REG - Bank of Africa - Annual Financial Report

Bank of Africa SAAnnouncement

28/03/2022 10:00

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RNS Number : 2181G  Bank of Africa  28 March 2022

ir-bankofafrica.ma

 

BANK OF AFRICA

BMCE GROUP

 

ANNUAL RESULTS

31 DECEMBER 2021

 

 

2021, A REMARKABLE YEAR FOR BANK OF AFRICA

 

BANK OF AFRICA - BMCE Group's Board of Directors, chaired by Mr Othman
BENJELLOUN, met Friday 25 March 2022 at the Bank's head office in Casablanca.
It reviewed the business activity of the Bank and of the Group for the
financial year ended 31 December 2021 and drew up the financial statements for
the period in question.

 

The Board of Directors will propose that the forthcoming Annual General
Meeting of Shareholders reappoint the following Directors for a further term,
(i) the Caisse de Dépôt et de Gestion, represented by Mr Abdellatif
Zaghnoun, its Chief Executive Officer, and Mr Brahim Benjelloun-Touimi, BANK
OF AFRICA Group's Director and Delegate General Manager.

 

The Annual General Meeting will also be asked to take note that two
independent Directors, Messrs François Henrot and Brian Henderson, will not
be reappointed for a further term. This is because, with their 6-year term
expiring, they no longer satisfy the independence criterion defined in the
last paragraph of Bank Al-Maghrib's Circular 5/W/16 of 10 June 2016, which
sets out the terms and conditions for appointing independent directors and
members to credit institutions' administrative bodies.

 

The Chairman of the Board and all other Directors paid a heartfelt and glowing
tribute to both Independent Directors for the high-quality and pertinent
contributions made to the work of the Board and of the specialised Committees.

 

In addition, the Board of Directors will ask the forthcoming Annual General
Meeting to authorise a bond issuance programme consisting of (i) a
subordinated bond issue amounting to MAD 1 billion overall, to be carried out,
in one or more tranches, via a domestic public offering, intended to help
finance the Group's development, and (ii) a 'social bond' issue, the first of
its kind in Morocco, amounting to MAD 500 million overall.

 

The Board of Directors will ask the Annual General Meeting of Shareholders to
approve a 4 dirhams per share dividend distribution.

 

Similarly, it will also ask the Extraordinary General Meeting for an operation
of a capital increase by incorporating reserves leading to the allocation of
bonus shares for a maximum amount of 620 MMAD, as well as the harmonization of
the articles of association with the terms of Law 19-20 amending and
completing the Law 17-95 related to limited companies.

 

 

The brochure containing the 2021 financial statements, prepared under
IAS/IFRS, and the notes to the financial statements, is published on the
www.ir-bankofafrica.ma (http://www.ir-bankofafrica.ma) website.

 

 

CONSOLIDATED BUSINESS ACTIVITY

(MAD MILLIONS)

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
COMPANY

December 2020 (Excluding donation): 1 368 (+47%)

December 2020 (Including donation): 738 (+172%)

December 2021: 2 007

 

Net income attributable to shareholders of the parent company rose by +172%
year-on-year to MAD 2 billion and by +47% when restated for the impact from
the COVID-19 donation.

 

NET BANKING INCOME

December 2020: 14 002

December 2021: 14 607 (+4%)

 

Consolidated net banking income grew by +4% year-on-year to MAD 14.6 billion,
driven by the core business.

 

 

PARENT BUSINESS ACTIVITY

(MAD MILLIONS)

 

NET INCOME

December 2020 (Excluding donation): 1 354 (+11%)

December 2020 (Including donation): 724 (+107%)

December 2021: 1 501

 

Net income at BANK OF AFRICA S.A. rose by +107% year-on-year to MAD 1.5
billion, a record level for the Bank and by +11% when restated for the impact
from the COVID-19 donation.

 

NET BANKING INCOME

December 2020: 6 301

December 2021: 6 907 (+10%)

 

Net banking income of the Bank in Morocco grew by +10% to MAD 6.9 billion
versus MAD 6.3 billion in 2020.

 

 

 

 

 

 

FULL-YEAR FINANCIAL RESULTS SHARPLY HIGHER WITH PROFITS AT BANK OF AFRICA S.A.
AT RECORD LEVELS

 

Strong earnings growth with net income attributable to shareholders of the
parent company (excluding donation) up 47% at MAD 2 billion, and parent net
income 11% ahead at MAD 1.5 billion, a record level for BANK OF AFRICA S.A.

 

Performance back to pre-COVID-19 levels with net income attributable to
shareholders of the parent company up 4% and parent net income 9% ahead versus
2019.

 

Moroccan business contributing 51% to net income attributable to shareholders
of the parent company and international operations 49%, including 41% from
Africa.

 

Strong commercial performance with parent net banking income up 10% and +4.3%
on a consolidated basis to MAD 6.9 billion and MAD 14.6 billion respectively
at 31 December 2021.

