profitability close to 52%

profitability close to 52%
profitability close to 52%

(Ecofin Agency) – A stable income environment and continued control of costs allows the SIB to generate a stable margin in line with its previous performances. Despite the low availability of contextual information, BRVM investors seem satisfied with these developments.

At the end of the first quarter of 2024, profitability, which measures the share of net profit made from a company’s turnover, approached 52% for the Société Ivoirienne de Banque (SIB), a subsidiary in Côte d’Ivoire. Ivory of the Moroccan banking group Attijariwafa Bank, according to financial data provided by its managers. Over the same period in 2023, the company was at 50%.

For a net banking product (the equivalent of turnover) of 23.7 billion CFA francs ($39 million), the SIB declared a net profit of 12.3 billion CFA francs over the period. According to the SIB, this performance is due to “good commercial dynamics” which supported an increase in “interest and commission income”. She also cites “ control of operating costs and good management of the cost of risk”.

The bank does not provide details on the entire context which made it possible to achieve this performance. However, a reading of recent economic information provided by the BCEAO indicates that credit activity was sustained between January and April 2024, particularly for the benefit of governments. These mobilized 902.8 billion FCFA over the period, or 41% more (266.1 billion FCFA) compared to the same period in 2023.

Along with the increase in government borrowing, interest rates have also increased, with the weighted average on Treasuries reaching 7.99% (up from 6.34% in April 2023) and 7.66% on bonds. , with 8.11% on loans by auction organized by UMOA-Titres.

SIB’s net profit margin ratio is the second among banks listed on BRVM, with the exception of Ecobank Group which enjoys a wider reach and market than others. The best bank on this indicator is Coris Bank International with a rate of 59.7%, although its profitability for the first quarter of 2024 is down compared to the same period in 2023.

Remember that this level of profitability is not exceptional for the bank, even if it has increased since 2016, reaching around 34%. On the Abidjan Regional Securities Exchange (BRVM), the SIB is showing positive signs in all cases, with a share whose value has increased by 18.7% since the start of the year.

While we are only halfway through the year, this is already better than the performances of 2023 and 2022 and it is 2.6 times the performance of the entire financial sector listed on the stock market. WAEMU. “In terms of outlook, the SIB teams remain mobilized to achieve the objectives of the current financial year,” the institution simply indicated.

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