rising international prices which would hurt local prices. The 6 to 7% tariff reduction will only be swallowed by the increase in CPO prices. Look out for the price chart and you will realize that CPO prices is in an elevated state for some time now.

The two biggest suppliers which are Indonesia and Malaysia are facing challenges leading to squeeze in CPO in the short and medium term
.Indonesia faces land policy issues and uncertainty around biodiesel mandates, while Malaysia struggles with stagnant yields due to aging trees and labor shortages. These constraints mean supply growth is limited even as demand for food and fuel remains strong.

nosa2:
You guys really don't know how tariffs work sha. There was another guy that wrote a lot exposing his lack of knowledge on the effects of reduced tariffs.

See, if I had skin in the game I would put energy into debating this issue, but I don't so I won't.

By the way I hope you have bought some you know what

unite4real:
Maybe you should educate us that when import tariff is reduced in Nigeria, the international price of CPO will go down, the scarcity of CPO due to weather and biofuel conversation will be reversed
You only concentrate on the reduction in the import tariff. Is that the only factor that determines the end user price?
I am cork sure if you have a superior explanation, you will not waste time to do so. After all you have been busy engaging folks on ETI without relenting. Please use same energy to explain this tariff thing to us. Many of us might learn something we are not aware of.

unite4real:
Maybe you should educate us that when import tariff is reduced in Nigeria, the international price of CPO will go down, the scarcity of CPO due to weather and biofuel conversation will be reversed
You only concentrate on the reduction in the import tariff. Is that the only factor that determines the end user price?
I am cork sure if you have a superior explanation, you will not waste time to do so. After all you have been busy engaging folks on ETI without relenting. Please use same energy to explain this tariff thing to us. Many of us might learn something we are not aware of.

Streetinvestor2:
Leave oga nosa he has made it clear he is here to promote what he has and possibly discredit what he doesn't have.Which yeye tariff cut. Is tariff cut going to make any difference to those exporting it.
Nigerians are making good money exporting palm oil now.I even thought the government previously placed ban on export of the product because we are not meeting local demand

Care4:
How about T+1? It won't settle in his account till the 14th.

Forgive my maths, if I'm wrong.

nosa2:
Go through the Ecobank and Accessbank threads here and tell me which you think is poorer

https://ngxforum.com/board/3/banking-stocks

HesInMe:
Even on your numbers, both are trading around 0.3x book value (Access enjoying a slight premium). But Access has the better business mix (qualitatively speaking), with a large, stable pensions business (post ARM acquisition) and a growing payments solution (Hydrogen Pay), both of which generate higher quality earnings than net interest margin.

If you want a pan-African bank, Access is probably the better bet.

nosa2:
Haha, nice try!

The one way I can think off that will give me skin in the game has if we're have this conversation on ngxforum.com

That way I will be generating traffic and content for the site