Societe Generale Cote d'Ivoire (SGCI) announced that its net profit remained virtually unchanged in 2025, recording XOF 101.4 billion ($181 million) compared to XOF 101.2 billion ($180.7 million) in the preceding year. This flat outcome highlights a dual trend: robust revenue generation was balanced by a significant increase in the expenses associated with managing credit risk.

The bank's revenue, measured as net banking income, saw a notable increase of almost 5%, reaching XOF 276 billion ($492.7 million). This growth was primarily fueled by an uplift in interest income and a recovery in deposit funding, which reduced SGCI's dependence on central bank refinancing. This cost reduction helped to offset a decline in fee income from market activities, as corporate clients adopted a cautious approach to investment decisions in anticipation of Cote d'Ivoire's presidential elections in the fourth quarter of 2025. Despite these challenges, the bank maintained a low cost-to-income ratio of 38.8%, signaling efficient operational management.

A key financial development was the substantial 29% surge in provisions for absorbing bad loans, escalating to XOF 46.8 billion ($83.5 million). Management explicitly attributed this increase to heightened risks identified within specific segments, with small and medium enterprises (SMEs) cited as a particular source of stress. The bank's non-performing loan (NPL) ratio stood at 8%, with 82% of these loans adequately covered by provisions, suggesting a contained but persistent challenge.

SGCI's balance sheet expanded to XOF 3.77 trillion ($6.73 billion) in 2025. An improved liquidity position was observed as deposits grew at a faster rate than loans, following a period of tighter liquidity in 2024. Demonstrating confidence in its capital adequacy and future prospects, the board proposed a dividend of XOF 2,606 per share, which equates to a high payout ratio of 80% of net profit.

Looking forward to 2026, management anticipates a rebound in investment activity now that the election cycle has concluded. The bank expects new project financing opportunities, particularly those aligned with Cote d'Ivoire's National Development Plan, to serve as significant growth drivers. However, the 29% jump in provisions underscores the need for investors to closely monitor the SME segment. While the high dividend payout suggests management views the credit deterioration as temporary, sustained stress in the SME sector, combined with continued high dividend distributions, could potentially strain capital ratios in future reporting periods.