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Gabon: BGFIBank Europe rated AA + by Bloomfield Investment Corporation

The BGFIBank Group announced on September 16 that “following an independent audit of its governance and financial soundness, BGFIBank Europe, the BGFIBank Group’s international hub, received from the Bloomfield rating agency Investment Corporation, the AA + rating ”.

Bloomfield Investment Corporation has given BGFIBank Europe an excellent rating. According to the BGFIBank Group, this financial rating agency submitted its report during a videoconference meeting attended by Henri-Claude Oyima, Chairman and CEO of the BGFIBank Group and Francesco De Musso, CEO of BGFIBank Europe. This rating “based on a rigorous evaluation covering the period from 2015 to 2019, the ratings obtained AA + in the long term and A1 in the short term have proved to be very satisfactory in the definition and interpretation of the scale of the international financial rating. “

The Rating Agency ensures that the economic model of BGFIBank Europe has gradually evolved, from its creation until 2019. From a model marked by the predominance of the Group (both in terms of resources and business contributed), with an activity centred on the discount of endorsed drafts, the bank has gradually evolved towards a model based on transactional financing, with a decrease in dependence on Group resources.

This transformation took place in particular thanks to exogenous changes, including the fall in the prices of oil and raw materials (leading to a reduction in resources from sister subsidiaries) and the tightening of exchange regulations in the Cemac zone. The implementation of its strategy, backed by the development of the signature as well as financing, has generated a significant increase in net banking income, from 5 million euros in 2015 to 13 million euros in 2019.

After a loss in 2015, the bank recorded a gradual improvement in net income, which stood at 3.3 million euros in 2019. The Rating Agency observes that these performances are maintained by the vitality of its commercial action. , optimal use of its customer network obtained through synergies with its sister subsidiaries in Africa and the creation of a network of correspondents.

These commercial actions are also supported by the strengthening of the risk management framework, through the development and regular updating of a risk appetite policy and risk mapping, which have made it possible to reduce the risk. cost of risk from 5.5 million euros in 2015 to 0.87 million euros in 2019, i.e. 1.1% of the customer portfolio.

In addition, to remove the constraint linked to the decline in liquidity from the Group, BGFIBank Europe has thus oriented its refinancing strategy towards customer resources, thanks to the extension of its authorization obtained in 2015. The share of resources from the The Group thus sank from 61% of the resources collected in 2015 to 30% in 2019.

The pursuit of the development of the bank’s activities should continue over the medium and long term, given the existing potential in terms of international trade between Africa and Europe, and the expertise acquired by BGFIBank Europe.