Ivorian banking firm SIB to double capital base to $33m

AFRICAN STOCKS AND FINANCEJune 12, 2024 at 9:49 PM UTC

TLDR

SIB plans to increase capital by 10 billion FCFA to comply with new BCEAO regulations effective from January 1, 2027.
SIB's 2023 financial year ended with a net result growth of 8.5%, driven by a 14% increase in net banking income (NBI) to 94 billion FCFA.
Shareholders of SIB will receive a gross dividend of 550 FCFA per share, amounting to 27.5 billion FCFA.

Société Ivoirienne de Banque (SIB), the Ivorian subsidiary of the Moroccan group Attijariwafa, plans to increase its capital by 10 billion FCFA ($16.3 million) to comply with new BCEAO regulations that set a higher threshold for capital requirements, effective from January 1, 2027.

SIB ended the 2023 financial year with a net result of 43 billion FCFA, reflecting an annual growth of 8.5%, driven by a 14% increase in net banking income (NBI) to 94 billion FCFA. The bank's total assets grew by 7% to 1,606 billion FCFA.

Shareholders will receive a gross dividend of 550 FCFA per share, amounting to 27.5 billion FCFA. As of January, over half of the thirty banks in the Ivorian market had capital below 20 billion FCFA - the new capital base requirement.

Key Takeaways

A wave of banking recapitalization is gaining momentum across Africa. In Nigeria, the Central Bank of Nigeria's new rule mandates that commercial banks with international authorization must have a minimum capital of N500 billion ($344.83 million). Over 20 lenders in Nigeria need to raise additional capital within two years to meet this new threshold. Kenya is also considering similar measures to strengthen its banking sector. This trend underscores a regional push to bolster financial stability and resilience, ensuring that banks are better capitalized to withstand economic fluctuations and support sustainable growth.

Société Ivoirienne de Banque

Attijariwafa

BCEAO

SIB

Stocks

Banking

Recapitalization

Financial Services

Central Bank