Oragroup’s profits slashed by covid-19

Banking

Wednesday, 28 October 2020 16:24

(Togo First) - Like many others, Oragroup’s finances took a hit from the pandemic. According to an activity report published by Abidjan’s stock exchange, the lender’s net result in Q3 2020 was almost halved (44%).

Quarterly profits stood at CFA5.093 billion at the end of September 2020, against CFA9.094 billion last year around the same time. The decrease is among others due to a surge in the cost of risks, as uncertainty increased amidst covid-19.

“A 35.3% increase in the net cost of risks compared to the same period in 2019 has led the net result to fall by 44%,” the Lomé-based group explained.

On the other side, the net banking product increased by 3.5% (from CFA115 billion to CFA119 billion) as the net interest margin grew by 15%, despite dwindled earnings from transfers and currency exchange in the WAEMU and CEMAC. Similarly, deposits and loans rose by 24% and 9% respectively.

The bad performance of the bank contrasts with last year’s when it reported on December 31 a profit of CFA18.327 billion, thus 46.7% more than in 2018.

Ayi Renaud Dossavi

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