 

All business lines driving revenue growth, including the core business with
net interest income up 5% on a consolidated basis and +6% at the parent level
with fee income 6% higher on a consolidated basis and 7% ahead at the parent
level.

 

Revenues well-diversified geographically with international operations
continuing to contribute 50% to overall Group revenues at 31 December 2021;
Africa now accounts for 46% of BANK OF AFRICA's consolidated net banking
income.

 

Ongoing operational efficiency gains at the Group and Bank levels in 2021, as
illustrated by the downward trend in the consolidated cost-to-income ratio in
each of the past 4 financial years, from 59.1% in 2018 to 54.5% in 2021, an
improvement of 4.6 percentage points and in the parent cost-to-income ratio,
from 59.7% in 2018 to 52.8% in 2021, an improvement of almost 7 percentage
points.

 

Improvement in the cost of risk (-15%) versus 2020 to MAD 2.9 billion,
resulting in a cost-of-risk ratio of 1.5% in 2021 versus 1.8% in 2020.

 

Total assets up 4% to MAD 345 billion on a consolidated basis and 5.5% ahead
to MAD 227 billion on a parent basis at 31 December 2021.

 

Strong momentum in the Group's commercial activity with customer loans
(excluding resales) at Group level up 4% to MAD 182 billion and +5% to MAD 122
billion at BANK OF AFRICA S.A.

 

Customer deposits (excluding repurchases) up 6% to MAD 219 billion on a
consolidated basis and +5% to MAD 141 billion at the parent level.

 

25 basis points gain in the Bank's share of the loan and deposit market to
12.73% and 13.24% respectively at 31 December 2021.

 

Impressive performance by BOA Holding, the Group's African subsidiary and
second largest contributor to Group revenues and profits, with consolidated
net banking income up 5% to EUR 604 million and net income attributable to
shareholders of the parent company growing by 60% to EUR 105 million.

 

Positive commercial and financial performance at Salafin with overall
production growing by 15.4% versus 31 December 2020 and net banking income
6.1% higher to MAD 389.1 million at 31 December 2021.

 

64.6% increase to MAD 3.4 billion, exclusive of taxes, in Maghrebail's
production at 31 December 2021 with net income sharply higher (+54.2%
year-on-year) at MAD 99.1 million.

 

Positive trend in BANK Of AFRICA Europe's main financial indicators with
transaction volume from the trade finance business, domiciled within the
Madrid-based subsidiary, 23% higher and net income up by 6% to almost EUR 11
million at 31 December 2021.

 

Decent performance by BANK OF AFRICA United Kingdom with net banking income up
26.6% to GBP 23.7 million and net income of GBP 5.2 million at 31 December
2021, a twofold rise compared to the level seen in 2019, with all business
units contributing.

 

Significant growth by BANK OF AFRICA Shanghai Branch with strong commercial
momentum because of the Group's Chinese branch office's participation in
several commercial and promotional events.

 

 

DIGITAL SERVICES BOLSTERED, PROVIDING AN IMPROVED CUSTOMER EXPERIENCE

 

BMCE Direct and Agence Directe's services enhanced with new functionality,
providing a simpler, more user-friendly, comprehensive, and secure customer
experience, consistent with the Bank's ongoing digitisation strategy.

 

Crédit DABA, the new online loan application platform enhanced with an
entirely digital subscription process.

 

Crédit Business Online platform for businesses, including small businesses,
enhanced with a website that can be accessed and adapted to any device.

 

DABA Transfer, BMCE EuroServices' digital platform developed, the first mobile
app in Morocco enabling customers to make online money transfers from Europe -
from three countries and in three languages - French, Italian and Spanish.

 

 

BOOSTING FINANCING AND SUPPORT TO HELP DEVELOP THE NATION'S ENTREPRENEURIAL
ECOSYSTEM

 

Strongly committed to supporting entrepreneurship as seen in the Bank's
support for nearly 14,000 youngsters and would-be entrepreneurs in 2021:
entrepreneurship awareness sessions organised for 13,000 youngsters and
would-be entrepreneurs, training provided to 900 small businesses and around
50 start-ups incubated.

 

Effective partnerships formed with some of the Kingdom's main public
institutions, including nearly a dozen of Regional Investment Centres, INDH
platforms, local authorities and ANAPEC.

 

More than 13,600 DAMANE OXYGENE and DAMANE RELANCE applications processed
since 2020, with a total of MAD 8 billion disbursed in the year ended 31
December 2021.

 

Ongoing support for the INTELAKA programme with more than 3,700 applications
approved and with a total of MAD 628 million disbursed in the year ended 31
December 2021.

 

A variety of products launched for small and medium-sized enterprises,
including the Istitmar programme, the Tatwir Croissance Verte programme, the
Cap Bleu 2021 loan, Green Value Chain by BANK OF AFRICA, a new solution, and
the latest version of the Cap Energie solution.

