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REG - Banque Marocaine - Notice of Results




 



RNS Number : 0210I
Banque Marocaine Du Commerce Exteri
30 March 2020
 

BANK OF AFRICA

BMCE GROUP

 

ANNUAL RESULTS

31 DECEMBER 2019

 

GROUP'S FINANCIAL BASE BOLSTERED AT END-2019

 

Bank of Africa - BMCE Group's Board of Directors, chaired by Mr Othman BENJELLOUN, met on Friday 27 March 2020 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 2019 and drew up the financial statements for the financial year in question.

 

The Board acknowledged and welcomed Chairman Othman BENJELLOUN's announcement that Bank of Africa would be contributing MAD 1 billion to the Coronavirus pandemic management fund set up by His Majesty King Mohammed VI for the purpose of safeguarding the welfare of Moroccan citizens and supporting the domestic economy, goals that were entirely consistent with the values of solidarity and citizenship espoused by the Group.

 

At the Annual General Meeting of Shareholders, the Board of Directors will propose a dividend distribution of 5 dirhams per share, amounting to just under MAD 1 billion (MAD 999.1 million), with shareholders being given the option of converting the dividend into shares.

 

At an Extraordinary General Meeting of Shareholders, the Board of Directors will propose a capital increase to which all of the Bank's existing shareholders may subscribe, with shareholders being given the option of converting their dividends in respect of financial year 2019 into shares.

 

The 2019 financial statements, prepared under IAS/IFRS, and the notes to the financial statements are available on the website www.ir-bankofafrica.ma.

 

 

BOLSTERING OF THE CAPITAL BASE THE MAIN HIGHLIGHT OF THE YEAR

 

CONSOLIDATED FINANCIAL STATEMENTS

 

·     22% increase in Bank of Africa's shareholders' equity attributable to shareholders of the parent company to MAD 22.5 billion at 31 December 2019 versus MAD 18.4 billion in 2018.

 

·     MAD 3.6 billion raised via a capital increase, in two tranches, by (i) converting dividends in respect of financial year 2018 into shares, amounting to MAD 0.7 billion and (ii) a MAD 1 billion public offering as well as a MAD 1.9 billion capital increase reserved exclusively for new shareholder CDC Group Plc.

 

·     5% growth in net income attributable to shareholders of the parent company to MAD 1.9 billion with Moroccan operations contributing 60% and the international business 40%, comprising Africa (33%) and Europe (7%).

 

·     Consolidated net banking income up 5% to MAD 13.9 billion, primarily due to growth in income from market operations and fee income.

 

·     Strong commercial performance with consolidated customer loans up 4% and customer deposits growing by 5.4%.

 

·     Improvement in the Group's operational efficiency, with the rise in general operating expenses contained at +3%, resulting in a consolidated cost-to-income ratio of 58.2% versus 59.1% in 2018.

 

PARENT FINANCIAL STATEMENTS

 

·     2% growth in the Banking in Morocco business' net income to MAD 1.4 billion.

 

·     Parent net banking income up 7.6% thanks to a healthy performance by market operations and 6.7% growth in fee income.

 

·     6% increase in customer loans.

 

·     4.6% growth in the parent company's customer deposits, resulting in a 22-basis points improvement in market share to 13.62% at 31 December 2019 versus 13.40% at 31 December 2018.

 

·     Significant improvement in the parent cost-to-income ratio to 56.3% versus 59.7% in 2018, primarily due to a modest 1.4% rise in general operating expenses.

 

 

 

 

CONSOLIDATED BUSINESS ACTIVITY

(MAD MILLIONS)

 

NET BANKING INCOME

+5%

Dec 2018              Dec 2019

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY                                     

+5%

 

LOANS

+4%

 

DEPOSITS

+5%

 

 

PARENT BUSINESS ACTIVITY

(MAD MILLIONS)

 

NET BANKING INCOME

+7.6%

Dec 2018              Dec 2019

 

NET INCOME                            

+2%

 

LOANS

+6.3%

 

DEPOSITS

+4.4%

 

 

 

 

 

 

CORPORATE NAME CHANGED TO BANK OF AFRICA, UNDERLINING A COMMITMENT TO BEING A PAN-AFRICAN BANK

 

Change in corporate name to BANK OF AFRICA, abbreviated to 'BOA', approved by shareholders at an Extraordinary General Meeting 5 March 2020, further underlining a commitment to developing the Bank and the Group's pan-African profile.

 

 

DIGITAL TRANSFORMATION ONGOING

 

Accelerating implementation of the digitalisation strategy to provide effective support to customers as they adopt new methods of accessing banking services by:

 

(i)           Entirely revamping the BMCE Direct Web online banking platform - flexible loans, bank transfers, re-vitalising the Dabapay facility;

(ii)          Introducing an online home loan platform;

(iii)         Launching the BMCE Business Online Global Banking portal for corporate customers - cash management and trade finance.

 

 

PROMOTING FINANCIAL INCLUSION BY PROVIDING SUPPORT AND FINANCE FOR ENTREPRENEURS AND SMALL BUSINESSES

 

CAP TPE 2020 launched, consistent with the strategic guidance provided by His Majesty, for the purpose of providing a package of financial and non-financial measures in support of the self-employed, entrepreneurs and small businesses.

 

A strong commitment for the past 10 years to providing non-financial support by:

 

(i)         Promoting access to financing by creating and heading up a leading ecosystem comprising 30 partners and the Blue Space incubator network;

(ii)          Supporting small businesses through the Entrepreneurship Observatory, regional conference series, the SME Club, the Entrepreneurship Club and the Women in Business credit line;

(iii)         Supporting the general public by educating college and high school students, employed persons and households in financial matters.

 

 

A BANK WHICH CONTINUES TO STAND OUT

 

BANK OF AFRICA wins the 'Best Customer Service Award 2020' for the third consecutive year in the Banking category

 

BANK OF AFRICA named 'Top Employer' for the third consecutive year by the Top Employers Institute. EAI, the Group's technology subsidiary, also named as a Top Employer alongside 1,500 similarly recognised organisations in more than 118 countries from around the world.

 

Mr Othman Benjelloun, founder of BMCE Bank Foundation and Dr Leila Mezian Benjelloun, Foundation chair, awarded the Visionary Award from the Middle East Institute (MEI), a US-based centre of learning.

 

Dr Leïla Mezian-Benjelloun, Chairman of BMCE Bank Foundation, awarded the Officer medal of France's Légion d'honneur, in recognition of her commitment to promoting culture and education.

 

BANK OF AFRICA, Africa's leading supporter of the Future of Sustainable Data Alliance.

 

BANK OF AFRICA, one of the founding signatories of the United Nations' Principles for Responsible Banking (PRB), at the United Nations General Assembly and the UN Climate Action Summit in New York. The PRBs herald a new alliance between the UN and the global banking sector.

 

BANK OF AFRICA signs up to the Chinese Belt & Road initiative's 'Green Investment Principles' (GIP), becoming the first Moroccan and African bank to support the GIPs.

 

Partnership with the World Environment Center to promote resource efficiency within the corporate sector.

 

 

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

 

AT 31 DECEMBER 2019

BY GEOGRAPHICAL REGION

 

Morocco              60%

Africa                    33%

Europe                 7%

 

 

 

FINANCIAL COMMUNICATION Website: ir-bankofafrica.ma - Tel: +212 522 462 806

 

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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