Guinea-based Bange Bank sees profit drop 19% to 4.2bn FCFA in 2023
TLDR
- Bange Bank of Equatorial Guinea's net profit declined by 19% in 2023, attributed to a challenging economic situation and increased regulatory rigor.
- Despite the financial challenges, the bank experienced a significant customer base growth from 7,000 to 137,000 customers.
- The substantial increase in customer numbers suggests positive long-term prospects for Bange Bank of Equatorial Guinea.
The Equatorial Guinea unit of Cameroon's Bange Bank faced a challenging year in 2023, with its net profit declining by 19% to 4.2 billion FCFA (around $7 million) and its equity dropping from 80.7 billion FCFA to 60.4 billion FCFA.
Although the BVMAC-listed bank did not specify the causes of this downturn, the bank's Chairman and CEO, Martín Crisanto EBE, attributed the underperformance to a "complicated year" marked by a "difficult economic situation in the sub-region" and "increasing regulatory rigor."
Despite these financial challenges, the bank saw a substantial increase in its customer base, growing from 7,000 to 137,000 customers over the same period. This significant expansion in customer numbers might indicate positive long-term prospects despite the immediate financial setbacks.
Key Takeaways
The growth in Bange Bank's customer base is believed to have been bolstered by the strong performance of its Cameroonian subsidiary. Despite only beginning operations two years ago, the subsidiary rapidly expanded its network to include nine branches across the country. This expansion likely played a key role in attracting a larger customer base. However, despite these operational successes, Bange Bank's share price remained unchanged on the BVMAC following the trading session on August 5. In a significant strategic move, Bange Bank also completed the acquisition of CCEI Bank Benin for 10 billion FCFA. This acquisition marks Bange Bank's entry into the West African market, with CCEI Bank Benin now rebranded as Bange Bank Benin. This expansion is expected to strengthen Bange Bank's regional presence and diversify its market reach.
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