BOA Togo’s turnover falls for the first time since it launched in the country

Friday, 16 September 2022 14:13
BOA Togo’s turnover falls for the first time since it launched in the country

(Togo First) - BOA Togo, the local subsidiary of the Bank of Africa Group, recorded, in 2021, its biggest net profit since it started operating in the country in October 2013. Togo First obtained the information from BOA’s annual financial reports.

During its first three years in Togo, BOA was in the red but since 2017 it started recording a positive net profit. Last year, the net profit soared by 194% compared to the year before. That is also the biggest increase ever reported since 2013.

This performance, however, contrasts with the banking activity. While it has grown at an average rate of 45% per year since 2014, BOA Togo’s Net Banking Product (NBP) -which banks equal to their turnover- fell by about 16%, from CFA11.7 billion to CFA9.8 billion. This is the first time the lender’s turnover drops.

Although interest income held up despite a 2% decline in outstanding loans, this mixed revenue performance was mainly due to a 42% decline in commissions on services provided by the bank and a significant loss (-332%) on investment portfolio transactions.

However, the data assessed by Togo First shows that the counter-performance only impacted BOA’s net result. This was thanks to the control of the cost of risk. The latter is a key indicator that rose by 74% over the period reviewed; from -5 billion CFA to -1.3 billion CFA. This was enough to mitigate the 41% reduction in operating income.

BOA Togo has 14 branches across the country. Its managing director since August 2021 is Yousef Ibrahimi.94.5% of the Togolese subsidiary is owned by BOA WEST AFRICA, the West African holding company of the BOA group, itself owned by Morocco's BMCE.  BOA is the eighth largest asset in Togo's banking sector.

In 2021, BOA Togo’s total assets increased by 8% to CFA189.8 billion, as did customer deposits, which reached CFA94 billion, while net outstanding financing slumped by 2% to CFA75 billion. At the end of December 2021, more than 63,885 bank accounts were open on its books.

Fiacre E. Kakpo

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