The subsidiary in Côte d'Ivoire of the pan-African banking group Ecobank has made public its performance of
the 2019 financial year on the Regional Stock Exchange (BRVM) where it is listed, announcing a
net profit of 25.3 billion FCFA. This result is up 22% compared to the 2018 financial year.
Under these conditions, it proposed to its shareholders that a gross dividend of 21.6 billion be distributed
FCFA, up 46% on the same basis of comparison.
Many investors, especially those looking for short-term returns, welcome the
this rather generous announcement. Indeed, when taking into account the value of Ecobank's shares
Côte d'Ivoire on the BRVM, a new investor who would buy them on April 2, 2020, would offer himself a return of
almost 12.34%. This is a level of gain on investing money that far exceeds average returns
bonds issued by the States of the West African Economic and Monetary Union (UEMOA).
Investors who wish to stay with Ecobank CI shares for a long time, should be attentive to the
fundamentals of the bank. This record net result was obtained thanks to a reduction in expenses
operating costs, but above all to an improvement in an indicator called the cost of risk. The bank
does not explain clearly how she managed to bring it down and is content to greet "a
major effort to clean up the loan portfolio”.
It cannot be ruled out that the credit strategy adopted during the year made a certain contribution.
The financial company reduced outstanding customer loans by 12% in favor of an increase in
same amount of investments in the securities. If the securities acquired are those issued by the public treasuries of
WAEMU on the regional money market, this effectively limits the consideration of risk.
In terms of banking activity, both the net interest margin and non-interest income have
shown down. In the first case, the bank explains that this is due to "the increase in charges
interest in connection with the refinancing" with the Central Bank. In the second case, she speaks
a "fall in margins on foreign currency transactions with customers and in commissions
from cash management activities”.