Message from the Chairman of the board
In light of Oragroup’s 2017 results, what is your assessment of the “Consolidation and Efficiency” three-year plan for 2016-2018?
Orabank continues to consolidate its growth, enhance group coherence and put flesh on the bones of a comprehensive corporate strategy based on strong values, which are expressed through governance and management methods. The excellent 2017 results vindicate, once and for all, our strategy of building a leading universal bank with substantial operations in 12 African countries, which is paving the way towards new development prospects for the Orabank network. We are proud to be contributing, through Oragroup, to financing for the real economy, particularly SMEs, a segment that represents extraordinary growth potential in Africa.
Does responsible engagement enhance the growth model?
The Orabank group is developing its positioning as a bank that is close to and committed to its customers, and is harnessing its expertise and solidity for the benefit of those customers, and of the peoples and, therefore, the economies of the countries where we operate. We think that having a positive development impact complements profitability and we are seeking, in particular, to support the companies that will soon be flying the flag for the African continent and shaping its future.
How do you see the way in which you at Oragroup engage?
Since the injection of capital in 2008 and the birth of Oragroup, the group has gradually reached the scale of a pan-African universal bank. In my capacity as Chair of the Board of Directors of Oragroup and, at the same time, co-CEO of Emerging Capital Partners (ECP), Oragroup’s majority shareholder, I am particularly pleased with the group’s direction, which validates our long-term investment strategy. The capital raised is bolstering Africa’s increasing appeal and allure to international investors on the look-out for new destinations among the emerging economies. We are much more than shareholders: we are accelerators of growth and a launchpad for leading figures in the region.
Those good methods are also means of achieving the fundamental goal of Africapitalism: creating shared value. Private equity can play a key role, provided that it respects a number of rules: seeking to use local resources, pushing African talent, setting up regional or pan-African platforms, taking a punt on sectors woven into the fabric of economies and serving the new classes of consumer.
It is also our desire and our ambition to make a major contribution to developing a robust African financial market capable of financing the development of national and regional economies. That is what we at Oragroup are achieving and we want to continue in that vein.
Message from the CEO
Could you give us a breakdown of the Orabank group’s 2017 results?
We have continued and ramped up our initiatives to consolidate our businesses and optimise our networks, with robust earnings growth into the bargain:
- Balance-sheet total of CFA F1.794 trillion
- Net interest income of CFA F108 billion
- Operating ratio of 70%
- Net income of CFA F21.97 billion
- Group’s share of the net income of over CFA F17 billion
- Equity capital of CFA F107 billion
It should also be highlighted that significant sources of financing have been secured: the issue of commercial paper in the amount of CFA F35 billion (€53.3 million) on the regional financial market of the West African Economic and Monetary Union (WEAMU); two loans, each of CFA F10 billion, from the West African Development Bank (BOAD); and €40 million from the Islamic Corporation for the Development of the Private Sector (ICD). Another major event in 2017 was the opening of a regional and international trading room in Lomé, which is an expression of the group’s strong desire to contribute actively to the development of a regional financial market.
Can you please describe Orabank’s economic and competition environment?
Africa’s continental boom, the growth of intra-African trade, the emergence of a middle class and of a body of SMEs, infrastructure requirements, the prospects for consolidation of the global economic recovery and the digitalisation of some financial services are other factors that position us as a major player in Africa’s development, for the benefit of the people of the continent. The regional banking landscape is dominated by 28 banking groups, which control a total of 100 institutions and account for some 87% of market share. The constant emergence of new players is ratcheting up competition, but market shares are growing, not least with the expansion of networks and the improvement of service quality to better meet customers’ demands for closeness.
What are your development prospects?
The prospects are good, both for the group and for its subsidiaries in 12 countries. We will be expanding on all four arms of our development strategy: the consolidation of a group that shares a common vision and values, the pursuit of growth while keeping costs down, cost of risk control, and the mobilisation of resources to buttress the group’s financial solidity. In all these areas, the bank is indisputably heading in the right direction. Teamwork has played a key role in consolidating our group’s gains in terms of the financial performances necessary as foundations for its pan-African growth. Our vision is to build a leading pan-African banking group that plays a part in financing the sustainable development of an emerging Africa. We aspire to set the standard for fostering economic and social inclusion, so that everyone can live better together. In a spirit of partnership and building together, we hope to create value for the company and for all of its stakeholders.