According to the Country Director for Senegal of the Central Bank of West African States (BCEAO),
Mouhamadou Al Ahminou Lo, banking activity remained on a bullish momentum during the
first half 2019.
He made the remarks at a press briefing after the quarterly meeting between the
general managers of banks and the Bceao.
The Senegalese banking sector counts at the end of June 2019; three financial holding companies and twenty-nine institutions
of credit divided into twenty-five banks (fourteen large, five medium sizes) as well as four financial institutions.
"These credit institutions cover a large part of the national territory thanks to a network of 604
permanent counters. At the end of June 2019, the number of customer bank accounts stood at 1,885<479/> against 1,817,728 in December 2018, up 3.7%.
Reflecting this trend, the rate of strict banking came out at 21.1 in June 2019, "informs a
document given to the press.
According to the same source, bank activity remained on a bullish momentum during the first
half-year 2019, however at a slower pace than the previous half-year.
"Indeed, at the end of June 2019, the balance sheet total of the banking system stood at 7378.7 billion against 7249.8
billion in December 2018, a half-year increase of 1.3% and an annual increase of 9.1%. This situation
is the result of the increase in net outstanding loans to customers of 180.5 billion (+4.1%),
mitigated by the decline in securities held by Senegalese banks (-11.3 billion; -0.8%)," reads the
document.
Regarding deposits and borrowings, they are valued at 5031.4 billion in June 2019 against 4829.7 billion
in December 2018, up 201.7 billion (+4.2%) and 10.1% year-on-year. They are distributed
between demand deposits (2852.5 billion, +6.1%) and term deposits (2178.9 billion; +1.8%).
Equity and similar resources remained almost stable with a slight increase
of 0.6 billion (+0.1%), from 701.1 billion in December 2018 to 701.7 billion in June 2019, account
excluding allocations of 2018 results.
With regard to bank conditions, institutions kept their base rates unchanged
banking within a range of 7.0% to 9.0%.
In terms of profitability, credit institutions achieved a net result for the 2018 financial year
beneficiary of 94.3 billion, down 5.1 billion (-5.1%) compared to the previous year.
With regard to the return on equity (ROE), determined through the ratio
between net income and total equity, it stood at 13.8% in 2018.
Under the prudential framework, the own funds of credit institutions have been strengthened in line with the
new Basel standards (Basel II and III) to reach 576.4 billion in December 2018.