REG - Bank of Africa - Annual Financial Report

Bank of Africa SAAnnouncement

27/03/2023 11:15

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RNS Number : 3286U  Bank of Africa  27 March 2023

ir-bankofafrica.ma

 

BANK OF AFRICA

BMCE GROUP

 

ANNUAL RESULTS

31 DECEMBER 2022

 

 

POSITIVE GROWTH IN OPERATING INDICATORS DESPITE A CHALLENGING ENVIRONMENT

 

BANK OF AFRICA - BMCE Group's Board of Directors, chaired by Mr Othman
BENJELLOUN, met Friday 24 March 2023 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 2022 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 Mr Azeddine Guessous as an intuitu personae
Director, in addition to his appointment as Royale Marocaine d'Assurance's
Permanent Representative.

 

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

 

It will also ask an Extraordinary General Meeting of Shareholders to approve a
capital increase of up to MAD 630 million by incorporating reserves and
issuing bonus shares.

 

The brochure containing the 2022 financial statements, prepared under
IAS/IFRS, and the notes to the financial statements, are 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

 

+15%

December 2021

December 2022

 

Net income attributable to shareholders of the parent company rose +15%
year-on-year to MAD 2,305 million at 31 December 2022.

 

 

NET BANKING INCOME

 

+7%

December 2021

December 2022

 

Consolidated net banking income increased by +7% to MAD 15.6 billion.

 

CUSTOMER LOANS

 

+7.4%

December 2021

December 2022

 

Consolidated loans, excluding resales, grew by +7.4% from MAD 182 billion to
MAD 196 billion at 31 December 2022.

 

CUSTOMER DEPOSITS

 

+12.3%

December 2021

December 2022

 

Customer deposits grew by +12.3% year-on-year to MAD 246 billion at 31
December 2022 versus MAD 219 billion at 31 December 2021.

 

 

PARENT BUSINESS ACTIVITY (MAD MILLIONS)

 

NET INCOME

 

+2%

December 2021

December 2022

 

BANK OF AFRICA S.A.'s net income rose by +2% year-on-year to MAD 1,525 million
at 31 December 2022 versus MAD 1,501 million at 31 December 2021.

 

NET BANKING INCOME

 

Unchanged (*)

December 2021

December 2022

 

The Bank's net banking income, restated for special dividends from European
subsidiaries in 2021, was broadly unchanged from the previous year at MAD
6,630 million in 2022.

 

CUSTOMER LOANS

 

+4%

December 2021

December 2022

 

Customer loans grew by +4% to MAD 127 billion at 31 December 2022 versus MAD
122 billion in 2021.

 

CUSTOMER DEPOSITS

 

+6.6%

December 2021

December 2022

 

Customer deposits grew by +6.6% to MAD 148 billion at 31 December 2022 versus
MAD 139 billion at 31 December 2021.

 

(*) 2021 net banking income restated for exceptional items

 

 

FINANCIAL INDICATORS - POSITIVE GROWTH

 

Consolidated net banking income rose by +7% to MAD 15.6 billion at 31 December
2022, driven by growth of the core business - fee income +18% and net interest
income +9% - despite a drop in income from market operations.

 

Net income attributable to shareholders of the parent company grew by 15% to
MAD 2.3 billion.

 

Parent company net banking income was broadly unchanged, after restating
exceptional items booked in 2021, at MAD 6.6 billion, driven by the Bank's
core business lines with fee income +11% and net interest income +4%,
offsetting the drop in income from market operations.

 

Parent net income increased by +2% to MAD 1.5 billion.

 

The Group's cost base remained firmly under control in 2022 with the increase
in the parent company's operating costs contained at +1% at MAD 3.7 billion
and +4% at MAD 8.3 billion on a consolidated basis.

 

Strong business performance with consolidated customer loans, excluding
resales, up +7.4% to MAD 196 billion at 31 December 2022. In Morocco, customer
loans grew by +4%, resulting in a 12.35% share of the loan market at 31
December 2022.

