REG - Bank of Africa - Half-year Report

Bank of Africa SAAnnouncement

30/09/2024 09:30

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RNS Number : 2259G  Bank of Africa  30 September 2024

ir-bankofafrica.ma

 
       BANK OF AFRICA

 
                        BMCE GROUP

 

HALF-YEAR RESULTS

 30 JUNE 2024

 

ROBUST PERFORMANCE

IN FIRST HALF 2024

 

 

BANK OF AFRICA - BMCE Group's Board of Directors, chaired by Mr Othman
BENJELLOUN, met Friday 27 September 2024 at the Bank's head office in
Casablanca. It reviewed the business activity of the Bank and of the Group for
first half 2024 and drew up the financial statements for the period in
question.

 

The Board paid a heartfelt tribute to the memory of the late Doctor Leila
MEZIAN BENJELLOUN, BMCE Bank Foundation's Chair, for her tireless commitment
and exceptional contribution, throughout her life, to promoting art and
culture, preserving this country's tangible and intangible heritage,
protecting the environment and enabling children in disadvantaged rural areas
in Morocco and elsewhere in Africa to have access to education.

 

The first half 2024 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

 

+37%

June 2023: 1 414

June 2024: 1 942

 

Double-digit growth (+37%) in net income attributable to shareholders of the
parent company to MAD 1.9 billion at 30 June 2024.

 

NET BANKING INCOME

 

+14%

June 2023: 8 377

June 2024: 9 572

 

Consolidated net banking income rose by +14% to MAD 9.6 billion at 30 June
2024 versus MAD 8.4 billion at 30 June 2023.

 

CUSTOMER LOANS

 

+1.2%

December 2023: 212 196

June 2024: 214 850

 

Consolidated customer loans, including resales, increased by +1.2% to MAD 215
billion.

 

CUSTOMER DEPOSITS

 

+2.2%

December 2023: 238 681

June 2024: 243 915

 

Consolidated customer deposits, including repos, grew by +2.2% to MAD 243.9
billion versus MAD 238.7 billion at 31 December 2023, underlining the Group's
strong business performance.

 

 

PARENT BUSINESS ACTIVITY (MAD MILLIONS)

 

NET INCOME

 

+17%

June 2023: 1 201

June 2024: 1 400

 

BANK OF AFRICA SA's net income increased by +17% year-on-year to MAD 1.4
billion at 30 June 2024.

 

NET BANKING INCOME

 

+15%

June 2023: 3 953

June 2024: 4 538

 

Double-digit growth in income from domestic banking operations in first half
2024 with parent net banking income up +15% to MAD 4.5 billion.

 

CUSTOMER LOANS

 

+2.4%

December 2023: 134 038

June 2024: 137 273

 

BANK OF AFRICA SA's customer loans, including resales, rose by +2.4% to MAD
137 billion at 30 June 2024.

 

CUSTOMER DEPOSITS

 

+1.4%

December 2023: 152 215

June 2024: 154 345

 

Customer deposits at parent level, including resales, increased by +1.4% to
MAD 154 billion at 30 June 2024. Non-interest-bearing deposits grew by +4% to
MAD 112 billion.

 

 

BANK OF AFRICA's Board of Directors paid tribute to the efforts of its human
capital for its determination to ensure that our pan-African Group continues
to deliver sustainable and solid growth in the countries and regions in which
it has operations. The Board would also like to thank its shareholders,
partners and customers for their ongoing confidence.

 

 

SOLID PERFORMANCE IN MOROCCO AND INTERNATIONALLY

 

BANK OF AFRICA GROUP

 

Substantial increase (+37%) in the Group's earnings with net income
attributable to shareholders of the parent company reaching MAD 1.9 billion at
30 June 2024 versus MAD 1.4 billion at 30 June 2023.

 

Consolidated net banking income rose by +14% to MAD 9.6 billion at 30 June
2024, driven by an increase in income from market operations as well as a
strong performance by the core business - net interest income and fee income.

 

Improvement in operational efficiency at Group level with growth in expenses
contained at +2%, resulting in a cost-to-income ratio of 43.6% at 30 June
2024.

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

AT 30 JUNE 2024 BY GEOGRAPHICAL REGION

 

MOROCCO • 52%

SUB-SAHARAN AFRICA • 42%

EUROPE • 6%

 

Consolidated customer loans, including resales, rose by +1.2% to MAD 215
billion at 30 June 2024.

 

Consolidated customer deposits, including repos, grew by +2.2% to MAD 244
billion at 30 June 2024 versus MAD 238 billion at 31 December 2023.

 

The consolidated cost of risk increased by +19% to MAD 1.8 billion.

 

Improvement in the coverage ratio to 69.1% at 30 June 2024 versus 67.6% at 31
December 2023.

