REG - Bank of Africa - Annual Financial Report

Bank of Africa SAAnnouncement

26/03/2024 10:00

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RNS Number : 3284I  Bank of Africa  26 March 2024

ir-bankofafrica.ma

 

BANK OF AFRICA

BMCE GROUP

 

ANNUAL RESULTS

31 DECEMBER 2023

 

 

A SOLID ANNUAL PERFORMANCE IN 2023

 

BANK OF AFRICA - BMCE Group's Board of Directors, Chaired by Mr Othman
BENJELLOUN, met Friday 22 March 2024 at the Bank's head office in Casablanca.
It reviewed the activity of the Bank and of the Group for the financial year
ended 31 December 2023 and drew up the financial statements for the period in
question.

 

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

 

It will also propose to an Extraordinary General Meeting of Shareholders a
capital increase of up to MAD 632 million by incorporating reserves and
issuing bonus shares.

 

The brochure containing the 2023 annual 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 ACTIVITY (MAD MILLIONS)

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
COMPANY

 

+16%

December 2022

December 2023

 

Significant growth of +16% in net income attributable to shareholders of the
parent company to MAD 2.7 billion. Excluding the contribution to the
Earthquake Relief Fund, the increase was +22%.

 

NET BANKING INCOME

 

+9%

December 2022

December 2023

 

Sharp improvement in the Group's revenues with consolidated net banking income
up +9% to almost MAD 17 billion at 31 December 2023.

 

CUSTOMER LOANS

(excluding resales)

 

+3%

December 2022

December 2023

 

Consolidated loans, excluding resales, increased by +3% to MAD 201.5 billion
at 31 December 2023.

 

CUSTOMER DEPOSITS

(excluding repos)

 

-1.8%

December 2022

December 2023

 

Customer deposits, excluding repos, declined by -1.8% to MAD 237 billion at 31
December 2023 due to restrained growth of term deposits in Morocco and an
unfavourable exchange rate in sub-Saharan Africa.

 

 

PARENT ACTIVITY (MAD MILLIONS)

 

NET INCOME

 

+3%

December 2022

December 2023

 

Parent net income rose by +3% to MAD 1.6 billion at 31 December 2023 after
factoring in the Bank's contribution to the Earthquake Relief Fund. Excluding
this exceptional item, net income posted double-digit growth (+12%).

 

NET BANKING INCOME

 

+8%

December 2022

December 2023

 

The Bank's net banking income in Morocco rose by as much as +8% to MAD 7.2
billion at 31 December 2023.

 

CUSTOMER LOANS

(excluding resales)

 

+6%

December 2022

December 2023

 

Parent customer loans, excluding resales, grew by +6% to MAD 134 billion at 31
December 2023.

 

CUSTOMER DEPOSITS

(excluding repos)

 

Broadly unchanged

December 2022

December 2023

 

Parent customer deposits, excluding repos, broadly unchanged at MAD 148
billion at 31 December 2023, while non-interest-bearing customer deposits grew
strongly (+7%).

 

 

BANK OF AFRICA's Board of Directors paid tribute to its Human Capital for the
latter's ongoing determination to ensure that our pan-African Group remains on
a solid growth trajectory in every country in which it has operations. The
Board would also like to thank the Group's shareholders, partners and
customers for their ongoing confidence.

 

 

SOLID RESULTS AND FINANCIAL POSITION

 

THE GROUP

 

BANK OF AFRICA Group's consolidated net banking income rose by +9% to MAD 16.9
billion at 31 December 2023, driven by growth of the core business - fee
income +14%, net interest income +4% and income from market operations showing
recovery.

 

Significant improvement in the Group's consolidated cost-to-income ratio,
which stood at 50.6% in 2023 versus 53% at 31 December 2022, with growth in
the Group's expenses contained at +4% excluding the impact from the
contribution to the Earthquake Relief Fund. The ratio has trended down by 8.5
percentage points between 2019 and 2023.

