logoBC
Yaoundé - 09 December 2019 -
Bank

Weaker interest rates and higher risk costs could weigh on banks’ 2018 net result  

Weaker interest rates and higher risk costs could weigh on banks’ 2018 net result  
  • Comments   -   Thursday, 18 April 2019 13:31

(Business in Cameroon) - The decline in interest rates compounded with increased costs of risk could significantly affect the net income of Cameroonian banks in 2018. Assumption is based on the escalation of competition between the financial institutions on a market still small though bancarization rate improved.

A recent document from the National Credit Council shows that the overall effective rates on banking loans granted by banks fell in all customer segments (individuals, SMEs, large corporations and the State) at the end of H1 2018. Plus, Beac revealed in its supplementary monetary policy report that the cost of risk has increased within the Cemac zone driven by higher bad debts (+21%).

Not all audited accounts for FY2018 were made public thus any comparison with FY2017 is not yet possible. However, banks achieved a net profit of XAF71.5 billion in 2017, up 266.2% from the previous year. This feat was made possible thanks to the improvement in banking operating income, mainly. In a context where interest rates are much higher than funding costs, margins generated on customer services were solid, reaching XAF178.2 billion.

The top three most profitable banks in 2017 were Société Générale Cameroun (XAF11.9 billion), SCB Cameroun (XAF10.8 billion) and Bicec (XAF9.5 billion).

Idriss Linge

cameroon-new-issuance-of-fungible-treasury-bills-on-beac-market
On December 4, 2019, the Cameroonian Treasury proceeded to the issuance of a 26-week fungible treasury bills on the market of the Bank of Central African...
cameroon-35-of-gas-stations-are-located-in-rural-areas-ministry-of-energy
In Cameroon, 35% of the 835 gas stations in operation as of October 28, 2019 (for the 54 state-approved companies), are located in rural areas. This was...
cameroon-increased-daily-drinking-water-production-by-96-376-m3-between-2018-and-2019
In Cameroon, the national drinking water production increased from 731,080 m3/day to 824,456 m3/day between 2018 and 2019, according to recent data from...
cameroon-safacam-plans-to-invest-xaf3-5-bln-to-extend-its-oil-palm-and-hevea-plantations-in-dizangue
In Cameroon, the Ministry of State’s Property and Land Tenure recently granted an additional 2,000 hectares of land to Société Africaine forestière et...

Mags frontpage


Business in Cameroon n81: November 2019

The growing weight of Moroccan banks in Cameroon


Made in Cameroon products gradually take over supermarkets


Investir au Cameroun n91: Novembre 2019

Le poids croissant des banques marocaines au Cameroun


Le Made in Cameroon progresse dans les supermarchés