 

Shareholders' equity bolstered after issuing a MAD 1 billion perpetual
subordinated bond with loss-absorption and coupon payment cancellation
mechanism.

 

BANK OF AFRICA SA

 

Significant growth (+17%) in the Bank's net income to MAD 1.4 billion.

 

Net banking income rose by +15% to MAD 4.5 billion, driven by net interest
income and fee income, up +6% respectively, in addition to growth in income
from market operations.

 

Growth in the Bank's general operating expenses well-contained at +2% to MAD
1.8 billion.

 

NET BANKING INCOME

AT 30 JUNE 2024 BY BUSINESS LINE

 

NET INTEREST INCOME • 50%

FEE INCOME • 14%

INCOME FROM MARKET OPERATIONS • 24%

MISCELLANEOUS • 11%

 

Deposit growth in the Moroccan business of +1.4% to MAD 154 billion with loans
up +2.4% to MAD 137 billion.

 

Conservative risk strategy adopted with the Bank's cost of risk up +54.1% to
MAD 879 million at 30 June 2024, including provisions write-backs totalling
MAD 205 million, up sharply (+44%).

 

Improvement in the coverage ratio to 63% in first half 2024 versus 62.2% at 31
December 2023.

 

BOA AFRIQUE

 

BOA Afrique's net banking income rose by +6% to EUR 388 million at 30 June
2024, driven by an improvement in net interest income.

 

BOA Afrique's general expenses fell by -0.5% to EUR 176 million, resulting in
a cost-to-income ratio of 45.5% at 30 June 2024.

 

Improvement in BOA Afrique's cost of risk in first half 2024, down -18% to EUR
28 million.

 

Significant growth (+24%) in BOA Afrique's net income attributable to
shareholders of the parent company to EUR 102 million at 30 June 2024.

 

Strong performance by BOA Afrique's business portfolio with loans up +1% and
deposits +6% ahead.

 

Capital bolstered at BANK OF AFRICA Group's WAEMU-based subsidiaries as part
of an overall strategy to bolster capital at subsidiary level to be able to
meet customers' growing funding needs.

 

 

AWARDS AND CERTIFICATIONS

 

Quadruple award for BANK OF AFRICA - 'Africa's Best Bank for SMEs', 'Morocco's
Best Bank for SMEs', 'Morocco's Best Bank for ESG' and 'Morocco's Best Digital
Bank' for 2023 - at the Euromoney Awards for Excellence.

 

BANK OF AFRICA named 'Most Admired Moroccan Financial Brand' at the 5(th)
'Brand Africa 100 - Morocco's Best Brands' event organised by Brand Africa 100
and Integrate Consulting.

 

BANK OF AFRICA recognised as the 'Most Active Partner Bank in 2023' by the
European Bank for Reconstruction and Development (EBRD) in the context of the
latter's Trade Facilitation Programme, aimed at boosting trade.

 

BANK OF AFRICA presented with the Best Sustainable Development Report within
the Financial Sector award by the Casablanca Stock Exchange for the 3(rd)
consecutive year based on the new international standards for sustainability
reporting.

 

BANK OF AFRICA awarded Payment Card Industry Data Security Standard
certification (PCI DSS) which sets high information security standards,
underlining the Bank's rigorous approach to data security for payment card
transactions.

 

'Professional Training Award' presented to the BANK OF AFRICA Academy at the
HR Awards 2024, held as an adjunct to 'Salon Master Plus', highlighting the
Bank's excellence in human resources management and innovation.

 

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.

 

RATINGS

 

MOODY'S

BA1,

STABLE OUTLOOK

 

V.E

Non-financial rating

A+

 

Fitch Ratings

BB,

STABLE OUTLOOK

 

 

 

THE GROUP'S SERVICE OFFERING BOLSTERED AND DIVERSIFIED

 

BANK OF AFRICA has launched its new Dima Kayn L'hal brand platform, focusing
on proximity, expertise and enhanced customer experience while offering a
broad portfolio of innovative products and services.

 

New version of the www.agencedirecte.ma (http://www.agencedirecte.ma) online
account opening platform launched, with a more user-friendly interface and
customer experience as well as improved website visibility, now available in 7
languages including Spanish, Italian, Dutch and German, in addition to Arabic,
French and English.

 

BMCE Direct further enhanced with a new bilingual version, a full digital
subscription enabling customers to open a passbook savings account and to
subscribe for a payment card, a secure messaging service between customers and
their account manager, the ability to consult miles collected via the
Pay&Fly card, a dedicated section for Moroccan customers living abroad and
simplified online access to the Crédit Habitat application process.

 

Long-term strategic partnership entered into in July 2024 between BANK OF
AFRICA and Mastercard to accelerate the development of innovative payment
solutions and promote financial inclusion in Morocco.

