The Mali subsidiary of the Bank of Africa Group (BOA) is in disarray on the regional stock exchange
securities (BRVM), the common financial market of the West African Economic and Monetary Union
(WAEMU). The value of its share fell by 5.85% on March 26, 2020 reaching 805 FCFA, after having
fell by 7% the day before, according to the official news bulletins of the two days.
The BOA Mali share has accumulated so far, a loss in value of 30% since the beginning of the year. Only NSIA
Banque Côte d'Ivoire posted the worst performance of the financial sector on the BRVM (-53.4%).
The market seems to be responding negatively to the proposal made by the board of directors of the bank
that there be no distribution of dividends on behalf of the 2019 financial year. This decision contrasts with
the 2018 and 2017 financial years, when BOA Mali's shareholders were distributed dividends
generous that cumulatively, make nearly 9.3 billion FCFA. In addition to this, it can be noticed that for those
who have a short-term strategy, the value of the share of this bank has accumulated a decline of 98% on its
.
value It is in this context that it is planned to carry out a share capital increase by issuing 3.28
million new shares with a registered value of 1000 FCFA. It's unclear if the company will draw
in its reserves which were 8.7 billion FCFA at the end of 2019 or if it will solicit new investors
to replenish its coffers.
Soliciting the market will not be easy. In view of the current share price in the bank (805 FCFA), the
BOA Mali's market value (CFAF 12.47 billion) is lower than its share capital of CFAF 15.5 billion FCFA. This situation will be closely followed by the small investors who have positioned themselves on this stock and who
currently have neither capital gains nor dividends.
Recall that the financial company ended the year 2019 on mixed performance. The increase to 32
billion CFA francs of its net banking income has been diluted by an increase in its cost of risk, which
after falling by just over 344 million CFA francs in 2018, jumped by 16.13 billion CFA francs, annihilating
the good operational efforts made by the bank.