The net profit of NSIA Banque Côte d'Ivoire, a member of the financial group of the same name, fell by 11%  in the first quarter of 2020 compared to the same period of 2019, announced the leaders of this banking institution based in Abidjan.

This result stood at  2.510 billion CFA francs at 31 March 2020 against  2.817 billion CFA francs at 31 March 2019, a contraction of 307 million CFA francs in absolute terms. According to the bank's officials, the quarterly result was impacted on the one hand by a quasi-stability of the net banking income (GNP) and on the other hand by the 10% drop in profit before tax.  

The GNP of NSIA Banque Côte d'Ivoire thus came to 15.796 billion FCFA against 17.877 billion FCFA in the first quarter of 2019, a slight decrease of 1% in relative value. This situation results on the one hand from the increase in the interest margin of 9% which stood at 11.3 billion FCFA at 31 March 2020 against 10.4 billion FCFA at 31 March 2019 and on the other hand from  the 20% decrease in commissions, which increased from CFAF 5.6 billion at March 31, 2019 to CFAF 4.5 billion a year later. More specifically, with regard to commissions, the managers of NSIA Banque Côte d'Ivoire link their decline to the contraction of commissions on financial services and a restatement of commissions on cash management. But they specify that this evolution is consistent with the budget.

During the period under review, the bank's net outstanding credit increased by 5% to CFAF 829 billion. At the same time, the outstanding resources collected stood at CFAF 813 billion, an increase of 14%.

Selo the directors of NSIA Bank Côte d'Ivoire, the securitization operation of part of its debt portfolio allowed the bank to raise 40 billion FCFA in February 2020 to support the development of SMEs. " It was successfully completed and won a strong adherence of individual subscribers," they said, adding that the impact on the bank's balance sheet will be materialized in the second quarter.

The result before taxes fell by 10%, to 3.208 billion FCFA while it stood at 3.573 billion FCFA in the first quarter of 2019. This evolution is the consequence of the increase in management expenses (personnel costs, general expenses, depreciation expenses) by 13% to 11.7 billion FCFA against 10.3 billion FCFA at March 31, 2019.

With the beginning of 2020 marked by uncertainties related to the evolution of the coronavirus pandemic, NSIA Banque Côte d'Ivoire officials say they have deployed a business continuity plan to maintain the bank's level of service and to be at the top of the list. customers. The Crisis Committee, constituted within the Board of Directors, ensures the implementation of all urgent measures required by the management of the pandemic. According to them, these provisions to limit the spread of COVID 19 have led to a reorganization of the Bank (modification of working hours, reduction of the workforce present by the organization of the rotation of teams, the temporary closure of branches on Saturdays during the month of April 2020 ...). " At the beginning of the second quarter, they also generated exceptional overhead expenses," said the bank's executives. They add that the slowdown in economic activity observed in this context of crisis will have a negative impact on the Bank's GNP and will most likely lead to an increase in the cost of risk and possibly tensions on liquidity.

On another note, NSIA Banque Côte d'Ivoire has finalized its customer support system in accordance with the BCEAO's opinion 005-04-2020 on the postponement of maturities of the claims of credit institutions affected by the COVID 19 pandemic of the first of April 2020. " This system will have consequences Equences on the GNP since it induces an absence of interest income over the period of postponement which can extend up to 6 months , "projected the managers of this banking institution.

Nevertheless, they are of the view that the Bank's measures to strengthen the commitment and liquidity monitoring framework should help limit cash flow pressures and the impact on portfolio quality.

In addition, the bank's management has committed to continue to ensure the control of operating expenses over the coming quarters in order to guarantee profitability.

The directors of NSIA Banque Côte d'Ivoire announced that they had the authorization of the WAMU Banking Commission on April 21, 2020 concerning the partial contribution of assets of the Ivorian branch of NSIA Banque Bénin to NSIA Banque Côte d'Ivoire. " Pending the decision of the Council Regional Public Savings and Financial Markets, they stress, the next quarter will be devoted to the more active preparation of the operational recovery of Diamond Bank Côte d'Ivoire ".