 

BANK OF AFRICA participating in the national Direct Aid housing support scheme
2024-2028 to support citizens by offering them sufficient additional funding
in addition to direct aid in the form of housing support.

 

Strategic partnership entered into in August 2024 between Damane Cash and Bank
Al Karam, BANK OF AFRICA Group's payment institution and participatory bank,
aimed at pooling and facilitating access to a variety of financial products,
thereby providing customers in the country's most remote regions with
unprecedented accessibility, underlining the Group's commitment to financial
inclusion.

 

 

SUPPORTING AND FACILITATING INVESTMENT IN MOROCCO AND SUB-SAHARAN AFRICA

 

Multilateral partnership bolstered between BANK OF AFRICA and the European
Bank for Reconstruction and Development (EBRD) with the latter extending an
additional EUR 10 million credit facility under the Green Value Chain
programme for projects which improve businesses' environmental footprint.

 

Memorandum of Understanding signed between BANK OF AFRICA and Saudi National
Bank, Saudi Arabia's largest bank and a global pioneer in Islamic finance,
aimed at bolstering commercial cooperation and economic ties between Morocco
and Saudi Arabia and facilitating cross-border transactions and remittances
between the two countries.

 

INTELAKA programme's services range enhanced as part of the review of the
Integrated Business Support and Financing Programme (PIAFE), including
extending the loan repayment period to 12 years instead of 7 years and raising
the Tamwilcom funding commitment to 85% for women entrepreneurs and expatriate
Moroccans.

 

Tie-up between BANK OF AFRICA and the African Development Bank within the
framework of its Trade Finance Program through a UAD 50 million risk-sharing
programme and a EUR 20 million trade finance credit line.

 

Regional meetings launched on the theme of 'SMEs, boost investment with
CapAccess by BANK OF AFRICA'. The meetings aim to present the new Investment
Charter and engineer an investment recovery among SMEs as intended by this
national strategy.

 

Closure of the Entrepreneurship Club session for the Casablanca region with 11
Technopark entrepreneurs and about ten entrepreneurs from the Entrepreneurship
Observatory ecosystem participating.

 

Agreement signed between BOA Togo, Sunu Bank and the Togolese Ministry of
Agriculture, Livestock and Rural Development to promote agricultural projects
by facilitating farmers' access to credit on preferential terms.

 

3(rd) Moroccan Equity Summit organised by BMCE Capital, the Group's investment
banking arm, attracting nearly 40 domestic and international investors and
more than 28 listed companies from Morocco, Tunisia and the WAEMU region.

 

 

ACTIVELY COMMITTED TO SUSTAINABILITY AND SOCIAL AND COMMUNITY PROGRESS

 

IMPACT FINANCE

 

Process completed to account for greenhouse gas emissions generated directly
by BANK OF AFRICA and by its corporate loan portfolio. This initial analysis
covered 90% of the portfolio's total exposure by value, including exposure to
SMEs and Large Enterprises, in addition to that of the investment banking arm.
The preliminary results revealed that 63% of GHG emissions are attributable to
the SME portfolio. Similarly, the property and construction sector accounts
for 37% of emissions.

 

Integrated Annual Report 2023 reviewed by an Independent Third Party Expert
resulting in an Independent Third Party Expert opinion being issued. For the
first time, this report was prepared based on the requirements and best
practices recommended by the European Union's Corporate Sustainability
Reporting Directive (CSRD).

 

BMCE BANK FOUNDATION

 

BMCE Bank Foundation remains committed to education through its Medersat.com
programme, with 11,784 students benefiting during the 2023-2024 academic year.
A total of 34,400 pupils across the entire Medersat.com network have benefited
since the programme's launch, with a 98.6% pass rate.

 

Medersat.com programme's 13(th) academic year successfully completed, with the
cohort, 67.4% of whom are girls, achieving a high school diploma pass rate of
88%.

 

Educational robotics and artificial intelligence teaching extended to a
further 30 network schools, thereby bringing the total number of beneficiaries
of educational robotics teaching to 3,000 pupils.

 

A further two Medersat.com network schools awarded the 'Eco-School' label from
the Mohammed VI Foundation for Environmental Protection, taking the total
number of network schools awarded the label to 40. This programme recognises
establishments which have adopted healthy eco-friendly practices and
initiatives.

 

 

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

 

34,400

Children benefiting from Medersat.com network services, 50% of whom are girls

 

573

Teachers and educators, 52% of whom are women

 

10,300

Pupils benefiting from the cultural caravan

 

40

Schools awarded the 'Eco-School' label

 

3,000

Pupils benefiting from robotics teaching (across 50 schools)

 

1,836

Pupils learning Mandarin Chinese

 

17

Educational supervisors across the network i.e. 1 supervisor for 4 schools

 

3,718

High school graduates from Medersat.com network schools

 

 

 

 

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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