 

Consolidated customer deposits, excluding repurchases, grew by +10% to MAD 241
billion at 31 December 2022 versus MAD 219 billion at 31 December 2021.

 

BANK OF AFRICA S.A.'s customer deposits rose by +6.6% to MAD 148 billion,
resulting in a 13.31% share of the market at 31 December 2022.

 

Consolidated cost of risk fell by -10% to MAD 2.6 billion at 31 December 2022,
resulting in a cost-of-risk ratio on customer loans of 1.1% despite a +7%
increase in the cost of risk in Morocco to MAD 1.2 billion.

 

BANK OF AFRICA's shareholders' equity was bolstered to the tune of +6% in 2022
after issuing a MAD 1 billion subordinated note and a MAD 500 million
perpetual subordinated note containing a loss-absorption and
coupon-cancellation provision.

 

ROBUST ECONOMIC SUPPORT INITIATIVES

 

Ongoing support by BANK OF AFRICA for the INTELAKA programme with almost 3,000
applications approved and more than MAD 700 million disbursed as of 31
December 2022, up +11.3%, with the programme benefiting from the introduction
of an online application facility via a dedicated website and mobile app.

 

Strategic partnerships signed between BANK OF AFRICA and SANAD for a EUR 25
million finance line and between BANK OF AFRICA and the International Finance
Corporation (IFC) for a USD 154 million loan facility to support small and
medium-sized enterprises.

 

More than 12,000 young people made aware about entrepreneurship as part of the
SMART Bank Open Innovation Regional Programme organised across the entire
Kingdom and 200 hours of training given to more than 500 entrepreneurs in 12
regions; the 2022 programme, in its 5(th) year, focused on specific regional
themes and brought together 23 partner organisations including training
establishments, OFPPT institutes' regional divisions, regional investment
centres, regional councils and the CISE Cluster.

 

More than 4,000 small businesses and self-employed entrepreneurs
(auto-Entrepreneurs) supported since the Entrepreneurship Club was launched,
targeting the Kingdom's 12 regions; 10 modules on offer and 25 partner
organisations involved, helping generate 500 jobs.

 

Blue Space network supporting more than 120 incubated projects since the
former's launch in partnership with ISCAE Group, UEMF and Aïn Chock's Faculty
of Legal, Economic and Social Sciences, as a function of entrepreneurs'
respective goals and project status - BlueSpace Idea Generation &
Pre-incubation, BlueSpace Incubation, BlueSpace Network, and BlueSpace Growth
& Funds - resulting in 7 company formations, 3 patents and 4 go-to-market
strategies.

 

Integrated programme promoting regional investment via a series of regional
investment seminars and training to improve investors' entrepreneurial skills
in addition to a series of online conferences, 'Entrepreneurship Meetings',
attended by more than 2,700 participants.

 

CLOSER CUSTOMER RELATIONS FOSTERED THROUGH INNOVATION

 

New version of BANK OF AFRICA's Agence Directe platform launched, enabling
customers to open their account remotely without having to go into a branch.

 

Ties bolstered with Moroccan Citizens of the World through a range of digital
products and services, facilities for accessing high added value financing as
well as support programmes and other local initiatives as part of the Marhaba
nationwide programme.

 

Blockchain technology adopted by BANK OF AFRICA to facilitate customers'
international transactions with BMCE Capital launching BK TradeChain, a
pioneering blockchain-based solution for processing OTC transactions in
financial markets.

 

NetGuardians' fraud prevention technology adopted by BANK OF AFRICA for trade
finance operations after a tie-up with Dltledgers, a Singaporean software
company.

 

DabaPay Pro launched, an innovative solution for storekeepers and
professionals, which sees BANK OF AFRICA enhance its range of mobile payment
services.

 

Partnership agreement signed between BTI Bank and Wafa Takaful enabling the
latter's products to be marketed across the BTI Bank network.

