Bank of Africa Niger Expects Profit Decline on Ecowas Sanctions
TLDR
- Bank of Africa Niger expects its 2024 net profit to fall 47% to CFA 5.3 billion
- The bank cited regional liquidity pressures and sanctions imposed by ECOWAS against Niger’s government
- Bank of Africa Niger operates as part of the broader BOA Group, which serves several African markets
Bank of Africa Niger (BOAN) expects its 2024 net profit to fall 47% to CFA 5.3 billion due to a 6% contraction in its balance sheet and a 20% decline in Net Banking Income. The bank cited regional liquidity pressures and sanctions imposed by ECOWAS against Niger’s government in the second half of 2023 as key contributors to its financial performance.
Despite the challenges, the bank successfully secured CFA 15 billion in funding from international lenders in 2024, ensuring adequate liquidity for its clients and offsetting the decline in deposit collection. This fundraising highlights the bank’s solid fundamentals amid macroeconomic uncertainty.
The bank’s Board of Directors, in a meeting held on December 11, 2024, adopted an action plan to address the complex situation. The strategy aims to stabilize operations and set the stage for a return to growth in 2025. Bank of Africa Niger operates as part of the broader BOA Group, which serves several African markets.
Key Takeaways
BOA Niger’s profit drop reflects broader challenges in West Africa’s banking sector. Rising inflation and interest rates have reduced borrowing and increased defaults, while investments in digital transformation strain budgets. Regional banks must improve efficiency and refine risk management to adapt to these conditions. The stock began the year with a share price of 5,390 XOF but has since lost 51.9% off that price valuation, ranking it 45th on the BRVM in terms of year-to-date performance. Shareholders’ worries are compounded by the fact that BOAN has lost 12% of the stock’s value from November 19th to date.
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