(Ecofin Agency) – For the first time in 4 years, Societe Generale CI’s net profit for the first half is down. The financial company explains this by an increase in the cost of risk, linked to an exceptional operation on an SME. No further details were provided.
Societe Generale Côte d’Ivoire declared for the first 6 months of the year 2022 a cost of risk with an overall value of 23.8 billion FCFA ($36.5 million). This is 2.6 times the outstanding amount of this indicator over the same period in 2021, and the highest level of cost of risk for a first half, since 2018 data consulted by theEcofin Agency.
« As part of the policy to clean up its credit portfolio, Societe Generale CI has adopted a cautious approach to the risks incurred on certain receivables granted to various SMEs by increasing the provisions to 100% of outstandings, from the first half of 2022. explains the bank in its financial communication.
It also explains that this particular increase is due to an operational risk, the assessment of which was completed during the second quarter of 2022, but does not give more details on this situation. “exceptional”. In the banking sector, the cost of risk is defined as being all the costs inherent in default, counterparty and credit risks, which are borne by banks.
This situation had negative implications on the net result of the first semester. It fell for the first time, after three successive years of increases. The leading WAEMU bank in terms of balance sheet total, savings collected and loans granted to customers in 2021 is optimistic for the rest of the year.
“In the second half of 2022, our prospects for recovering compromised and provisioned debts will help contain the change in the net cost of risk. In addition, we will pursue with determination the implementation of our strategic initiatives around the control of customer risks”, she let know.
On the Abidjan Regional Stock Exchange (BRVM) where it ranks second in terms of stock market values, Societe Generale has posted a 36% increase since the start of the year, according to data from Capital IQ. It is in the top ten listed African banks whose values have increased the most since the beginning of 2022, and in this group it has the best market capitalization ($682.3 million).