 

Damane Pay, a connected bank card, launched by Damane Cash as well as a
fintech payments service, after a tie-up with Paysend, a UK-based fintech, to
simplify money transfers to Morocco.

 

EXPERTISE IN IMPACT FINANCE AND SUSTAINABILITY

 

Cooperation agreement signed between BANK OF AFRICA and the European Bank for
Reconstruction and Development (EBRD) to develop a sustainable finance
framework for green, social and sustainable bond issues.

 

EUR 13 million financing facility secured from the European Bank for
Reconstruction and Development (EBRD) with the support of the Green Climate
Fund (GCF) and the European Union (EU) to encourage Moroccan companies to
transition to a green economy and help SMEs invest in clean technologies.

 

Two agreements signed by BANK OF AFRICA, one with the Moroccan Agency for
Energy Efficiency (AMEE) and the other with Cluster EnR, aimed at helping
decarbonise the Moroccan economy and promote adopt a low carbon strategy as
well as organising the 2(nd) Industrial Decarbonisation Conference in
Tangiers.

 

Funding provided to repower the Koudia El Baida wind farm in the
Tangier-Tetouan region, Africa's oldest large-scale wind farm and Morocco's
first independent renewable energy producer. At a cost of EUR 44 million, this
investment is designed to double the wind farm's existing capacity to 100 MW.

 

BANK OF AFRICA's commitment to the African continent underlined with it
becoming a founder-member of the African Business Leaders Coalition (ABLC).
This coalition of African business leaders, established by the United Nations
Global Compact, aims to advance sustainable growth, prosperity, and
development in Africa. BANK OF AFRICA's commitment evidenced with it signing
the Climate Statement in Sharm el-Sheikh as one of the 11 founding members of
the African Business Leaders Coalition.

 

The Bank's presence keenly felt at COP27 due to it participating on several
panels and events including (i) the Mainstreaming Climate Action in Financial
Institutions initiative, (ii) the annual Uniting Business Africa event, and
(iii) a side event to COP27 organised by the GPBM about the challenges and
opportunities of Climate Finance and, as an adjunct to COP 27, BANK OF AFRICA
appointed co-chair of the newly established Africa bureau for China's Green
Investment Principles for the Belt & Road initiative.

 

BANK OF AFRICA becomes the first Moroccan Bank to endorse Women's Empowerment
Principles (WEP), a partnership initiative of the United Nations Global
Compact and UN Women.

 

The Bank's commitment to joining the African network for diversity underlined
with it signing the Gender Diversity Corporate Charter to mark International
Women's Day.

 

Responsible Purchasing Charter adopted by BANK OF AFRICA as part of its
anti-bribery and prevention policy, with the latter designed to guarantee and
maintain the impartiality and objectivity of the Group's employees and
partners.

 

16 pre-school classrooms built and equipped in state schools in partnership
with the Ministry of National Education ahead of the 2022-2023 academic year
with 5 Medersat.com schools also renovated and refurbished.

 

390 pupils from the Medersat.com network - from the 11(th) cohort - obtained
the high school diploma at the June 2022 sitting with an overall pass rate of
79%, including 244 girls - 62.5% of total candidates - with 59% receiving a
commendation, 28 of whom earning the highest distinction.

 

Six new classrooms built and equipped by the BOA Foundation in Niger and two
school buildings built and renovated in Ivory Coast.

 

Sino-Moroccan cultural cooperation partnership agreement reached between BMCE
Bank Foundation, Rabat's Mohammed V University and the Confucius Institute
aimed at bolstering and facilitating human and cultural exchange between the
Kingdom of Morocco and the People's Republic of China.

 

Cooperation agreement reached between BMCE Bank Foundation and the ProFuturo
Foundation, enabling 16 Medersat.com network schools to obtain technological
resource kits giving access to an offline educational resource platform for
teachers and pupils.