 

Group gross operating income grew strongly to MAD 8.4 billion, up +14%
year-on-year.

 

Moderate increase (+4%) to MAD 2.7 billion in the consolidated cost of risk at
31 December 2023, resulting in a cost-of-risk ratio of 1.23%, unchanged on
2022.

 

Robust growth of +16% to MAD 2.7 billion in net income attributable to
shareholders of the parent company. Excluding the impact from the contribution
to the Earthquake Relief Fund, earnings grew by +22% to MAD 2.8 billion.

 

Significant contribution from African operations to the Group's earnings in
2023, accounting for 56% of Group earnings versus 42% from Moroccan
operations.

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
COMPANY

AT 31 DECEMBER 2023 BY GEOGRAPHICAL REGION

 

EUROPE • 2%

MOROCCO • 42%

SUB-SAHARAN AFRICA • 56%

 

Consolidated total assets broadly unchanged (+1%) following efforts made to
contain growth in the fourth quarter in both Morocco and sub-Saharan Africa.

 

Group shareholders' equity bolstered by +6% to MAD 26.8 billion at 31 December
2023.

 

IN MOROCCO

 

Net banking income at BANK OF AFRICA SA up +8% to MAD 7.2 billion, driven by
all business lines with fee income +5%, net interest income +8% and income
from market operations showing recovery.

 

NET BANKING INCOME

AT 31 DECEMBER 2023 BY BUSINESS LINE

 

MISCELLANEOUS • 5%

NET INTEREST INCOME • 64%

FEE INCOME • 17%

INCOME FROM MARKET OPERATIONS • 14%

 

Positive results from the operational efficiency plan implemented in 2023,
with the parent company's general operating expenses down -1% to MAD 3.7
billion, a level last seen 6 years previously; cost-to-income ratio of 51% at
31 December 2023 versus 55.8% at 31 December 2022.

 

Solid growth of +9% in gross operating income to MAD 3.5 billion at 31
December 2023.

 

The Bank's net income up +3% to MAD 1.6 billion after factoring in the
contribution to the Earthquake Relief Fund; excluding this exceptional item,
net income posted double-digit growth (+12%).

 

Healthy commercial performance reflecting loan growth of +6% in Morocco to MAD
134 billion, primarily due to business loan growth of +7.6% as well as a
strong performance by non-interest bearing customer deposits, up +7%.

 

Improvement in BANK OF AFRICA's share of the loan market to 12.48% at 31
December 2023 versus 12.35% at 31 December 2022.

 

Effective recovery of bank loans with write-backs up +58.2% in 2023, resulting
in a cost of risk of MAD 1 billion, up +10%, and a cost-of-risk ratio of 0.8%.

 

IN AFRICA

 

Substantial increase (+32%) to EUR 180 million in net income attributable to
shareholders of the parent company at Bank Of Africa Holding (Luxembourg) at
31 December 2023.

 

Strong growth of +11% to EUR 755 million in net banking income, driven by
growth in fee income (+16%) and net interest income (+11%).

 

Increase in general operating expenses contained at +3% at EUR 368 million at
31 December 2023.

 

 

ONGOING INNOVATION BENEFITING CUSTOMERS

Tie-up between BANK OF AFRICA and Royal Air Maroc, the Moroccan member airline
of the Oneworld alliance, with the launch of Pay&Fly in 2024, an
innovative digital payments offer giving customers several exclusive benefits
with each transaction as well as bolstering synergies between the airline and
banking services industries.

Custody Direct, a vehicle for managing mutual fund portfolios, integrated with
BANK OF AFRICA's Business Online platform as part of a process of digitising
business services. As a result, business customers are able to manage their
assets online and carry out a series of transactions while enjoying a novel,
seamless and secure customer experience.

