Togolese Lender Oragroup Posts Strong Q1 Profit Despite Revenue Dip
TLDR
- Oragroup reported a net profit of 4.8 billion FCFA ($8.3 million) in Q1 2025, a 259% increase from the previous year's loss of 3 billion FCFA ($5.2 million)
- The West African banking group achieved this turnaround despite a 2% decline in net banking income to 51.1 billion FCFA ($88.5 million)
- Cost-cutting measures drove the profit surge, with risk costs down 60% and general expenses reduced by 1%
Oragroup (BRVM: ORGT) reported a net profit of 4.8 billion FCFA ($8.3 million) in Q1 2025, a 259% increase from the previous year's loss of 3 billion FCFA ($5.2 million). The West African banking group achieved this turnaround despite a 2% decline in net banking income to 51.1 billion FCFA ($88.5 million).
Pre-tax profit reached 5.8 billion FCFA ($10 million), recovering from a 1.7 billion FCFA ($2.9 million) loss in Q1 2024. Cost-cutting measures drove the profit surge, with risk costs down 60% and general expenses reduced by 1%. This offsets challenges from global trade conflicts that have disrupted financial markets.
Customer deposits fell 6% to 2.92 trillion FCFA ($5.1 billion), while net credits declined 18% to 1.62 trillion FCFA ($2.8 billion). The bank plans to intensify efforts to mobilize lower-cost resources in the coming quarters to support deposit growth and lending in its markets.
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Key Takeaways
Oragroup operates in 12 countries across West and Central Africa, including Benin, Burkina Faso, Chad, Gabon, Guinea, Ivory Coast, Mali, Mauritania, Niger, Senegal, and Togo. The group has weathered significant regional challenges while implementing its strategic plan focused on digital transformation. The banking sector across West Africa faces headwinds from currency volatility and political instability in several countries. Despite these obstacles, financial institutions like Oragroup have leveraged cost optimization and risk management improvements to maintain profitability. The group's transition toward more efficient funding sources reflects broader trends in African banking, where institutions are increasingly focusing on operational efficiency amid economic uncertainty. This strategy has particular importance in the UEMOA zone, where Oragroup maintains significant operations.
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