Bank of Africa's Senegalese unit grows profit by 9.25% in 2023
TLDR
- BOA Senegal reports strong financial performance in 2023 with a 12.15% increase in net banking income.
- Profit of Senegalese bank listed on BRVM rises by 9.25% to 17.02 billion FCFA, fueled by a 16.72% surge in interest income.
- Bank's transformation rate improves to 68.52%, driven by growth in customer deposits (+5.31%) and loans (+9.77%).
BOA Senegal, the final subsidiary of the BOA group to disclose its annual performance for the 2023 financial year, saw net banking income rise 12.15% to 45.43 billion FCFA ($75 million) year-on-year, primarily fueled by a 16.72% surge in interest and similar income, amounting to 46.63 billion FCFA.
Contrary to the trend of declining cost of risk, which contracted by 33.07% to 4.07 billion FCFA compared to the previous year's 6.08 billion FCFA, the only Senegalese bank listed on the BRVM saw its profit increase by 9.25%, reaching 17.02 billion FCFA in 2023.
Simultaneously, the bank's transformation rate improved to 68.52% compared to 65.7% the previous year, attributed to significant commercial performance marked by increases in customer deposits (+5.31%) and customer loans (+9.77%), reaching 575.03 billion FCFA and 394.01 billion FCFA, respectively.
Key Takeaways
The bank's efforts at the NBI level yielded an operating result of 17.9 billion FCFA, a notable increase of 13.90% compared to 2022's 15.72 billion FCFA. Additionally, the bank has allocated 47% of its profit to shareholders. After the deduction of a 10% IRVM tax, shareholders can expect to receive a net dividend of 300 FCFA, a significant increase from 2022's 187.50 FCFA. Considering the share price of 3,485 FCFA on April 3, 2024, the net dividend yield stands at 8.61%. Over the past year, the stock has demonstrated impressive progress, with a gain of 58.41%, largely attributed to the bank's outstanding interim results. Notably, the share price has risen from 3,200 FCFA at the beginning of the year to 3,485 FCFA as of April 3, 2024.
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