BANK OF AFRICA to launch 'CapAccess by BOA' in 2024, a bank loan tied to a
subordinated loan, after agreements were signed by the Professional
Association of Moroccan Banks, the Mohammed VI Fund for Investment and
Tamwilcom to enhance the role played by banks in financing the domestic
economy.

 

Introduction of a 100% online process for opening brokerage accounts by BMCE
Capital Bourse, the first brokerage firm to offer this innovative service,
offering clients a seamless and hands-on investor experience.

 

BMCE Capital Investments, the Group's private equity subsidiary, launched
'Capital Croissance', its second private equity fund, to support Moroccan
companies' development.

 

Eurafric Information, BANK OF AFRICA's IT subsidiary, introduced trust
platform services which meet current regulatory standards under the AfricTrust
brand, in response to the national digital strategy for businesses.

 

Bank Al Karam, BANK OF AFRICA Group's participatory banking subsidiary given a
new identity while expanding its branch network with the opening of a new
branch in El Jadida. Additional branch openings are scheduled across the
Kingdom in 2024.

 

Strategic partnership launched between Damane Cash, a digital finance company,
and CTM Messagerie, a logistics and distribution specialist, aimed at
enhancing repayment channels for CTM Messagerie's customers.

 

 

KEY INITIATIVES TO STIMULATE THE ECONOMY AND ENCOURAGE INVESTMENT

 

EUR 50 million credit line extended to BANK OF AFRICA in 2023 from the
European Bank for Reconstruction and Development (EBRD) to increase financing
for small- and medium-sized enterprises.

 

Tie-up between BANK OF AFRICA and the Export-Import Bank of China to mark the
2023 World Bank Group-International Monetary Fund (IMF) Annual Meetings in
Marrakech, aimed at bolstering trade between China and Africa and stimulating
the African continent's economic development.

 

BANK OF AFRICA celebrated the winners of its 5(th) SMART Bank Open Innovation
Regional Programme which has been extended to the Souss region.

 

BANK OF AFRICA, in partnership with the Moroccan Agency for Investment and
Export Development (AMDIE), hosted a series of meetings in Rabat, Agadir and
Tangier about the new Investment Charter.

 

BANK OF AFRICA bolstered its commitment to the business sector by organising
'Business Meetings by BOA', a series of meetings focused on economic analysis
and sector prospects, underlining the Bank's ongoing support for its business
customers and their development.

 

Partnership bolstered between BANK OF AFRICA and the IFC to support SMEs in
Africa with the latter extending a USD 171.2 million financing facility to
nine BOA subsidiaries in Benin, Burkina Faso, Côte d'Ivoire, Kenya, Mali,
Niger, Senegal, Togo and Uganda.

 

BOA Togo's commitment to female entrepreneurship underlined by signing a
strategic partnership agreement with Togo's Association of Women Business
Leaders (AFCET), making it easier for women-owned SMEs to access financing,
thereby catalysing female entrepreneurial potential in Togo.

 

Trade finance transaction guarantee issued by the African Development Bank
(AfDB) to BOA Tanzania, thereby contributing to the growth of Tanzanian
businesses by providing easier access to financing and enabling them to
develop their overseas business activities.

 

 

RATINGS

 

MOODY'S

BA1,

STABLE OUTLOOK

 

V.E

Non-financial rating

A+

 

Fitch Ratings

BB,

STABLE OUTLOOK

 

 

RESPONSIBLE PRACTICES FOR POSITIVE IMPACT

 

In response to the terrible earthquake which struck Morocco's Al-Haouz
province 8 September 2023, BANK OF AFRICA Group made every effort to support
the victims of disaster areas as part of relief measures issued by His Majesty
King Mohammed VI. The Bank contributed to the Earthquake Relief Fund set up on
the instigation of His Majesty King Mohammed VI to manage the earthquake's
effects and oversaw the collection of donations via its branch network and
digital channels as well as organising blood donation campaigns.

