Banks: Big leap forward in Oragroup S.A’s consolidated net income in the first half of 2021
The consolidated net income of the company Oragroup SA, parent company of the Orabank banking group, has made a big leap forward, progressing by 581% in the first half of 2021 compared to the same period of the year 2020, announced the leaders of this holding company based in Lomé, Togo.
This result has indeed increased from 1.409 billion FCFA on June 30, 2020 to 9.597 billion FCFA a year later, a sharp increase of 8.188 billion FCFA in absolute value. Oragroup achieved a fine performance, especially since this half-year result exceeds the overall result recorded on December 31, 2020, where it stood at 9.440 billion FCFA.
The first six months of the 2021 financial year ended with a balance sheet size of more than 3 489 billion FCFA, up 7% compared to December 31, 2020. According to Oragroup executives, this increase is “particularly sustained” by the good performance in terms of collection of customer resources with more than 331 billion FCFA in additional deposits, an increase of 16%. In addition, they argue that their support for the economy of the countries of presence is estimated at more than 114 billion FCFA in the first half of 2021 against 56 billion FCFA over the same period in 2020.
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The net banking income increased by 15.245 billion FCFA, going from 70.582 billion FCFA in the first half of 2020 to 85.827 billion FCFA in the first half of 2021. In the opinion of the directors of the Bank, this improvement took place thanks to the good performance on all income lines except for foreign exchange commissions. This net banking income has improved the cost / income ratio, which goes from 69.2% in the first half of 2020 to 63.1% in 2021.
General expenses increased by 11% to 54.197 billion FCFA against 48.867 billion FCFA as of June 30, 2020. This development is linked to the strengthening of teams and the development of the branch network.
As for the gross operating income, it strengthened by 46% with an achievement of 31.630 billion FCFA against 21.715 billion FCFA as of June 30, 2020.
On the other hand, Oragroup saw its net cost of risk increased by 22% to 17.668 billion FCFA against 14.503 billion FCFA in the first half of 2020.
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<< Launched in 2019, the second phase of the Digital Financial Services (DFS) project continues; consisting first of all in offering our customers innovative products adapted to their needs and making a positive contribution to the digital transformation of the economies of our countries of presence, by the end of the year we will complete the start-up phase of our omnichannel platform KEAZ, already deployed in 11 countries, ”said Oragroup executives on the outlook for their structure.
According to them, despite the COVID-19 pandemic, their teams are continuing their efforts in terms of performance and profitability, to achieve the objectives set by shareholders in the strict discipline of costs and fine and rigorous risk management.
“All employees remain mobilized around the Group’s financial and social impact objectives with remarkable professionalism and unwavering commitment to serving our customers, despite this difficult period,” notes Oragroup management. She adds that through the new 2021-2025 strategic plan, its organization has further improved, by continuing to develop its activities, to support the return to growth in the countries where it is present.
Source: Financial Afrik