The profitability of banks operating within the West African Monetary Union (UEMOA) improved in 2020, despite a year marked by the coronavirus pandemic. A few concerns mark the outlook for 2021.

In 2020, WAEMU banks showed relative resilience. The increase in profitability is mainly due to a reduction in losses for loss-making banks. Already, the sector's overall net profit represented 23.5% of consolidated net banking income (equivalent to turnover), according to estimates by the Central Bank (BCEAO). In 2018 and 2019, this net margin rate was 19.2% and 21.2% respectively. The improvement in the net margin rate of banks in the sub-region occurs, while net banking income itself increased by 8% over the period analysed.

Also, it can be noted that the profitability coefficient, which measures the weight of net profit on banks' equity, rose to 13.3%, against 11.8% three years ago. Finally, the return on assets rose to 1.2%, compared to 1% in 2018. These indicators are confirmation of the resilience that banks have shown, as an investment sector for those looking for investments. profitable. On the one hand, the banks that made profits presented a positive net result of 620.1 billion FCFA. It was up 3.8%, compared to 16.4% in 2019. It was on the reduction of losses for banks that posted a negative result that the sector improved its profitability. Indeed, the consolidated losses of loss-making banks were 68.2 billion FCFA in 2020, i.e. 50.2% less than in 2019.