Amédée-0506-ok
« The year 2020 was marked by the COVID-19 pandemic, which caused an unprecedented health and economic shock around the world. Despite this difficult context, the group continued its efforts to achieve its objectives and succeeded in maintaining a dynamic of strong growth in its activities and an improvement in its operating ratios. »
Amédée NONFON
Administrative and Financial Director
Director of the PI Treasury

Financial Key Figures 2020

155,395

millions of FCFA

2020
2019
2018
+5.8%

54,831

millions of FCFA

2020
2019
2018
+47%

9,440

millions of FCFA

2020
2019
2018
-48%

318

millions of FCFA

2020
2019
2018
-96%

5

CFA francs

2020
2019
2018
-96%

3,268,244

millions of FCFA

2020
2019
2018
+24%

1,584,872

millions of FCFA

2020
2019
2018
+16%

2,124,048

millions of FCFA

2020
2019
2018
+17%

105,405

millions of FCFA

2020
2019
2018
-5%
Oragroup held its ordinary general meeting on Friday, 18 June 2021, in Lomé, to approve the company’s financial statements for the year ended 31 December 2020, published in accordance with International IFRS.
The year 2020 was marked by the pandemic at COVID-19, which caused an unprecedented health and economic shock worldwide. Despite this challenging environment, the group continued its efforts to achieve its objectives and managed to maintain a dynamic of strong growth in its activities and an improvement in its operating ratios. Compared to 2019, the 2020 financial year ended with a balance sheet size of more than 3,268 billion FCFA, according to IFRS, up 24%, supported by the good performance in terms of customer resource collection with more than 300 billion CFA francs in additional deposits collected, an increase of 17%. Our support for the economy of our countries of presence is estimated at more than 235 billion FCFA in 2020. At the end of 2020, the workforce is 2,092 employees (+4%) with 161 agencies and sales outlets (+2.5%).
Net banking revenue grew by 5.8%, thanks to a very good performance in terms of net interest margin and a preservation of the commission level despite the health crisis.
This performance of GNP, combined with the freezing of certain charge lines, has allowed the improvement of the operating coefficient from 68.3% in 2019 to 64.7% in 2020. However, it should be noted the deterioration of the net cost of credit risk due in particular to the impact of the health crisis on the ability of some of our customers to repay. This degradation was concentrated in the entities of Togo, Chad, Senegal, Gabon, and Guinea. It should also be noted that a significant part of this deterioration in the cost of risk is due to a limited number of historical records. We have made the necessary arrangements for close monitoring of these entities and for specific treatment of these cases, which should allow for the revival of provisions under this heading from the financial year 2021. The very significant efforts made in terms of improving the quality of the portfolio and collection should also make it possible to improve collection performance over the next few years.
The strategy to control operational risks also continued in 2020. For example, we initiated online training for all the Group’s staff to understand and manage these risks properly. The analysis of the net result in the social repositories of our subsidiaries shows the increase of the result in Benin of 38%, in Mauritania of 30%, in Gabon of 7%, on the perimeter of Côte d’Ivoire and branches of 7% and at the level of the Holding of 38%. Togo, Chad, and Guinea experienced declines in profitability. Deposit mobilization is an ongoing priority for the Orabank Group, with a particular focus on low-paid resources. With a growth rate of 17% compared to 2019, we have collected more than 300 billion FCFA new resources after the 695 billion mobilized the last two years.
Net customer credit grew by 16% compared to December 2019, with more than 235 billion direct credits to the economy for all our countries of presence. At the Holding level, turnover according to the SYSCOHADA benchmark is up 18% compared to 2019 and explained mainly by the increase in structured finance products. Operating income grew by 47% while financial income worsened with an increase in financial expenses mainly explained by cash notes contracted in December 2019. With the strong increase in operating income, net income increased by 38% compared to 2019 to FCFA 7,565 million.
Oragroup SA’s consolidated financial statements as at 31 December 2020 are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The auditors, EXCO FICAO and KPMG, conducted an audit of the consolidated financial statements in accordance with international standards and for the fiscal year ended 31 December 2020. A reasonable level of assurance was retained.

Orabank Group Treasury

34%

of NBI is derived from cash revenues

0.4%

growth in Treasury revenues

17 %

growth in customer deposits

« Treasury’s activities continued to drive Group revenue growth in 2020, despite the challenging environment. The stagnation of foreign exchange earnings (commissions), due to the health crisis and its impact on international trade, was offset by the increase in the net cash intermediation margin, which was itself driven by activity in government securities; in line with the Group’s support to our countries in addressing the health crisis. »
Julien KOFFI

Directeur de la Trésorerie PI

Director of the PI Treasury

Highlights of 2020

During the year 2020, our Treasury business has remained in the trend printed in previous years; in terms of the contribution of treasury revenues to the Group’s GNP, with treasury revenues contributing to more than one third of the Group’s GNP.
  • Treasury teams remained focused on our core revenue-contributing businesses: the functions ALM (Asset-Liability Management), Sale of Treasury products and Trading.
  • ALM revenues (net cash intermediation margin) increased significantly and accounted for 51% of Treasury revenues. Foreign exchange and other commission income (including trading), as a result of the decline in volumes linked to the health crisis, has stagnated to 49%. As a reminder, the mix in 2019 was 39/61 in favor of exchange/commission income.
  • The Group’s Market Room (SDM), based in Orabank Togo, has obtained the 7 approvals requested and is now a Specialist in Treasury Securities (SVT) for Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal and Togo.
  • At the end of 2020, our Market Risk Management Tool (ALM Pro) was in production in the following three countries: Togo, Côte d’Ivoire and Benin. Availability in all subsidiaries and branches is expected to be a reality by the end of 2021, and this tool represents a major step forward in our market risk management.
  • In 2020, international trade confirmation lines (LC, SBLC, etc.) with foreign correspondents were maintained at comfortable levels, despite the health crisis affecting international trade. This was achieved not only by increasing existing lines, but also by crowding new major correspondents.