Bank of Africa Benin Posts 8% Drop in Q1 Net Profit

AFRICAN STOCKS AND FINANCEMay 22, 2025 at 9:43 AM UTC

TLDR

Bank of Africa Benin (BRVM: BOAB), part of Morocco's BMCE Group, reported an 8% decline in first-quarter net profit as rising risk costs offset improved margins
Net profit fell to 4.4 billion CFA francs ($7.5 million) from 4.8 billion CFA francs ($8.2 million) in Q1 2024
The bank said the margin improvement came from a 2% increase in customer interest products and a 12% reduction in global resource costs

Bank of Africa Benin (BRVM: BOAB), part of Morocco's BMCE Group, reported an 8% decline in first-quarter net profit as rising risk costs offset improved margins. Net profit fell to 4.4 billion CFA francs ($7.5 million) from 4.8 billion CFA francs ($8.2 million) in Q1 2024. Pre-tax profit dropped 5% to 4.8 billion CFA francs ($8.2 million) from 5.1 billion CFA francs ($8.6 million).

Net banking income rose 2% to 11.1 billion CFA francs ($18.8 million) from 10.9 billion CFA francs ($18.5 million). The bank's interest margin improved 8% during the quarter. Customer deposits remained stable at 679 billion CFA francs ($1.15 billion) while loans reached 406 billion CFA francs ($689 million) during the sliding year period.

The bank said the margin improvement came from a 2% increase in customer interest products and a 12% reduction in global resource costs. However, higher risk provisions weighed on bottom-line results. Bank of Africa operates across 20 African countries and is majority-owned by Morocco's BMCE Bank Group.

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Points clés à retenir

Bank of Africa Benin's mixed results reflect broader trends in West African banking. While regional banks benefit from economic growth, they face rising credit risks and regulatory pressures. Benin's economy grew 6.1% in 2024, driven by agriculture and services. However, banks must navigate currency volatility and increased provisioning requirements under new banking regulations. The CFA franc zone's monetary policy, managed by the Central Bank of West African States, affects lending rates and liquidity. Recent tightening measures have squeezed margins across the region. Bank of Africa's parent company, BMCE Group, has invested heavily in digital banking across Africa. Mobile banking adoption in Benin reached 45% in 2024, creating new revenue opportunities while reducing branch costs. The bank's focus on small business lending and remittances positions it well for continued growth despite short-term headwinds.

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