Regional central bank BCEAO more than doubles profit to $513m in 2023

BREAKING NEWSApril 18, 2024 at 12:54 PM UTC

TLDR

BCEAO, central bank of WAEMU, reports 152% surge in net profit to 315.6 billion FCFA in 2023, driven by substantial rise in interest income.
Total net income grows by 64% to 549.9 billion FCFA, with operating expenses experiencing a moderate 11% increase.
Despite a 49% decline in revenues from foreign exchange operations, the apex bank shows impressive overall performance.

In 2023, the BCEAO, the central bank of the WAEMU states, reported a significant increase in net profit, reaching 315.6 billion FCFA ($513 million), marking a surge of 152% compared to the net profit of 125.3 billion FCFA recorded in 2022.

The apex bank performance can be attributed to the favorable direction of income generated by the institution. Total net income grew 64% to reach 549.9 billion FCFA, primarily driven by a substantial rise in interest income, which more than doubled (+124%).

However, revenues from foreign exchange operations witnessed a decline of 49%. Conversely, operating expenses saw a moderate increase of 11%, capping an impressive performance for the WAEMU bank.

Key Takeaways

The central bank's robust financial results come as no surprise, as banks typically thrive in high-interest rate environments. However, beyond this, the positive outcomes reflect broader monetary stability within the subregion, supported by a pegged currency although an increasingly stronger US dollar impacted foreign exchange earnings. The West African Economic and Monetary Union (UEMOA), comprising Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo, benefits from the stability provided by the CFA Franc, which is pegged to the euro. This arrangement fosters monetary cohesion and facilitates cross-border trade and investment within the region.

CFA franc

BCEAO

WAEMU

Central Bank

Banking

Francophone West Africa