The effects of the war in eastern Democratic Republic of Congo are now reflected in the financial statements of institutions operating in the region. Pillar III reports for the first half of 2025 published by SMICO and FINCA RDC show a sharp reversal in profitability, with both moving from profit to loss.

At SMICO, net income fell from 6.01 billion Congolese francs (CDF) in 2024 to negative 1.29 billion CDF at the end of June 2025. This represents a decline of approximately 121 percent. Net financial income decreased from 29.12 billion to 12.47 billion CDF, a drop of 57 percent.

This contraction comes amid a deteriorating security situation. Since the seizure of Goma in late January 2025 and Bukavu in mid-February 2025 by AFC/M23 rebels, economic activity has been heavily disrupted in these areas. SMICO indicates that two branches have remained closed since these events and that the Uvira branch is partially operational. The institution operates a total of ten branches across eight provinces.

Portfolio quality has deteriorated significantly. The 30-day portfolio-at-risk (PAR 30) reached 13.65 percent, compared with 3.69 percent at the end of 2024. Gross loans under litigation amount to 16.35 billion CDF. Meanwhile, customer deposits, including savings and demand deposits, fell from 110.49 billion to 86.00 billion CDF, a drop of 22 percent.

The report also states that SMICO drew on a new financing line to support its operations. Regulatory capital increased between March and June 2025 due to partner support, allowing the institution to partially absorb the shock.

At FINCA RDC, the trend is similar. Net income declined from 15.99 billion CDF in 2024 to negative 139 million CDF at the end of June 2025, a decrease of approximately 101 percent. Net financial income fell from 116.26 billion to 56.42 billion CDF.

FINCA, which operates 23 branches and more than 1,700 banking agents, says it has closed its Goma and Bukavu branches for security reasons while transferring its liquidity to partner banks. Unlike SMICO, customer deposits remain relatively stable at 214.68 billion CDF, compared with 215.39 billion CDF in 2024.

Signs of resilience

However, portfolio quality has deteriorated sharply. The volume of loans classified as 30-day portfolio-at-risk increased from 13.20 billion to 37.06 billion CDF. This led to higher provisioning and increased pressure on profitability.

It should be noted that the comparison places full-year 2024 figures alongside half-year data as of June 2025, which mechanically amplifies the percentage change. Nevertheless, the shift into loss reflects a genuine shock, particularly through rising credit risk and operational disruptions.

Beyond these two institutions, the security situation has led to the suspension of financial activities in areas under AFC/M23 control, where banking and microfinance operations are prohibited. This interruption disrupts regional liquidity flows and increases credit risk for exposed institutions.

Despite this environment, signs of resilience are emerging. SMICO says it is redirecting its commercial operations toward more stable cities, including Kindu, Bunia, Kisangani, Lubumbashi, Likasi and Kolwezi. The institution is also accelerating its digital strategy. On Sept. 27, 2025, it launched the SMICO Money service in Lubumbashi, accessible via USSD code and enabling transactions without an internet connection.

FINCA, meanwhile, is continuing to expand its digital services and is relying on its national network to maintain access to financial services outside the affected areas.

Timothée Manoke