(Togo First) - Advans Congo closed fiscal 2025 with mixed results. Commercial activity and revenues grew, but profitability declined sharply as operating costs and credit risk charges rose.

According to its Pillar III report, net profit fell to 745.8 million Congolese francs in 2025 from 2.15 billion francs in 2024, a drop of around 65% in local currency terms. Converted at the closing exchange rates cited in the report, net profit declined from approximately $756,000 to $342,000, a fall of just over half.

The decline came despite revenue growth. Net financial income, the main indicator of earnings from banking activity, rose 38.5% to 52.8 billion francs in 2025 from 38.1 billion a year earlier.

Gross operating profit also increased 18.6%, rising to 11.68 billion francs from 9.85 billion francs, reflecting sustained momentum in core operations despite an environment still marked by weak household purchasing power, pressure on borrowers' repayment capacity and elevated credit risk.

Loan growth

The growth was also reflected in the loan portfolio. Gross loans reached 119.36 billion francs at end-2025, up from 114.2 billion in 2024. Converted at the closing exchange rates for each year, the portfolio grew from approximately $40.1 million to $54.7 million.

Advans Congo said it served 101,262 clients at end-2025, with 96.05 billion francs in customer deposits and 116.84 billion francs in loans outstanding.

That momentum was accompanied by a sharp rise in costs. General operating expenses climbed 43.7% to nearly 21 billion francs, while staff costs increased 46.8% to 19.7 billion francs.

Those increases should be read in the context of the institution's recent network expansion. Advans Congo opened two new branches in Lubumbashi and Kolwezi, in the Grand Katanga region, during the final quarter of 2024. Those branches operated for a full year in 2025, thereby increasing their contribution to the institution's cost base.

Rising credit risk

The report noted the growing contribution of those branches, supported by strong mining and commercial activity in Haut-Katanga and Lualaba. Since end-2024, Advans Congo has expanded from nine to eleven branches as part of its geographic growth strategy.

Portfolio quality also weighed on results. Gross non-performing loans rose to 10.75 billion francs in 2025 from 8.83 billion francs in 2024, lifting their share of total gross loans to 9% from 7.7%.

To cover the higher risk, the institution increased its provisions on non-performing loans to 6.59 billion francs from 5.33 billion francs a year earlier. Loan loss charges and write-offs totalled 8.76 billion francs in 2025, up from 5.3 billion francs in 2024.

Higher loan-loss charges largely offset gains in net financial income and gross operating profit, pushing net profit lower.

The report also cited an environment marked by Congolese franc volatility and pressure on the repayment capacity of households and businesses. The conversion rates used in the report show a marked appreciation of the franc by year-end, with the dollar falling to 2,181 francs at end-2025 from 2,845 francs at end-2024.

That move could have affected borrowers whose income is denominated in foreign currency but whose obligations are in local currency. However, the Advans Congo report does not draw a direct link between exchange-rate movements and the rise in non-performing loans, and that hypothesis should be treated with caution.

Digital transformation

For 2026, the institution plans to continue its transformation strategy. Priorities include expanding its branch network through new openings in areas with limited access to formal financial services.

Advans Congo also plans to accelerate its digital transformation, including the development of digital services such as its Bank-to-Wallet solution, which enables transfers between Advans accounts and mobile wallets.

The institution also plans to launch new products in agricultural lending, women's entrepreneurship, bancassurance and renewable energy financing.

Timothée Manoke