Half-year results: a boost for Moroccan banks

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The sector has indeed published results up sharply, almost forgetting the health crisis that had plagued its accounts just a year ago.

This good news can be explained both by a marked drop in the cost of risk and by revenues which are progressing in all business lines. Over these first six months of the year, the entire sector generated 6.12 billion DH in profits, with large variations mainly driven by a base effect (the non-recurrence of Covid donations), but also by a vigorous recovery in activity.

The first bank by capitalization, Attijariwafa bank, posted an operating result up 30.1% to stand at 5 billion DH, thanks to a confirmed discipline in terms of cost control (-16 , 5% or + 0.9% excluding contribution to the Covid-19 fund in the first half of 2020) and the gradual normalization of the cost of risk (-37%).

Result: the RNPG stood at 2.6 billion DH against 1.2 billion DH in the first half of 2020 (2.9 billion DH in H1-2019), up 35.8%, corrected for the contribution to Covid19 fund. Same story at BCP, whose RNPG increased by 52.5% to stand at DH 1.54 billion. Reflecting improving macroeconomic conditions, the cost of risk fell 27.1% to DH 2.2 billion. A level that takes into account the Group’s prudent provisioning policy and the uncertainties that continue to hang over the health situation both in Morocco and in sub-Saharan Africa.

The strongest increases in profits are marked by Crédit du Maroc and CIH Bank, whose results went from 24 to 278 million dirhams and from 45.7 to 264.65 million dirhams respectively. BMCI’s consolidated net income stood at MAD 246 million at the end of June 2021, up 340.9% compared to the end of June 2020. However, it should be noted that the overall profitability level achieved during this semester is slightly lower to that of the first half of 2019 (MAD 6.47 billion). But in other words, the banks have done very well over the past six months.

Commercial dynamics boost the sector’s GNP

The aggregate net banking income (NBI) of the 6 listed banks for the first quarter came to MAD 34.21 billion. The economic recovery was in fact reflected in the structure of the GNP of the three big names in the sector. Thus, the consolidated NBI of the AWB Group amounted to 12.5 billion DH, an improvement of 0.7% compared to the first half of 2020, benefiting from a positive commercial dynamic in terms of collection of savings and financing of the economy, in a context of gradual recovery of economic activity in the various countries of presence. Thus, savings collected and consolidated loans stood at DH 532.9 billion (+ 8.7%) and DH 342.0 billion (+ 3.6%) respectively.

As for the BCP, this item appreciated by 1.5% to 10.2 billion DH, mainly benefiting from the favorable evolution of the interest margin (+ 2.7%), given the The combined effect of the recovery of gross loans (+4.7 billion DH) and the dynamics of deposit collection (+10.6 billion DH) Bank of Africa, for its part, announced a 4% increase in Consolidated NBI at 7.3 billion DH at the end of June 2021. Consolidated loans increased by 2.3% to 179 billion DH. Opposite, consolidated customer deposits increased by 3% to MAD 213 billion. CIH Bank posted the strongest revenue growth.

Its consolidated NBI amounted to DH 1.5 billion, an increase of 7% compared to June 2020. This change results mainly from the increase in the net interest margin of 23.1%, under the effect of growth in business activity.

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