REG - Bank of Africa - Half Year Financial Results

Bank of Africa SAAnnouncement

26/09/2023 09:15

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RNS Number : 6721N  Bank of Africa  26 September 2023

 

 

ir-bankofafrica.ma

 
          BANK OF AFRICA

 
                                    BMCE
GROUP

 

HALF-YEAR RESULTS

 

30 JUNE 2023

 

FIRST HALF 2023 - POSITIVE GROWTH IN BUSINESS ACTIVITY

 

BANK OF AFRICA - BMCE Group's Board of Directors, chaired by Mr Othman
BENJELLOUN, met Friday 22 September 2023 at the Bank's head office in
Casablanca. It reviewed the business activity of the Bank and of the Group for
first half 2023 and drew up the financial statements for the period in
question.

 

In response to the terrible earthquake that struck Morocco's Al-Haouz
province, the Board of Directors, its Chairman, Mr Othman BENJELLOUN and BANK
OF AFRICA Group's entire staff wish to express their solidarity alongside the
Moroccan people and their commitment to supporting the victims of disaster
areas as part of the measures issued by His Majesty King Mohammed VI.

 

The first half 2023 financial report is published on the website
www.ir-bankofafrica.ma (http://www.ir-bankofafrica.ma) .

 

 

CONSOLIDATED BUSINESS ACTIVITY (MAD MILLIONS)

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
COMPANY

 

+12%

June 2022

June 2023

 

Net income attributable to shareholders of the parent company grew by +12% to
MAD 1.4 billion at 30 June 2023.

 

NET BANKING INCOME

 

+8%

June 2022

June 2023

 

Consolidated net banking income rose by +8% to MAD 8.4 billion at 30 June 2023
versus MAD 7.8 billion at 30 June 2022.

 

CUSTOMER LOANS

(excluding resales)

 

+1%

December 2022

June 2023

 

Consolidated customer loans, excluding resales, increased by +1% to MAD 198
billion versus MAD 196 billion at 31 December 2022.

 

CUSTOMER DEPOSITS

(excluding repos)

 

-4%

December 2022

June 2023

 

Consolidated customer deposits, excluding repos, fell by -4% to MAD 231
billion versus MAD 241 billion at 31 December 2022.

 

 

PARENT BUSINESS ACTIVITY (MAD MILLIONS)

 

NET INCOME

 

+6%

June 2022

June 2023

 

BANK OF AFRICA S.A.'s net income increased by +6% year-on-year to MAD 1.2
billion at 30 June 2023.

 

NET BANKING INCOME

 

+4%

June 2022

June 2023

 

The Bank's net banking income rose by +4% to MAD 3.9 billion at 30 June 2023.

 

CUSTOMER LOANS

(excluding resales)

 

+3.8%

December 2022

June 2023

 

Continued strong business performance by the Bank in Morocco with customer
loans, excluding resales, up +3.8% to MAD 121 billion at 30 June 2023.

 

CUSTOMER DEPOSITS

(excluding repos)

 

-3.9%

December 2022

June 2023

 

Customer deposits in Morocco, excluding repos, fell by -3.9% to MAD 145
billion at 30 June 2023 versus MAD 151 billion at 31 December 2022.

 

 

ir-bankofafrica.ma

 

GROWTH REMAINS POSITIVE

 

Consolidated net banking income increased by +8% to MAD 8.4 billion at 30 June
2023, driven by growth of the core business - fee income +25% and net interest
income +9% - despite a drop in income from market operations.

 

Group earnings registered double-digit growth of +12% to MAD 1.4 billion at 30
June 2023 driven by organic growth and a high level of diversification.

 

Sub-Saharan African operations contributed strongly, accounting for almost 50%
of Group earnings.

 

General operating expenses remained firmly under control with the increase at
the consolidated level contained at +3% due to the Bank's cost rationalisation
programme, resulting in a cost-to-income ratio of 48.6% at 30 June 2023, an
improvement of 2.5 percentage points.

 

Consolidated gross operating income grew by +14% to MAD 4.3 billion compared
to 30 June 2022.

 

The consolidated cost of risk increased by +9% year-on-year to MAD 1.5
billion, resulting in a cost of customer risk ratio of 1.2% at 30 June 2023.

 

Revenue from domestic banking operations increased with net banking income up
+4% to MAD 3.9 billion, driven by +5% growth in net interest income and a +9%
rise in fee income.

 

The Bank's net income rose by +6% to MAD 1.2 billion while parent company
gross operating income grew by +7% to MAD 2.2 billion.

 

Parent company general operating expenses were broadly unchanged year-on-year
at MAD 1.8 billion, resulting in an improvement in the cost-to-income ratio to
44.9% at 30 June 2023 versus 46.8% at 30 June 2022.

 

Total assets rose by +3.3% to MAD 396 billion at the consolidated level and by
+6% to MAD 262 billion at the parent level at 30 June 2023.

 

Consolidated customer loans, excluding resales, grew by +1% to MAD 198 billion
at 30 June 2023.

 

Consolidated customer deposits, excluding repurchases, fell by -4% to MAD 231
billion versus MAD 241 billion at 31 December 2022.

