Togo-based lender Oragroup posts $30m loss in 2023
TLDR
- Oragroup's financial performance declined significantly in 2023 with a 194.72% drop in profits compared to the previous year.
- Factors contributing to this downturn include a decrease in Net Banking Product (NBP) by 3.21% and a surge in Cost of Risk by 60.95%.
- The decline in Gross Operating Income and adverse trends in risk costs provide insight into the overall decline in the banking group's net result.
Oragroup's financial performance took a significant downturn in 2023, as evidenced by a stark contrast from the previous year's profits. In 2022, the company recorded 19.2 billion FCFA in profit, but by the close of the 2023 financial year, it posted a deficit of 18.19 billion FCFA ($30 million).
This decline can be attributed to several factors. The Net Banking Product (NBP) experienced a slight decrease of 3.21%, falling from 222.43 billion FCFA in 2022 to 215.3 billion FCFA in 2023, indicating a lack of commercial momentum.
Moreover, the Gross Operating Income declined by 24.48%, while the Cost of Risk surged by 60.95%. The quasi-stability of the NBP, coupled with these adverse trends in operating income and risk costs, provides context for the precipitous drop in the banking group's net result.
Key Takeaways
The holding company listed on the BRVM reported an increase of 324.2% in profit to reach 3.48 billion FCFA, alongside retained earnings totaling 8.45 billion FCFA. Bolstered by these robust financial indicators, the distributable profit witnessed a notable uptick from 8.54 billion FCFA in 2022 to 11.93 billion FCFA in 2023, reflecting an increase of 39.8%. Despite this positive financial performance, it's noteworthy that the holding company has opted not to distribute dividends for the fourth consecutive year. Additionally, ongoing discussions concerning the potential acquisition by Vista add a layer of complexity to the company's strategic direction and prospects.
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