Bank of Africa Niger reported a 92% drop in net profit for 2025, according to a statement from its board dated 20 February 2026.
The bank said the decline reflects pressure across Niger’s banking sector as lending activity slowed and asset quality weakened. Industry data show total credit in the country fell 4.1% in 2025, while deposits rose 1% by the end of December. The bank said the operating environment for lenders has become more difficult as economic activity slowed and credit demand weakened.
Bank Of Africa Niger reported a sharper contraction in lending than the wider sector. Its loan portfolio declined 21% over the year. Customer deposits increased 4%, the bank said. The shift indicates cautious credit expansion and tighter risk management across the balance sheet.
The drop in profit was driven by higher risk provisions and charges linked to loan losses. Niger’s banking sector has seen a deterioration in asset quality. The ratio of non-performing loans in the country rose from 24.4% in November 2024 to 28.6% in November 2025, according to sector data cited in the statement. Banks have increased provisions as borrowers face repayment challenges.
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The lender said its financial position remains stable. It reported solvency and liquidity ratios that meet regulatory requirements. The bank also cited support from its parent group, Bank of Africa Group, which operates across several African markets.
Key Takeaways
The profit warning from Bank Of Africa Niger reflects pressure across Niger’s banking sector and parts of the West African Economic and Monetary Union banking system. Regional lenders operate under the supervision of the BCEAO and follow capital and liquidity standards that apply across the CFA franc zone. Despite these rules, banks in Niger face a difficult operating environment linked to political instability, weak economic growth and credit concentration. Many banks in the country have exposure to trade, agriculture and small business borrowers, sectors affected by security risks and reduced cross-border trade. As loan repayment slows, banks increase provisions, which reduces profit. The rise in non-performing loans above 28% shows the scale of the challenge. At the same time, deposit growth remains positive, which indicates households and companies still use the banking system to store liquidity. The decline in lending suggests banks are limiting new credit until asset quality improves. For groups such as Bank Of Africa, which operate across more than 15 African markets, results from smaller subsidiaries often have limited impact on group earnings but can signal trends in frontier banking markets. Investors watching West African banks will focus on asset quality, provisioning levels and loan growth through 2026 to assess whether credit conditions stabilize.
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