REG - Bank of Africa - Half-year Report

Bank of Africa SAAnnouncement

26/09/2022 09:15

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RNS Number : 6066A  Bank of Africa  26 September 2022

 

 

ir-bankofafrica.ma

 
          BANK OF AFRICA

 
                                    BMCE
GROUP

 

HALF-YEAR RESULTS

 

30 JUNE 2022

 

FINANCIAL AND BUSINESS MOMENTUM MAINTAINED IN FIRST HALF 2022

 

BANK OF AFRICA - BMCE Group's Board of Directors, chaired by Mr Othman
BENJELLOUN, met Friday 23 September 2022 at the Bank's head office in
Casablanca. It reviewed the business activity of the Bank and of the Group for
first half 2022 and drew up the financial statements for the period in
question.

 

The first half 2022 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

 

+6.2%

June 2021: 1 195

June 2022: 1 268

 

Net income attributable to shareholders of the parent company +6.2% to almost
MAD 1.3 billion at 30 June 2022.

 

NET BANKING INCOME

 

+6.3%

June 2021: 7 295

June 2022: 7 754

 

The Group's net banking income +6.3% to MAD 7.8 billion at 30 June 2022 versus
MAD 7.3 billion at 30 June 2021.

 

CUSTOMER LOANS

 

+2.7%

December 2021: 182 400

June 2022: 187 367

 

Consolidated loans, excluding resales, +2.7% to MAD 187.4 billion versus MAD
182.4 billion at 31 December 2021.

 

CUSTOMER DEPOSITS

 

+3.1%

December 2021: 218 973

June 2022: 225 697

 

The Group's customer deposits +3.1% to MAD 226 billion versus MAD 219 billion
at 31 December 2021.

 

 

PARENT BUSINESS ACTIVITY (MAD MILLIONS)

 

NET INCOME

 

+4%

June 2022: 1 137

June 2021: 1 095

 

BANK OF AFRICA S.A.'s net income +4% year-on-year to MAD 1.14 billion at 30
June 2022.

 

NET BANKING INCOME

 

+1%

June 2021: 3 784

June 2022: 3 809

 

The Bank's net banking income up almost +1% to MAD 3.8 billion at 30 June
2022.

 

CUSTOMER LOANS

 

+4.7%

December 2021: 122 262

June 2022: 127 999

 

Strong growth of +4.7% in the Bank's customer loans to MAD 128 billion at 30
June 2022.

 

CUSTOMER DEPOSITS

 

+1.7%

December 2021: 139 292

June 2022: 141 620

 

Customer deposits in Morocco +1.9% to almost MAD 142 billion at 30 June 2022
versus MAD 139 billion at 31 December 2021.

 

ir-bankofafrica.ma

 

POSITIVE REVENUE AND PROFIT GROWTH

 

Consolidated net banking income +6.3% to MAD 7.7 billion at 30 June 2022,
driven by positive growth across business lines with fee income +12% and net
interest income +9%.

 

Parent company revenue up almost +1% to MAD 3.8 billion thanks to a solid
performance by the core business with fee income +7% and net interest income
+4% despite a -7% decline in income from market operations.

 

Parent company general operating expenses broadly unchanged year-on-year at
MAD 1.8 billion, resulting in a cost-to-income ratio of 46.8% at 30 June 2022
versus 47.1% at 30 June 2021, an improvement of 0.3 percentage points.

 

The rise in general operating expenses at the consolidated level was contained
at +2%, resulting in a cost-to-income ratio of 51.1% at 30 June 2022, an
improvement of 2.3 percentage points compared to 30 June 2021.

 

Consolidated gross operating income +12% to MAD 3.8 billion compared to 30
June 2021 and +4% to MAD 2 billion at the parent level.

 

Consolidated cost of risk +8% year-on-year to MAD 1,384 million in 2022 and
annualised cost of risk +1.3%, broadly unchanged compared to 2021.

 

Net income attributable to shareholders of the parent company +6.2% to MAD
1,268 million with net income at the parent level +4% to MAD 1,137 million.

 

BANK OF AFRICA Group's total assets +5.5% to MAD 364 billion.

 

Shareholders' equity bolstered in first half 2022 with MAD 1 billion of
perpetual subordinated debt issued.

 

Strong business performance with consolidated customer loans, excluding
resales, +2.7% to MAD 187.4 billion at 30 June 2022, driven by a 4.7% increase
in lending by the Bank in Morocco.

 

BANK OF AFRICA's share of the overall loan market rises to 12.91% at 30 June
2022.