 

Continued strong business performance in Morocco with loans to the economy up
+4.6%, resulting in an increased share of the market at 12.66% versus 12.35%
at 31 December 2022.

 

Customer deposits in Morocco fell by -3.7% to MAD 143 billion, resulting in a
12.70% share of the market at 30 June 2023, although sight deposits remained
broadly unchanged in first half 2023.

 

BOA Afrique demonstrated a high level of resilience despite the challenging
economic and political environment in sub-Saharan Africa with consolidated net
income up +16% at EUR 124.5 million and net banking income +10.7% higher at
EUR 366 million at 30 June 2023.

 

BANK OF AFRICA's shareholders' equity was bolstered in 2023 after issuing a
MAD 500 million perpetual subordinated note containing a loss-absorption and
coupon-cancellation provision.

 

 

ONLINE BANKING BOLSTERED

 

BANK OF AFRICA's range of digital and commercial services enhanced with a
number of innovative customer service solutions and new promotional deals on
the CréditDaba.ma website together with a 'welcome package' for self-employed
persons and other 100% digital packages for retail, private banking and
professional banking customers.

 

Range of services extended with the latest version of Agence Directe offering
tailor-made solutions for professional customers incorporating cutting-edge
biometric customer authentication technology.

 

BMCE Direct app enhanced with new services better adapted to customers' needs,
such as instantaneous transfers, smoother and more secure messaging between
customers and advisors, an optimised product subscription process and
increased transparency in transactions and management services.

 

Business Online portal for business customers further optimised with the
introduction of a mobile version as well as online English language and demo
versions.

 

 

SUSTAINABILITY AND VALUE CREATION

 

Partnership agreements bolstered between BMCE Bank Foundation and its partners
- the Ministry of National Education, Preschool and Sports, the French
Institute of Morocco, the Confucius Institute, Teach for Morocco and the
ProFuturo Foundation - with new activities and new centres provided, an
enhanced educational offering, teacher training and an extended range of
technological equipment.

 

Educational robotics and artificial intelligence teaching extended and
implemented in 20 Medersat.com network schools, benefiting 1,200 pupils.

 

Mohammed VI Tower Observatory created by the Bank's Chairman, Mr Othman
Benjelloun, and dedicated to His Majesty King Mohammed VI, highlighting the
important contributions made by Al-Andalus civilisation to astronomy.

 

Strong ongoing efforts by BANK OF AFRICA in support of businesses, including
young entrepreneurs, through an extensive range of financial, non-financial
and support services for Moroccan SMEs, in particular, via the Bank's
Entrepreneurship Club, START TPE, INTELAKA and other loans covering up to 60%
of a project's overall funding needs, as well as support, training and
coaching.

 

Positive impact loans account for nearly one-third of the Bank's business
loans in Morocco, with a strong emphasis on environmental financing.

 

A series of regional conferences was organised by BANK OF AFRICA in
partnership with the Moroccan Investment & Export Development Agency
(AMDIE) to help implement the new Investment Charter.

 

Memorandum of Cooperation signed by BANK OF AFRICA, the AMDIE, the Wuhan
Economic and Technological Development Zone and the Sino-International
Entrepreneurs Federation to attract Chinese investment in Morocco.

 

Cap'Women, an internal innovation programme exclusively for women, launched by
BMCE Capital, to help female employees create high value-added digital
solutions.

 

Participation by BMCE Capital Conseil in the 2(nd) sustainability regional
caravan organised by Cluster ENR, attracting more than one hundred industrial
and financial institutions, highlighting the main opportunities and investment
potential of eco-investing and presenting the main solar, wind and
desalination projects currently under development or to be developed in the
future.

 

 

AWARDS AND DISTINCTIONS

 

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.

 

Mohammed VI Tower recognised for engineering excellence after winning the
'Best Performance in Engineering Projects' Award at the annual Caminos Madrid
2022 Awards.

 

BANK OF AFRICA named 'Best Bank on the African Continent' by the prestigious
Global Finance Magazine.

 

BANK OF AFRICA named as the most admired financial brand in Morocco and in the
top 10 in Africa by Brand Africa 100, a report published in conjunction with
the 9(th) 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'.

 

BMCE Capital named 'Best Investment Bank in Morocco in 2023' by International
Investor Magazine.

 

BANK OF AFRICA's energy management system awarded dual certification - ISO
50001:2018 and NM-50001 - following a joint audit by Bureau Veritas and
IMANOR.

 

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
COMPANY

AT 30 JUNE 2023 BY GEOGRAPHICAL REGION

 

MOROCCO • 50%

SUB-SAHARAN AFRICA • 49%

EUROPE • 1%

 

NET BANKING INCOME

AT 30 JUNE 2023 BY GEOGRAPHICAL REGION

 

MOROCCO • 46%

SUB-SAHARAN AFRICA • 50%

EUROPE • 4%

 

 

PROFILE

 

15,005 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's Board of Directors pays tribute to its Human Capital and its
shareholders for their ongoing engagement and determination to generate
shareholder and societal value while promoting the ultimate goal of
sustainable socio-economic development in Morocco and in Africa. The Board
would also like to thank 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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