BOA Senegal: financial performance and challenges

On Friday April 19, Bank of Africa (BOA) presented the financial results of its six subsidiaries listed on the Bourse Régionale des Valeurs Mobilières (BRVM) for the year ending December 31, 2023. The Senegalese subsidiary, under the management of Sadio Cissé, maintained steady growth over the previous year despite a difficult economic and political context.

Economic and political challenges

Despite the economic and political challenges of 2023, the BOA Group has maintained a positive momentum. Last year was marked by a tense economic and political environment in the sub-region. Economic growth in the West African Economic and Monetary Union (UEMOA) slowed from 5.7% in 2022 to 4.9% on average. Moreover, the debt of the region's countries remained high, most exceeding 60%.

Multiple challenges for ECOWAS banks

Banks faced multiple challenges, including rising T-bill yields and political instability. Yields on treasury bills rose by over 400 basis points in one year, increasing the cost of the resource and reducing liquidity. On the political front, countries such as Niger have been placed under embargo by the European Union. ECOWASresulting in a downgrade of their sovereign rating.

BOA Group's overall performance "satisfactory

Despite these challenges, BOA's subsidiaries recorded growth. Their outstanding loans increased by 5.1% to reach 2,348 billion CFA francs. In addition, the cumulative total earnings of the six subsidiaries rose significantly, reaching 110 billion CFA francs in 2023, an increase of 18%.

SME growth and market share on the rise

Particularly in SenegalBOA maintained a stable market share in deposits and recorded a significant increase in loans. Market share in loans increased to 5.4%, supported by a 16% growth in the number of SME files. Digitalization, in particular the introduction of Wallet, played a key role in this growth.

Financial results up despite exceptional expenses

On the financial front, BOA Senegal reported an increase in its banking margin, commissions and Net Banking Income (NBI). Net income also posted solid growth of 9.21TP3Q, reaching 17 billion CFA francs despite exceptional charges.

Dividend yield on the rise

On the stock market, the dividend yield rose by 60% in 2023, reflecting the remarkable performance of BOA Sénégal's stock. Although the P/E remains below the market, the dividend is high at 10.4%, reflecting investor confidence in the bank.