We deliver here the ranking of the best managed commercial banks in Côte d’Ivoire. This ranking is based on the operating ratio.

Naturally, the first question that comes to the mind of the reader is to know first of all the nature of the criterion or even the criteria chosen to carry out this classification and secondly the methodology for estimating or calculating the criterion or criteria selected.

For our classification, we have opted for a single objective financial criterion called Cost Income Ratio, the calculation formula of which is (for purists): (General Expenses + Allowances for amortization and depreciation of intangible and tangible fixed assets)*100/ Net Product Banking.

What is the simplest meaning of the Cost-to-income ratio of a Commercial Bank for the layman?

This coefficient is an indicator for measuring the quality of the management of a commercial bank because it simply highlights the share of the turnover devoted to general expenses (salaries, electricity, water, transport, supplies of offices, etc).

Allocations to depreciation and provisions for depreciation of operating fixed assets relate to normal wear and tear and not proven risks. It is in this sense that accounting relates them to general expenses.

How to interpret the Cost-Effectiveness Coefficient?

The lower it is, the better is the Management of the Commercial Bank because it manages to cover its overhead costs with a relatively small share of its turnover.

As a general rule, when this coefficient is less than 65%, it means that the bank is well managed. Therefore, commercial banks can be subdivided into 3 groups in terms of managing their operations.

Group 1: The best students in the class with an operating coefficient of less than 65%

Group 2: Average students Bicici, Versus Bank, Orabank and Union Bank

Group 3: The others who must make great efforts to return to a more orthodox management.

What about the methodology for calculating the operating ratio of commercial banks in the ranking?

We took the data published by the Bceao (Central Bank of West African States) dated July 25, 2019 on its website www.bceao.int. Then we applied the Coefficient of Exploitation formula explained above.

1^st: CITIBANK / 37%

2^nd: CORIS BANK / 40%

3^rd: SIB / 46%

4^th: SOCIETE GENERALE / 50%

4^th: BACI / 50%

6^th: ECOBANK / 54%

7^th: BGFI BANK / 56%

8^th: BOA / 58%

9^th: BRIDGE BANK GROUP / 59%

10^th: NSIA BANK / 63%

11^th: UBA / 64%

12^th: BICICI / 66%

12^th: VERSUS BANK / 66%

14^th: ORABANK / 67%

15^th: UNION BANK -BDU / 69%

Source: Free Observatory of Banks of Ivory Coast. May 2020