This week’s stock pick is Bank of Africa Sénégal, a key player in West Africa’s financial sector. The Dakar-based bank, listed on the Bourse Régionale des Valeurs Mobilières (BRVM), combines a strong local presence with attractive financial metrics, making it a defensive yet promising choice in an evolving regional market.
- Ticker / Market: BOAS on BRVM (Bourse Régionale des Valeurs Mobilières)
- Latest closing price: XOF 4,710 per share (29 August 2025)
- Dividend yield: ~8.3% (389 XOF per share)
- Price-to-earnings ratio (P/E): ~8.3
- Market capitalisation: ~XOF 170 billion
- Listing: BRVM, the regional exchange for WAEMU countries, headquartered in Abidjan
Strong fundamentals
Bank of Africa Sénégal operates as part of the larger Bank of Africa Group, providing retail, corporate and SME banking services across the country. The bank has steadily grown its customer base while maintaining a robust balance sheet. Investors are particularly attracted to its dividend yield of around 8.3%, which is significantly higher than many emerging market peers.
Attractive valuation
Trading at a price-to-earnings ratio of just above 8, the stock appears relatively undervalued compared with global banking averages. This low multiple suggests the bank may offer upside potential while providing a measure of downside protection through steady cash generation.
Regional growth outlook
Senegal’s economy has shown resilience in recent years, supported by infrastructure projects and growing regional trade. As financial inclusion increases, Bank of Africa Sénégal is positioned to capture the rising demand for retail banking, mobile banking, and SME financing. Its role within the broader West African Economic and Monetary Union (WAEMU) framework also strengthens its regional relevance.
Risks to consider
Investors should weigh risks carefully. Currency stability within the WAEMU zone is linked to the euro peg, which may limit monetary flexibility. Political shifts in the region, exposure to sovereign debt, and limited market liquidity on the BRVM are additional considerations.
Outlook
With a strong yield, attractive valuation, and solid local positioning, Bank of Africa Sénégal offers investors exposure to a fast-developing financial market in West Africa. For those seeking diversification beyond traditional emerging markets, the stock presents a compelling case as this week’s highlight.
Disclosure: This article is for informational purposes only and does not constitute investment advice. The author and Newshub Finance do not hold a position in Bank of Africa Sénégal at the time of publication. Investors should conduct their own research or consult a licensed financial adviser before making investment decisions.
REFH – Newshub, 1 September 2025
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