 

Consolidated customer deposits +3% to MAD 226 billion at 30 June 2022 versus
MAD 219 billion at 31 December 2021.

 

Customer deposits at the parent level +1.7% to MAD 141.6 billion at 30 June
2022 resulting in a 13.23% share of the market at 30 June 2022.

 

 

 

PRODUCT RANGE ENHANCED IN SUPPORT OF CUSTOMERS

 

Closer ties with the Moroccan diaspora through a bespoke range of products and
technical services, high value-added support-based financing facilities and
increased assistance in customers' country of residence, on round trips and
during their stay in Morocco.

 

BANK OF AFRICA has further raised its profile in the Young Professionals
segment by launching a new and competitive range comprising an attractive
package which includes mortgage and consumer loans to meet the basic needs of
Young Professionals.

 

'YASSIR' POSEF programme launched in partnership with the Mohammed VI
Foundation, enabling teachers to apply for an instant regulated and subsidised
loan.

 

New instant regulated loan launched in partnership with the Caisse Marocaine
des Retraites (CMR) for BANK OF AFRICA's retired customers with repayments
debited at source from a CMR pension.

 

Participation by BANK OF AFRICA in the 3(rd) Property Caravan organised by the
Mohammedia Foundation for Social Action by Magistrates and Legal
Professionals.

 

Ongoing strategy to digitise BANK OF AFRICA's products and services by
launching the latest version of the Agence Directe platform, offering an
enhanced customer experience.

 

BANK OF AFRICA's commitment to payment systems inter-connection in Africa as a
means of accelerating intra-African trade underlined at the 14(th) US-Africa
Business Summit 2022.

 

Two agreements signed by BANK OF AFRICA for members of the Foundation for the
Promotion of Social Action for the benefit of Civil Servants and Agents at the
Ministry of Youth and Sport and members of the Association for Social Action
at the National Agency for the Promotion of Employment and Skills (ANAPEC),
enabling BANK OF AFRICA to extend its new civil service offer to all
customers.

 

SANTE LEASE, a new finance product launched by the Group's Maghrebail
subsidiary, enabling doctors and dentists to establish or develop their
medical practice.

 

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

 

Fintech payment service launched as a result of a partnership between Damane
Cash, a BANK OF AFRICA subsidiary specialising in payment solutions and
Paysend, a UK-based fintech company. The venture is designed to simplify money
transfers in Morocco and enable Moroccans with a bank account to carry out
instant international transactions at discounted rates.

 

 

 

 

PROMISING PERFORMANCE BY THE GROUP'S SUBSIDIARIES

 

Strong performance by BOA Group in terms of revenue and profit growth with net
banking income +9% and net income attributable to shareholders of the parent
company +38%, driven primarily by the core business, particularly net interest
income and fee income.

 

Salafin's net production +7.1% to MAD 648 million at 30 June 2022, primarily
due to a sales reorganisation, regained business momentum and increasingly
competitive financing deals. Net income +9% à MAD 48 million at 30 June 2022.

 

Maghrebail's production +12.2% to MAD 1,460 million at 30 June 2022 due to
strong business momentum in every region in which the subsidiary is present.
As result, Maghrebail is ranked 3(rd) within the industry with a 23.65% share
of the market at 30 June 2022. Net income +16.5% to MAD 56.7 million at 30
June 2022 versus MAD 48.6 million at 30 June 2021.

 

Maroc Factoring's net banking income +12.7% to MAD 16 million at 30 June 2022
with net income +26% to MAD 1.87 million.

 

Strong performance by the Group's Madrid-based subsidiary with net income +43%
compared to 30 June 2021 to EUR 6.8 million. This was due to strong business
momentum by the trade finance business, as illustrated by a steep increase in
foreign trade (+34%) and finex (+14%) transaction volumes at 30 June 2022.

 

 

GROUP'S ONGOING COMMITMENT TO A SUSTAINABLE ECONOMY

 

Ligne Bleue, BANK OF AFRICA's exclusive agreement with the AFD and the EIB
signed in 2017, provides assistance and up to EUR 6 million of funding to
manufacturing companies for projects such as water treatment plants.

 

BANK OF AFRICA continuing to market facilities launched in partnership with
the EBRD such as the EUR 13 million Green Economy Financing Facility (GEFF II)
and the EUR 10 million Green Value Chain (GVC).

 

BANK OF AFRICA appointed as founder-member of the African Business Leaders
Coalition (ABLC), established in May 2022 by the United Nations Global
Compact, to advance sustainable growth, prosperity, and development in Africa.

