Bank of Africa Madagascar has weathered some devastating storms in the past few years, to emerge stronger and better focused thanks to vigorous management control of costs and activities. The bank has fully overcome the monumental difficulties posed by the adoption of a new currency and a series of devastating cyclones that struck the country in quick succession. These were heavy blows, coming on top of inflation and balance-of-trade consequences resulting from exchange rate depreciation.
In the face of these challenges, last year the bank turned in an impressive financial results performance: Tier 1 capital was held steady, assets grew by 37.2% and net profits rose by a hefty 41.5%, a major achievement given the country’s economic uncertainties. Madagascar went though a period of heightened political uncertainties in 2006, a pre-election year. Nevertheless, the results obtained were above expectations.
The bank has successfully completed in its three-year development plan, which started in 2004, which has brought modernisation of the branch network, including investment in the physical structures, IT systems and other equipment. The bank now has a state-of-the-art platform in place. The branch network grew to 53 offices in 2006, and the bank launched an initiative to connect all its branches by real time. The group also put into place its first Western Union international money transfer offices.
In this period, Bank of Africa Madagascar increased its customer base by 51.1%, net profits by a cumulative 175.6% and considerably improved its cost-income ratio.