 

AWARDS & CERTIFICATIONS

 

Mr Othman Benjelloun named 'African Personality of the Year' in 2022 and BANK
OF AFRICA 'Best African Bank' at the Africa Investments Forum & Awards
(AIFA) organised by Leaders League.

 

Dr Leïla MEZIAN BENJELLOUN, BMCE Bank Foundation's Chair, named 'Woman of the
Year' and awarded the Fez Gate Trophy in the Social Action category by the
Bouabate Fez Association as well as being named 'Woman of the Mediterranean
space' by the Three Cultures of the Mediterranean Foundation.

 

BANK OF AFRICA named 'Best SME Bank in Morocco' by the prestigious Global
Finance Magazine.

 

BANK OF AFRICA named 'Most Active Issuing Bank in Morocco in 2021' by the
European Bank for Reconstruction and Development (EBRD) in recognition of the
productive partnership forged between the two institutions in overseas trade
finance.

 

BANK OF AFRICA an award-winner in the MENA region's Financial Services
category for the 9(th) consecutive year at the 15(th) Arabia CSR Awards, for
its leadership in corporate social responsibility and sustainability

 

BANK OF AFRICA receives the award for Best Annual Sustainability Report within
the financial services industry for the 2(nd) consecutive year from the
Casablanca Stock Exchange, with a score of 97%.

 

SMAC ISO 37001 certification of BANK OF AFRICA's anti-bribery management
system successfully renewed.

 

The Bank's energy management system awarded dual certification - NM-50001 and
ISO 50001:2018 - by IMANOR and Bureau Veritas.

 

BOA Ghana named 'Trade Finance Bank of the Year 2022' by two leading
organisations, Innovation and Excellence Awards and Ghana Credit Excellence
Awards 2022.

 

BMCE Capital Gestion complying with the ISAE 3402 Type II Standard published
by the International Auditing and Assurance Standards Board (IAASB) following
an audit by Mazars, an advisory firm, and sees its services commitments and
ISO 9001:2015 certifications renewed following an external audit by Bureau
Veritas Morocco.

 

Eurafric Information named 'Top Employer' for the 4(th) consecutive year and
receives the European Identity and Cloud (EIC) 2022 award in the Identity
Fabrics & IDaaS category from KuppingerCole Analysts AG, a consulting
firm. BANK OF AFRICA's IT subsidiary officially approved as an Electronic
Certification Service Provider by the General Directorate for Information
Systems Security (DGSSI), which reports to the National Defence
Administration.

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
COMPANY

AT 31 DECEMBER 2022 BY GEOGRAPHICAL REGION

 

MOROCCO • 45%

SUB-SAHARAN AFRICA • 49%

EUROPE • 6%

 

 

PROFILE

 

14,825 EMPLOYEES

32        COUNTRIES

2,000   POINTS OF SALE

6.6       MILLION CUSTOMERS

 

 

RATINGS

 

MOODY'S

BA1,

STABLE OUTLOOK

 

Fitch Ratings

BB,

STABLE OUTLOOK

 

V.E

Non-financial rating

A+

 

 

BANK OF AFRICA, a leading pan-African financial group with an extensive
portfolio of brands and subsidiaries, is a diversified banking group with a
variety of business lines.

 

BANK OF AFRICA, Morocco's most internationally-oriented banking group, has
established itself as one of Africa's key economic and financial institutions,
leveraging a comprehensive network and operations in 20 African countries.

 

The Bank also plays a leading role and is strongly committed to environmental
causes and sustainable development, capitalising on its know-how in impact
finance and its reputation for social and environmental responsibility.

 

BANK OF AFRICA's Board of Directors pays tribute to the engagement of its
human capital and its shareholders for their determination to ensure that our
pan-African Group remains on a solid growth trajectory and develops
sustainably in each country in which it has operations. The Board also thanks
all its partners and customers for their ongoing confidence in our Group.

 

 

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

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