Bank of Africa Benin Reports Decline in H1 2024 Profit

AFRICAN STOCKS AND FINANCENovember 28, 2024 at 1:22 PM UTC

TLDR

BOA Benin (BOAB) recorded a 13% decline in net profit to CFA 10.93 billion in the first half of 2024, with net banking income dropping by 3%.
Client loans grew by 3.7% year-over-year, while customer deposits rose by 0.7%, driven by a shift towards remunerated deposits.
Economic growth in Benin is projected to reach 6% in 2024, supported by private investments and industrial activities in the Glo Djigbé zone.

Bank of Africa Benin (BOAB) recorded a 13% decline in net profit to CFA 10.93 billion for the first half of 2024, compared to CFA 12.54 billion in the same period last year. Net banking income dropped by 3% to CFA 23.19 billion, impacted by higher interest expenses and reduced foreign exchange gains due to the Niger border closure and the naira’s depreciation.

Client loans grew by 3.7% year-over-year, while customer deposits rose by 0.7%, driven by a shift toward remunerated deposits. However, the total assets fell by 2.4%, reflecting reduced securities portfolios. Operating expenses remained stable, with an unchanged cost-to-income ratio of 49%.

Economic growth in Benin is projected to reach 6% in 2024, supported by private investments and industrial activities in the Glo Djigbé zone. BOA Benin’s performance reflects challenges from regional economic pressures and increased funding costs.

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Key Takeaways

BOA Benin’s performance underscores the impact of regional challenges, including currency volatility and economic disruptions from border closures. Despite modest loan and deposit growth, profitability suffered from higher funding costs and reduced foreign exchange revenue. Sustained economic growth in Benin may provide opportunities to stabilize performance in the coming quarters.

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