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Ecobank Transnational Incorporated (ETI), the parent company of Ecobank, has become the fourth bank in Nigeria to issue a profit warning ahead of the release of its 2015 full-year results.

The lower profit warnings are attributed to higher impairment charges on the banks’ non-performing loans, as low oil prices and weak macroeconomic conditions continue to exert pressure on the financial positions of Nigerian banks.  

“Higher impairment losses on loans were recognized in the last quarter of 2015 across our loan portfolio,” ETI said today in a statement released at the Nigerian Stock Exchange. “As a result, our revised growth targets communicated during our third quarter 2015 analysts and investor conference call for deposits and loans will not be achieved.”

Earlier this year, First Bank and Diamond Bank warned investors to expect lower earnings for the 2015 full year because of higher provisions for bad loans. The banks attributed their huge loan losses to Nigeria’s deteriorating macroeconomic conditions caused by low prices.

Last month, FCMB Group reported that its after-tax profits fell by 87 percent year-on-year in the nine months ending on September 30th, 2015. The bank’s provision for loan losses rose five times in nine months to N15.29 billion, compared with N3.912 billion recorded in a similar period in 2014.

Also in February, the ratings agency, Fitch revised the stable outlook on three large Nigerian banks – First Bank Holdings, GT Bank, and UBA – because of their significant exposures to the oil gas sector amidst the rout in oil prices.

Fitch, however, retained its stable outlook for six other Nigerian banks, citing their “intrinsic creditworthiness” and limited reliance on foreign borrowing.
 
“Ecobank remains confident in its diversified business model and the long-term prospects for growth in Africa and share equal confidence in our dedicated staff,” ETI said.

ETI is one of the largest financial services group in Africa with operations in 36 African countries and over $23 billion in assets. In nine months ended in September last year, Ecobank reported revenues of $1.59 billion and profits of $265 million.