 

The Group's ESG Sustainability Strategy was updated in 2023 with the latest
version containing five undertakings underpinned by the UN Sustainable
Development Goals, manageable at subsidiary and country levels: 1. Proactively
integrate sustainability into Group Governance and performance management 2.
Innovative offers and services promoting resilience to climate change and
environmental transition 3. Confidence in human capital and its ability to
create value through the Group's talent 4. Confidence, customer satisfaction
and market share growth 5. Catalyst for human and regional development.

 

BANK OF AFRICA ranked first among all listed Moroccan companies by LSEG Data
& Analytics, a subsidiary of the London Stock Exchange, in partnership
with the Casablanca Stock Exchange, following a rigorous audit of companies'
ESG performance across 10 main themes. The Bank obtained a score of 73 out of
100, placing it in the top 10% of a universe of 11,759 companies rated around
the world, all sectors combined.

 

BANK OF AFRICA an award-winner in the MENA region's Financial Services
category for the 10(th) consecutive year at the 16(th) Arabia CSR Awards, in
recognition of its leadership in corporate social responsibility and
sustainability.

 

Pan-African Sustainability and Impact Finance Chair launched by BANK OF AFRICA
Group, underlining its leadership role in Morocco and Africa in sustainability
and impact finance. This innovative initiative brings together a number of
academic and research-based partner establishments in Morocco including
Marrakesh's Cadi Ayyad University, Fez's Euro-Mediterranean University,
Casablanca's Hassan II University, the Hassania School of Public Works,
Agadir's Ibn Zohr University and the ISCAE Group.

 

Regional decarbonisation tours organised in Casablanca and Tangier following
the signing of two agreements in 2022, one with the Moroccan Agency for Energy
Efficiency (AMEE) and the other with Cluster EnR, aimed at helping decarbonise
the Moroccan economy and adopting a low carbon strategy.

 

Increase in the rate of bank account ownership by women from 35% in 2022 to
41% in 2023, highlighting the progress made towards women's empowerment and
financial inclusion and their growing participation in the economy.

 

'SOLIDARITY' card launched by BANK OF AFRICA in partnership with the Women's
Solidarity Association (ASF) as part of the Bank's ongoing commitment to
promoting women's rights. This initiative aims to provide financial support to
the ASF by remitting some of the fees and commissions earned from the take-up
of this new bank card.

 

BANK OF AFRICA participated in the '16 Days of Activism against Gender-Based
Violence' campaign whose goal is to raise awareness and mobilise society to
combat this type of violence while advocating for cultural and legal changes
in favour of gender equality.

 

Cap'Women, an in-company innovation programme designed exclusively for women,
launched by BMCE Capital to support female employees in their endeavours to
create high value-added digital solutions and make a major contribution to the
Group's overall digital strategy.

 

BMCE Capital Conseil participated in the 2(nd) sustainability regional caravan
organised by Cluster EnR, attracting more than one hundred industrial and
financial institutions, to highlight the main opportunities and investment
potential of eco-investing and the available support measures.

 

 

COMMITMENT BOLSTERED IN FAVOUR OF SOCIAL PROGRESS AND COMMUNITY DEVELOPMENT

 

Dr Leïla MEZIAN BENJELLOUN, BMCE Bank Foundation's Chair, named 'Woman of the
Mediterranean space' by the Regional Government of Andalusia in partnership
with the Three Cultures of the Mediterranean Foundation for her commitment to
preserving and promoting history, heritage, language, culture and education in
the Mediterranean region as well as inter-Mediterranean cooperation and
supporting the most disadvantaged populations, including women and girls in
rural areas.

 

Agreement signed between BMCE Bank Foundation and the ProFuturo Foundation
aimed at developing digital education as a catalyst for social and economic
development in Morocco.

 

Cultural cooperation partnership agreement reached between BMCE Bank
Foundation, Rabat's Mohammed V University and the Confucius Institute aimed at
extending Mandarin Chinese teaching across the Medersat.com network.

