10 April 2007
The financial reporting season for 2006 is in full swing, with major Moroccan banks announcing considerable profits.
"Three banks now control 64% of the market, against 53% three years ago," Abdellatif Jouahri, the governor of Bank al-Maghrib, the central bank, told OBG. "Thus we are witnessing the emergence of large financial structures with an increased financial mobilisation capacity and the means to support large projects on a national scale."
Attijariwafa Bank kicked off the reporting season, publishing consolidated net banking results that rose by 19.9% year-on-year, to reach Dh6.76bn. Although competition between the larger banks has increased, resulting in the limitation of commercial interest rate differentials, Attijariwafa managed to register a 6.3% rise in its interest margins, reaching Dh4.28bn.
Meanwhile, margins on commissions progressed by 46.9%, while renting and lease-credit operations rose by 45.8%. The largest increase was undoubtedly in market operations, which grew by 87.1%. The largest bank in terms of deposits, Attijariwafa holds a market share in deposits of 27.53%, or Dh117.1bn.
The second-largest bank in the kingdom, Groupe Banques Populaires (GBP), also announced healthy growth rates on March 29, with its consolidated net banking result up 5.6% to Dh6.1bn and a 35.7% increase - the highest rise in the market - in its net profit, standing at Dh2.3bn. Client deposits rose by 13.9% and margins on commissions by 19.3%.
GBP holds the largest share of consumer loans, with 41.9% of the market.
"We have proved that a socially responsible and cooperative bank can also be a very profitable bank, meeting the needs of all types of clients," said Noureddine Omary, the president of GBP.
Banque Marocaine du Commerce Exterieur (BMCE) recorded a 16.3% increase in its consolidated net banking result, reaching Dh3.61bn. Its client credits progressed by 23.5% to reach Dh46bn, with real estate credits rising 50%.
Real estate loans accounted for the main increase for a majority of banks, reflecting the strength and sustained growth in the real estate sector at large.
Crdit Immobilier et Hotelier (CIH), recorded a profit for the first time in 12 years in the first quarter of 2006, turning a Dh48m deficit in 2005 into a Dh388m profit for 2006. All indicators rose for CIH, bearing the fruits of restructuring efforts under its CEO Khalid Alioua. Its consolidated net banking result rose from Dh914m to Dh1.15bn.
Banks affiliated with international groups have not been able to conduct as many market operations as local banks, given that policies for operations involving local treasury bonds are fixed from their international headquarters. