Oragroup Swings Back to Profit in 2025 After Steep 2024 Loss

Banking

Friday, 08 May 2026 15:40

Oragroup Swings Back to Profit in 2025 After Steep 2024 Loss

(Togo First) - Oragroup, the Lomé-based banking group, returned to profit in 2025 after posting a loss of 44.4 billion CFA francs the previous year. The group reported a consolidated net profit of 21.6 billion CFA francs for the year ended Dec. 31, 2025.

Oragroup, which operates in 12 West and Central African countries, attributed the turnaround to cost-cutting measures, tighter risk management and stronger loan recovery efforts.

Cost of risk fell 90%, dropping from nearly 69 billion CFA francs in 2024 to 6.9 billion CFA francs in 2025. Operating expenses declined 12%, while pre-provision operating profit rose 49% to 36.1 billion CFA francs.

The improvement came despite a 5% decline in net banking income, which fell to 186.6 billion CFA francs. The group said the decrease reflected a more selective approach to risk-taking and efforts to reduce concentration in certain sectors.

Total assets exceeded 4,014 billion CFA francs, while shareholders’ equity rose 17%. Customer deposits increased 5% to more than 3,088 billion CFA francs.

No Dividends for Shareholders

Despite returning to profit, Oragroup does not plan to distribute dividends. The group said it would retain earnings to strengthen its capital base after several years of financial strain and the collapse of a proposed acquisition by Vista Group.

The recovery is part of a strategy launched in 2023 focused on cutting costs, tightening oversight of the loan book and strengthening risk controls.

Early 2026 figures suggest the trend is continuing. Oragroup said net profit was already up 37% in the first quarter, while deposits rose 14% year-on-year.

A fragile recovery?

Oragroup’s difficulties between 2023 and 2024 were severe. The group posted a net loss of 18.2 billion CFA francs in 2023, which widened to 44.4 billion CFA francs in 2024.

Financial difficulties were compounded by internal tensions. Industry media reported a governance crisis, the departure of senior executives and reduced lending activity in some subsidiaries.

The attempted acquisition by Vista Group had been viewed as a potential route to recapitalization and stabilization. A deal was announced in 2023 for the purchase of more than 61% of Oragroup’s capital, but the transaction collapsed in 2025 due to regulatory constraints, the group’s persistent financial difficulties and concerns over asset quality.

Since 2025, Oragroup has adopted a more cautious strategy focused on cost reductions, improving asset quality and tighter lending standards.

While the return to profit points to a more stable outlook, significant challenges remain. The group will need to sustain profitability, strengthen its capital base, improve loan quality and maintain investor confidence while gradually expanding lending without taking on excessive risk.

Ayi Renaud Dossavi

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