 

 

69 schools, including 6 in sub-Saharan Africa: 2 in Senegal, 1 in Congo
Brazzaville, 1 in Mali, 1 in Rwanda and 1 in Djibouti

 

570 total number of teachers across the Medersat.com network, 52% of whom are
women

 

150 pre-school classrooms built as part of a national programme to make
pre-school education more widely available

 

38 schools awarded the 'Eco-School' label by the Mohammed VI Foundation

 

12,000 beneficiaries of the literacy programme

 

34,400 pupils, 50% of whom are girls, benefiting from services provided by the
Medersat.com network

 

 

AWARDS & CERTIFICATIONS

 

Mr Othman Benjelloun, BANK OF AFRICA's Chairman, presented with the Economy
and Finance Award in 2024 from Morocco's Diplomatic Foundation at the 3(rd)
Public Diplomacy Awards ceremony; nine awards presented to
non-government-related nominees in recognition of their efforts to enhance
Morocco's stature on the international stage and in bolstering relations and
cooperation between the Kingdom and other countries.

 

IN MOROCCO

 

BANK OF AFRICA

 

• BANK OF AFRICA named 'Best Bank on the African Continent' and 'Best SME
Bank in Morocco' by the prestigious Global Finance Magazine

 

• 'Best Bank in North Africa in 2023' by The African Banker

 

• Double recognition at Euromoney's Awards for Excellence with the Bank
named 'Best Bank for SMEs in Morocco' and 'Best Bank for ESG in Morocco'

 

• BANK OF AFRICA named 'Most Active Partner Bank in Morocco in 2022' by the
European Bank for Reconstruction and Development (EBRD), awarded in 2023

 

• 'Most admired financial brand in Morocco' and in the top 10 in Africa by
Brand Africa 100, a report published in conjunction with the African Digital
Summit 2023

 

• BANK OF AFRICA one of four Moroccan banking groups to be ranked in the
Forbes MENA list of '50 most valued banks'

 

• Successful follow-up ISO 45001 certification audits of BANK OF AFRICA's
occupational health and safety management system, ISO 14001 certification of
its environmental management system renewed by Bureau Veritas and its energy
management system awarded dual certification ISO 50001 following a joint audit
by Bureau Veritas and IMANOR

 

BMCE Capital

 

'Best Investment Bank in Morocco in 2023' by International Investor Magazine

 

BMCE Capital Gestion

 

'Lipper MENA Markets 2023 Fund Awards' in the 'Mena Markets' and 'Mena Markets
Domestic' categories

 

Eurafric Information

 

'Top Employer Morocco 2024' by the Top Employers Institute for the 5(th)
consecutive year in recognition of its commitment to fostering a high-quality
working environment

 

IN AFRICA

 

BOA Ghana

 

'Trade Finance Bank of the Year 2022' by two leading organisations, Innovation
and Excellence Awards and Ghana Credit Excellence Awards 2022, awarded in 2023

 

BOA Capital Securities

 

'Best Investment Management and Brokerage Company in Morocco in 2023' at the
BRVM Awards

 

 

PROFILE

 

~ 15,000          EMPLOYEES

~ 6.6                MILLION CUSTOMERS

~ 2,000            POINTS OF SALE

32                    COUNTRIES

 

 

BANK OF AFRICA is a leading pan-African financial group. With an extensive
portfolio of brands and subsidiaries, BANK OF AFRICA's universal banking
business model encompasses a range of business lines including commercial
banking, investment banking and specialised financial services such as
leasing, factoring, consumer credit and participatory banking.

 

 

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

BANK OF AFRICA

Public limited company with a share capital of MAD 2,125,656,420 - Head
office: 140, Avenue Hassan II

Approved credit institution by decree of the Minister of Finance and
Investment No. 2348-94 of 23 August 1994

Casablanca Trade Register No. 27129

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