ETI (Ecobank): Great idea, looking forward to implementation
Dear Africa interested individuals: I mentioned in my article titled "29 African Banks published on May 23, 2016" that ETI is one of two banks (the other is National Bank of Egypt) in grave danger due to a combination of excessive leverage and high contingent liabilities relative to total assets. The CEO of ETI recently spoke about changes to the status quo during a presentation to stockbrokers at the Nigerian Stock Exchange. His speech reflects the understanding at the helm of ETI that significant changes to the way the business is being run presently have to be made. I could not agree more. The key takeaways for me are: 1. ETI has simplified its operating model which has led to the redefinition of business segments and geographical regions. Portfolios will be clarified across countries and businesses. No more investing in products in which the cost of equity exceeds the return on equity. 2.