Economy & Politics

Oragroup: net profit drops (almost) by half in the third quarter of 2020

Oragroup’s net income fell 44% year-on-year in the third quarter of 2020, according to the activity report of the banking group based in Lomé (Togo). As a result of a cost of risk up 35.3% compared to the third quarter of 2019.

The data published on the Abidjan stock exchange by Oragroup show a net profit of 5.093 billion FCFA as of September 30, 2020, against 9.094 billion as of September 30, 2019. “The increase in the net cost of risk by 35.3% compared to in the same period of 2019, led to a deterioration in net income of 44% ”, we read in the bank’s activity report.

Net banking income increased by 3.5% to around 119 billion FCFA on the date considered, against around 115 billion a year earlier. This indicator is supported by “an increase in the net interest margin of 15%, despite the contraction of income from transfer and foreign exchange transactions in the UEMOA and CEMAC zones,” the group explains.

For their part, customer deposits and loans also increased by 24% and 9% respectively between the end of September 2019 and the end of September 2020.

“The third quarter of 2020 is still marked by the COVID 19 pandemic which has caused an unprecedented health and economic shock in the world. Despite this difficult context, the group has continued its efforts to achieve its objectives, “comments Oragroup management.

As a reminder, the group had announced, for the fiscal year ended December 31, 2019, a net profit of CFA 18.327 billion against 12.491 billion a year earlier, up 46.7%.

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