Advans Annual Report 2023
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The context was particularly challenging in 4 of our operating
countries: Myanmar due to a political and security situation
that remains very difÏcult; Nigeria, Ghana, and Pakistan, all of
which faced inflation rates of over 30%, resulting in significant
currency depreciations, particularly pronounced for Nigeria.
The financial sector in Cambodia also experienced a rapid
increase in non-performing loans. However, our subsidiary
Amret, thanks to sound risk management and reduced
disbursements, was able to maintain a PAR 30 well below the
sector average.
We ended the year with a contraction of our loan portfolio
by 10.38% to 1.75B. Our PAR 30 remained under control at
2.89%. Our number of clients and deposits remained almost
stable, at €1.32B and 1.12B, respectively. In this challenging
global environment, Africa, which is a strategic priority for the
group, continued to improve its financial performance, with
a consolidated net result across our 6 subsidiaries increasing
by 36.12% due to improved margins, productivity gains, and
controlled risk costs.
Message from the Chairman and CEO
Eelko Bronkhorst
Chairman of the Board
Steven Duchatelle
CEO
2023 was marked by a series of significant achievements
within the Group, demonstrating our ongoing commitment
to excellence and innovation, beginning with significant
progress in our digital transformation AIR+: redesign of
our partnership model, operational processes, and IT
infrastructure, positioning us for sustainable growth and
better adaptation to the changing needs of our clients. We
strengthened our IT development team and established
a team responsible for monitoring and operating internal
systems, leading to a successful transition to a new hosting
partner based in Tunisia.
Furthermore, we undertook significant restructuring of our
internal audit function, with the arrival of a new head and the
definition of a multi-year roadmap to strengthen our internal
practices and operational risk management by adopting
standardized tools and methodologies.
We continued to measure our impact, with Amret and
Advans Nigeria participating in the MFI Index study by 60
decibels. 88% of clients in these two countries reported
increased incomes through our services. Similarly, our
initiatives to reach more underserved populations, notably
through products tailored to women and the agricultural
sector, reinforced our commitment to social responsibility
and sustainability.
Finally, we maintained our commitment to providing
responsible and quality services while progressing in the
deployment of our Climate strategy. With the support of
our partners, we conducted in-depth studies on the impact
of climate change on our clients in Côte d’Ivoire and Tunisia
in 2023. This followed the methodology defined in Ghana in
2022. We also initiated employee awareness activities, with
60% of our employees in Ghana participating in the Climate
Fresk workshop. We also began client awareness actions
on climate risks. Our three pilot institutions also conducted
a first assessment of their carbon emissions to identify
reduction pathways.
In 2024, we aim for stronger growth in Africa and will
continue to improve our fundamentals: client acquisition,
productivity enhancement, and deposit growth. We will
be aided in this by the further deployment of Air+, with 2
additional subsidiaries: Côte d’Ivoire and Cameroon. Air+ has
already demonstrated its initial positive impacts in Tunisia
and Ghana, and we will amplify this momentum for 2024!
We will continue to strengthen our impact, aiming for
Client Protection Pathway certification in 3 subsidiaries
and finalizing our model of best practices in Transparency.
Regarding climate, our priority will be to work on better
integration of risks into our processes and products.
Finally, if 2023 ended on a positive trajectory, it is thanks to
the efforts and commitment of all group employees, as well
as the support of our partners and shareholders. Thank you!
Whatever the obstacles, we adapt, learn, and find a solution.
All of our African subsidiaries were profitable
in 2023, with particularly outstanding
performances in Tunisia and Côte d’Ivoire, and
Advans Congo returning to profitability after
completing its transformation from a bank to a
microfinance institution.
Eelko Bronkhorst
MESSAGE FROM THE CHAIRMAN AND CEO | Advans’ Annual Report 2023
In 2023, we continued to operate in a global
economic context marked by moderate growth
(3%) and inflation, which, although decreasing,
remained at a historically high level (6.9%). This
decrease is driven by AMRET, which focused on
containing PAR and slowing down disbursement
in response to challenging conditions in the
microfinance sector in Cambodia.
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