Société Générale CI Profit Rises 10% Despite Higher Bad Debts
TLDR
- Société Générale Côte d’Ivoire reported a net profit of 53 billion CFA francs ($89.3 million) for the first half of 2025, up 10% year-on-year
- The Ivorian subsidiary of the French banking group holds nearly 19% of the local credit market and 15% of deposits
- The bank’s credit portfolio showed signs of strain. Non-performing loans climbed 12.8% to 7.8% of total loans, while coverage fell from 97% to 91%
BRVM-listed Société Générale Côte d’Ivoire reported a net profit of 53 billion CFA francs ($89.3 million) for the first half of 2025, up 10% year-on-year, supported by higher net interest income and lower costs. The Ivorian subsidiary of the French banking group holds nearly 19% of the local credit market and 15% of deposits.
Net banking income rose 1% to 132 billion CFA, with net interest margin gains offset by a 9.5% decline in commissions. Operating expenses decreased by 3.9%, resulting in an improved cost-to-income ratio of 38.9%.
The bank’s credit portfolio showed signs of strain. Non-performing loans climbed 12.8% to 7.8% of total loans, while coverage fell from 97% to 91%. The cost of risk increased 7% to 18.4 billion CFA, partially weighing on profitability.
Customer deposits grew 9% to 2,935 billion CFA, pushing total assets to 3,724 billion CFA (+6%). Net loans declined 3%, but the loan-to-deposit ratio improved to 82%. Société Générale CI ended the half with a solvency ratio of 17.7%, above the regulatory minimum.
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Key Takeaways
Société Générale CI’s results highlight both resilience and risk in Ivory Coast’s banking sector. Strong deposit growth and cost discipline underpin earnings, but rising non-performing loans suggest pressure on asset quality. The deterioration comes despite a stable macro backdrop, with GDP expected to grow 6.3% in 2025 and inflation held at 2.3%. The BCEAO’s recent rate cut should support credit expansion, yet political uncertainty ahead of presidential elections clouds the outlook. Banks face the challenge of balancing profitability with risk management in a period of potential volatility in private investment. Société Générale CI remains well-capitalized with a solvency ratio nearly 5 percentage points above regulatory requirements. But sustaining growth will depend on controlling bad debts while navigating a competitive lending market. For investors, the results show the importance of monitoring both macroeconomic stability and the bank’s ability to contain credit risk.
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