BANKING SECTOR : Regional Bank Reports a 38 % Profit Decline at Mid Year
Despite an increase in its activity, La Regional Bank is reported to be facing profit decline of up to 38 per cent by mid year 2023. Sources also say this counter performance stems from new expenses related to the transition of this microfinance institution to a bank.
La Regional Bank posted a profit before taxes of 779.2 million FCFA in the first half of 2023 against 1.2 billion FCFA, a decrease of 37.9 % year-on-year. Reports from viable sources say the decrease is explained by the banks expenses (provisions for general banking risks relating to the portfolio of healthy and sensitive debts, contributions to the Central African Deposit Guarantee Fund, contribution to the Professional Association of credit institutions of Cameroon, recruitment of new resources with banking experience, and so on.
However, despite this performance decline, La Regional Bank records a bullish turnover of 3.05 billion FCFA in the first half of 2023 against 3.03 billion during the same period in 2022 (+ 25.5 million FCFA). The net banking product in the same comparative period shows an increase of 101.6 million FCFA, or 2.7 billion FCFA as of June 30, 2023 against 2.6 billion FCFA in 2022.
For the second half of 2023, the bank is optimistic. « In the second half of the year, the overall performance should improve due to the displayed resilience of the institution which is benefiting in its traditional market segments from the economic recovery », says the bank.
The current year 2023 appears to be the first financial year of La Regional Bank as a credit institution. Indeed, the institution obtained its accreditation as a universal bank on September 2, 2022. The linear comparison of the data of the first six months of 2023 compared to 2022 should integrate the financial consequences of the transition to banking, thus the fluctuation of its net turnover.
Sorelle Ninguem
