Home » Business » A net profit of 56 billion FCFA announced by the BRVM banks for the first quarter of 2020

A net profit of 56 billion FCFA announced by the BRVM banks for the first quarter of 2020

(Agence Ecofin) – The cumulative net profit of 12 banks listed on the Regional Stock Exchange (BRVM) and which have already published their accounts, reached CFAF 56.5 billion ($ 93.14 million) at the end of the first quarter for the year 2020. This figure does not take into account those of Ecobank Transnational Incorporated which has a different status, and BICI CI which has not yet published its accounts. It is up 8.6% compared to that of the same period in 2019.

This increase in net profit, however, hides the fact that for five of the banks analyzed, the quarterly net margin was down, but we note that none of the financial institutions concerned has announced a loss. This positive performance was supported by a cumulative net banking product of FCfa 197.8 billion over the same period.

With the exception of Coris Bank, NSIA Banque CI and BOA Senegal, the NBI of the 9 other banks listed on the BRVM and which published their first quarter results increased significantly, as did the performance of BOA Côte d’Ivoire which posted a 27% increase in its GNP over the period and Societe Generale Côte d’Ivoire which reached 40 billion FCFA.

Several banks that published their results reported pressure on commission income, notably due to a drop in foreign exchange transactions. However, the majority declared solid interest income on loans placed with their respective customers..

In this sub-region where banks already benefit from tax exemptions on the returns they receive from securities issued by the States, no restrictions on the distribution of dividends on behalf of the 2019 financial year have been taken , as is the case in Ghana, South Africa, or even in Uganda. The majority of banks say they are still assessing the economic impacts of covid-19 on their activities, because according to the countries, some have been more affected than others.

In almost all WAEMU countries, containment measures are gradually easing. However, this first news from the banking sector listed on the UEMOA stock exchange, indicates that the resistance to covid-19 by financial companies in the sub-region will be almost as strong as the health response noted.

The second quarter results will offer more perspectives for the various analyzes.

Idriss Linen

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