• SGCI posts 10% profit rise to $89.3M in H1 2025
• Strong deposits growth, but non-performing loans up 12.8%
• Political uncertainty, election risks cloud banking sector outlook

Société Générale Côte d’Ivoire (SGCI) reported a strong first half of 2025, with net profit rising 10% year-on-year to 53 billion CFA francs ($89.3 million). The performance solidifies the bank's position as a leader in the Ivorian banking sector, holding nearly 19% of the credit market and 15% of deposits. However, rising non-performing loans and political uncertainty ahead of an upcoming presidential election are casting a shadow over the bank's results.

The bank's net banking income (PNB) grew by a modest 1% to 132 billion CFA francs. This limited growth reflects a healthy 6% increase in net interest income, but also a 9.5% decline in commissions due to competitive pressures. Strict cost controls helped reduce overhead by 3.9%, improving the bank’s cost-to-income ratio to 38.9%.

Despite this operational efficiency, SGCI’s loan portfolio shows signs of strain. Non-performing loans (NPLs) increased by 12.8% year-on-year. The gross NPL ratio rose to 7.8% from 6.7% a year earlier, while loan loss coverage declined from 97% to 91%. As a result, the cost of risk increased by 7% to 18.4 billion CFA francs, partially offsetting the bank’s gains.

On the balance sheet, the bank's total assets grew by 6% to 3,724 billion CFA francs, driven by a 9% rise in customer deposits to 2,935 billion CFA francs. Although net loans slightly decreased by 3%, the loan-to-deposit ratio improved significantly to 82%, indicating a robust liquidity profile. With a solvency ratio of 17.7%, SGCI remains well above the regulatory requirement of 12.5%.

The broader Ivorian economic context remains favorable, with projected growth of 6.3% and contained inflation at 2.3%. The Central Bank of West African States (BCEAO) decision in June to lower its key interest rates by 25 basis points is also expected to support lending activity. However, private investment could slow as the country heads into a presidential election, introducing political uncertainty that may temper the credit market.

Fiacre E. Kakpo