The Umoa Banking Commission published its new annual report on October 29. here are the
key figures.
2018 saw the entry into force of several major reforms initiated by the monetary authorities and
to strengthen the soundness and resilience of the banking sector of the West African Monetary Union
(Umoa). These include the revised Appendix to the Agreement governing the Commission Bancaire, the plan
revised banking accounting system and the new prudential system applicable to credit institutions and
financial companies inspired by Ble II and Ble III standards.
Thanks to these efforts, there was “good solvency of the banking system” and the capitalization of the systems
large decentralized financial institutions which remain "satisfactory". This, with ratios higher than
minimums in force, respectively 8.625% and 15%, welcomed Tiémoko Meyliet Koné, the
governor of the BCEAO. Indeed, the average overall solvency ratio of credit institutions in
the Union stood at 10.8% in 2018, therefore beyond the minimum standard of 8.625% required at the end of 2018, and
that of the Sfd stood at 20% in 2018 compared to 19.1% in 2017, for a minimum standard of 15%. In this
With regard to the results, the balance sheet total of credit institutions in operation stands at 37,752.9
billion FCfa, an increase of 6.8% compared to 2017. At the same time, the banking network continued
its extension. The number of approved credit institutions in UMOA fell from 143 in 2017 to 147 in
2018. Ditto for the number of branches and offices and that of customer accounts which have increased
417 units (+13.0%) and 568,814 units (+5.0%) respectively. The banking system has 2,976
ATMs, up 268 units (+9.9%).
GNP up 6%
Net uses increased by 7.3% to reach CFAF 32,798.1 billion, of which 63.7% was loans to
customers and 20.4% investment securities. The gross and net portfolio deterioration rates emerged
12.3% and 4.8% respectively in 2018 compared to 13% and 5.4% in 2017.
As for the overall resources mobilized by the banking sector, they increased by 10.4% to
set at 29,848.4 billion FCfa. They consist of 84.1% of deposits and borrowings from the
customers, up 10.4%. With regard to shareholders' equity and similar resources, they
of 349.8 billion. Net Banking Income (GNP) also increased by 6.0% with
FCfa 1,969.1 billion in 2018. On the other hand, gross operating income fell to FCfa 730.2 billion.
FCfa, i.e. 4.2%. The net result, standing at 456.9 billion FCfa, increased by 24% compared to
2017. The net cost/income ratio stood at 67.4% compared to 65.9% in 2017.
The balance sheet total of Decentralized Financial Systems (Sfd) also increased by 6.1% compared to
compared to 2017, reaching 1,974.4 billion FCfa. As for resources, they increased by 6.3%
to settle at 1,519.2 billion FCfa. The gross and net portfolio deterioration rates increased by
0.1 and 0.2 percentage points, from 5.3% and 2.8% respectively in 2017 to 5.4% and 3% one year
later. Finally, the number of electronic money institutions remained stable at 8 in 2018. The
number of electronic money accounts opened stands at 37,001,348, of which 48.4% are active accounts.
Transactions carried out through mobile telephony involved a volume of 1,714,662,386
operations for a total amount of 20.687 billion FCfa in 2018.
Massive cash injection
In addition, the Bceao continued, throughout 2018, its policy of massive liquidity injection
in order to provide banks with the resources necessary for the proper functioning of the money market and
to lower interest rates. Thus, on the weekly window of calls for tenders, the amount put up for auction increased from 3.125 billion FCfa in January 2018 to 3.350 billion FCfa in December
2018, i.e. an increase of 7.2% compared to 45.3% in 2017. The average amount of injections
weekly liquidity in 2018 stood at FCfa 3,044.9 billion, almost stable compared to its
level of 3,013.2 billion FCfa in 2017 and an increase of 64.9% compared to that of 2016. Maintaining
of this relatively large level of one-week advances "reflects the will of the monetary authorities
to support credit institutions in financing economic activity in the Union",
points out the report.