 

 

LEADERSHIP BOLSTERED IN CORPORATE SOCIAL RESPONSIBILITY, ENVIRONMENTAL
RESPONSIBILITY AND POSITIVE IMPACT FINANCE

 

Ongoing development of BMCE Bank Foundation's Medersat.Com network with two
state schools opened in Temara and one in Djibouti, 24 pre-school classrooms
built, 8 schools renovated and refurbished, a Middle Section introduced in 48
schools, and 36 schools labelled 'Eco-Schools' under an agreement with the
Mohammed VI Foundation for Environmental Protection.

 

MEDERSAT.COM ACADEMY distance learning centre inaugurated to provide ongoing
teacher training in a variety of disciplines - languages, preschool education
and new information and communication technologies.

 

BMCE Bank Foundation signs amendments to the special agreements to establish
100 preschool classes in three of the Kingdom's regions, thereby underlining
its commitment to develop preschool education.

 

Sustainable financing bolstered with EUR 113 million of funding lines signed
with the EBRD for energy efficiency and renewable energy projects - Green
Economy financing facility, Cap Bleu, Green Value Chain, GCf GEff, Women in
Business, Risk facility Sharing, and cooperation with a global textiles group
to promote sustainable value chains.

 

Range of inclusive insurance products developed for different
socio-professional categories, including Taamine Al Aazae, Taamine Al Abnae,
Taamine Al Walidaine and Taamine Al ilaj, with simplified subscription terms
and conditions, limited exemptions, and rapid pay-outs without binding
clauses.

 

BANK OF AFRICA, first Moroccan Bank to endorse Women's Empowerment Principles,
a partnership initiative of the United Nations Global Compact and UN Women, as
a universal multi-business banking group comprising a variety of business
lines.

 

Gender Diversity Corporate Charter signed to mark International Women's Day,
developed by We4She within the framework of the Africa CEO Forum, underlining
the Bank's commitment to join the African network for diversity.

 

Guide to best sustainable practices published in partnership with the Green
for Growth Fund (GGF) and Apexagri for companies within the agri-food
industry.

 

 

PROFILE

 

14 900 EMPLOYEES

32        COUNTRIES

2 000   POINTS OF SALE

6.6       MILLION CUSTOMERS

 

BANK OF AFRICA is one of Africa's main pan-African financial groups. With an
extensive portfolio of brands and subsidiaries, BANK OF AFRICA has adopted a
universal banking business model comprising a variety of business lines,
including commercial banking, investment banking as well as specialised
financial services such as leasing, factoring, consumer credit and
participatory banking.

 

The corporate names of the Madrid and London subsidiaries have recently
changed to BANK OF AFRICA EUROPE and BANK OF AFRICA UNITED KINGDOM
respectively.

 

 

AWARDS AND DISTINCTIONS

 

BANK OF AFRICA named 'Best Bank in Morocco 2021' for the 9(th) time since 2000
by The Banker, a prestigious Financial Times Group publication.

 

BANK OF AFRICA named 'Best Trade Finance Bank in Morocco' by Global Trade
Review as part of its 'GTR+MENA2021' annual review.

 

BANK OF AFRICA, first bank to be ISO 45001-certified in Morocco and on the
African continent in the areas of occupational health, safety, and well-being,
after a certification audit was carried out by Bureau Veritas Certification.

 

BANK OF AFRICA named 'Third Safest Bank in Africa in 2021' by Global Finance
Magazine and ranked among the top three banks on the African continent.

 

BANK OF AFRICA named 'Top Performer CSR 2021' in a Moody's non-financial
ratings survey and ranked 1(st) out of 90 banks in emerging markets, 2(nd) out
of 852 emerging market companies (across all sectors) and 37(th) out of 4,963
companies rated worldwide.

 

BANK OF AFRICA an award-winner in the MENA region's Financial Services
category for the 8(th) consecutive year at the 14(th) Arabia CSR Awards, for
its leadership in corporate social responsibility and sustainability as well
as for the high level of resilience shown in the face of the COVID-19 crisis.

 

BANK OF AFRICA wins the 'Outstanding Leadership in Sustainable Project Finance
- Africa' award from Global Finance Magazine in the context of its Sustainable
finance Awards 2021.

 

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
COMPANY

AT 31 DECEMBER 2021 BY GEOGRAPHICAL REGION

 

2021

MOROCCO • 51%

SUB-SAHARAN AFRICA • 41%

EUROPE • 8%

 

2020

MOROCCO • 46%

SUB-SAHARAN AFRICA • 44%

EUROPE • 10%

 

 

RATINGS

 

MOODY'S

BA1,

NEGATIVE OUTLOOK

 

FITCH RATINGS

BB,

STABLE OUTLOOK

 

VIGEO.EIRIS

Non-financial rating

A+

 

 

 

FINANCIAL COMMUNICATION Website: ir-bankofafrica.ma - Tel: +212 522 462 810

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