Financial results

Financial Key Figures 2019

146,852

millions of FCFA

2019
2018
+16%

46,495

millions of FCFA

2019
2018
+32%

18,327

millions of FCFA

2019
2018
+47%

9,806

millions of FCFA

2019
2018
+23%

142

CFA francs

2019
2018
+24%

2,634,338

millions of FCFA

2019
2018
+22%

1,366,206

millions of FCFA

2019
2018
+13%

1,822,532

millions of FCFA

2019
2018
+25%

111,571

millions of FCFA

2019
2018
+3%
Amédée-0506-ok
The year 2019 marked a turning point for Oragroup, thanks in particular to its listing on the Regional Stock Exchange (BRVM) in Lomé. The introduction of this stock exchange is both the culmination of a work that has been carried out for the last 10 years, but also and above all an incentive to continue along the same path. Market confidence confirmed the strength of the Oragroup model and the Group’s growth potential.
Amédée NONFON
Administrative and Financial Director
Oragroup held its ordinary general meeting on Monday, June 29, 2020 in Lomé, for approval of the company’s financial statements for the year ended December 31, 2019, issued in accordance with International IFRS.
Oragroup had excellent results, with a total balance sheet of 2,634.3 billion CFA francs, an increase of 22% compared with the previous year. The deposits of the customers of the entire Orabank network amount to 1 822.5 billion CFA francs with more than 360 billion CFA francs collected and the claims on the customers to 1 366.2 billion CFA francs, an increase of more than 160 billion CFA francs. The transformation rate improved markedly from 92.6% in December 2018 to 83.1% in December 2019.
The Group has a net bank income of 146.9 billion CFA francs (+16%) and a consolidated net income of a very high increase of 47% to 18.3 billion CFA francs.
This evolution shows the good performance noted on all revenue lines. The increase in overhead costs of 9.6% compared to 2018 is due to the strengthening of our teams from 1,853 employees at the end of 2018 to 2,015 in 2019 and the expansion of our network of agencies from 146 in 2018 to 157 in 2019. Our operating coefficient improved markedly from 72.2% in 2018 to 68.2% in 2019. The net cost of the risk is up 26% and is due to the delay in recoveries that are expected to result in recoveries of provisions on almost all subsidiaries.
The year 2019 marked a turning point for Oragroup, thanks in particular to its entry on 16 April 2019 on the Regional Stock Exchange (BRVM) at the first listing ceremony in Lomé. This market launch – the most important since the creation of the BRVM in 1998 – is both the result of work that has been done over the past 10 years and, above all, an incentive to continue along the same path. Market confidence confirmed the strength of the Oragroup model and the Group’s growth potential.
With its 20% equity listing, Oragroup wanted to accelerate its growth trajectory, which is confirmed today by 2019 results that are up sharply. By jointly increasing capital and divesting shares, Oragroup had dedicated its regional anchor and attractiveness to actively contribute to the development of the regional financial market.
The consolidated financial statements of Oragroup SA as at 31 December 2019 are prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The auditors, EXCO FICAO and KPMG, carried out an audit of the consolidated financial statements in accordance with international standards and for the fiscal year ended 31 December 2019. A reasonable level of insurance was selected.

Orabank Group Treasury

36%

of NBI is derived from cash revenues

14%

growth in Treasury revenues

25 %

growth in customer deposits

julien_koffi
Treasury’s activities continued to grow the Group’s revenues in 2019, including through gains and commissions on foreign exchange, in line with our overall strategy.
Julien KOFFI

Directeur de la Trésorerie PI

Director of the PI Treasury

Highlights of 2019

In 2019, our Treasury business remained in line with the trend in previous years; notably in terms of the contribution of Treasury revenues to the Group’s GNP.
The Treasury teams remained focused on our main revenue-contributing occupations: ALM (Asset-Liability Management), Sales of Treasury products and Trading. ALM revenues (net margin of intermediation Treasury) represent 39% of Treasury revenues and foreign exchange revenues and other commissions (including trading) account for 61%.
The Group’s Markets Room (MDS), based in Orabank Togo, has achieved performance above the targets set. In addition, 2019 was the year of two major advances to the MDS, in the direction of dematerializing our operations in order to better control our risks:
  • The deployment of our Orabank FX home platform, now used by all subsidiaries for foreign currency repositioning operations.
  • The upgrade of our Market Room software for the FX Spot and FX Forward modules, as well as the acquisition of the Desk ALM modules: Securities Module, Money Market Module and Pension Module Delivered (repo).
In 2019, the confirmation lines for international trade transactions (LC, SBLC, etc.) with foreign correspondents increased by about 64%, in line with our growth strategy for our Trade Finance activities.
The problem of risk management is not over. In addition to the limits of foreign exchange positions and the internal balance sheet limits approved and monitored for each of our countries, in 2019, a Treasury Directorate Policy and Procedures Manual was approved by the Board of Directors of the Group and Subsidiaries. This policy strengthens our risk management system in addition to the existing Market Risk Management Policy Manual.