 

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 sustainable finance partnership with the World Environment
Center (WEC), signed in March 2020, further bolstered with the visit of the
United States Department of State to the Bank's head office in June. The
partnership provides technical assistance to businesses, including access to
the WEC's Virtual Tech Forum scheduled for November.

 

BANK OF AFRICA joins the Board of Directors of Cluster EnR, a transition
accelerator and non-profit organisation, which brings together the entire
renewable energy sector for the purpose of developing a competitive industrial
sector capable of meeting national strategic goals and supporting green
entrepreneurship.

 

Partnership agreement signed with the EBRD in social and green bonds and a
round table organised on the theme of Positive Impact Finance in Africa. The
Bank's expertise in trade finance and its commitment to sustainable finance
was again recognised in 2021.

 

 

BMCE BANK FOUNDATION REAFFIRMS ITS COMMITMENT TO SOCIAL ISSUES

 

Further tribute paid to Dr Leïla MEZIAN BENJELLOUN, BMCE Bank Foundation's
Chair, by the Bouabate Fez Association, with the former being awarded the Fez
Gate Trophy and the title of 'Woman of the Year' in the Social Action
category.

 

16 pre-school classrooms built and equipped in state schools in partnership
with the Ministry of National Education ahead of the start of the 2022-23
academic year with 5 Medersat.Com network schools also renovated and
refurbished.

 

6 new classrooms built and equipped by the BOA Foundation in the Yama Tahoua
schools district in Niger.

 

Success for 390 or 79% of Medersat.com network school pupils from the 11(th)
cohort sitting the high school diploma exam, including 244 girls (62.5% of
female candidates), with 59% receiving a commendation, 28 of whom earning the
highest distinction.

 

Participated in the Casablanca-Settat regional conferences organised by
Casablanca's Hassan II University to discuss the ESRI PACTE 2030, a national
plan for accelerating the transformation of the ecosystem of higher education,
scientific research and innovation, which also enabled the Bank to share its
experience and the Foundation's commitment to the education sector and to
environmental causes.

 

 

AWARDS AND DISTINCTIONS

 

ISO 37001 certification of BANK OF AFRICA's anti-bribery management system
successfully renewed following a comprehensive audit by EuroCompliance, an
accredited certification firm.

 

BMCE Capital Gestion sees its services commitments and ISO 9001:2015
certifications successfully renewed following an external audit by Bureau
Veritas Morocco.

 

BMCE Capital Gestion successfully complying with the ISAE 3402 Type II
Standard published by the International Auditing and Assurance Standards Board
(IAASB) following an audit by Mazars.

 

BMCE Capital Solutions' securities operation obtains ISAE 3402 Type II
certification, attesting to the reliability and quality of BMCE Capital
Solutions' internal control system.

 

BANK OF AFRICA named Most Active Issuing Bank in Morocco in 2021 by the EBRD
in recognition of the productive partnership forged between the two
institutions in foreign trade financing and BANK OF AFRICA's ongoing efforts
at offering its customers appropriate short-term foreign currency financing.

 

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.

 

Gender Diversity Corporate Charter signed to mark International Women's Day,
underlining the Bank's commitment to joining the African network for
diversity.

 

BANK OF AFRICA receives the award of 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%.

 

Eurafric Information, the Group's IT subsidiary, named 'Top Employer' for the
3(rd) consecutive year by Top Employers Institute, a prestigious international
organisation.

 

Eurafric Information officially approved as an Electronic Certification
Service Provider by the General Directorate for Information Systems Security
(DGSSI), which reports to the National Defence Administration.

 

Eurafric Information receives the European Identity and Cloud (EIC) 2022 award
in the Identity Fabrics & IDaaS category from KuppingerCole Analysts AG, a
consulting firm.

 

 

PROFILE

 

15,000 EMPLOYEES

 

32        COUNTRIES

 

2,000   POINTS OF SALE

 

6.6       MILLION CUSTOMERS

 

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
COMPANY

AT 30 JUNE 2022 BY GEOGRAPHICAL REGION

 

MOROCCO • 54%

SUB-SAHARAN AFRICA • 38%

EUROPE • 8%

RATINGS

 

MOODY'S

BA1,

STABLE OUTLOOK

 

Fitch Ratings

BB,

STABLE OUTLOOK

 

V.E

Non-financial rating

A+

 

 

BANK OF AFRICA is one of Africa's main pan-African financial groups. With an
extensive portfolio of brands and subsidiaries, BANK OF AFRICA is a universal
banking group with 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.

 

 

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

 

 

 

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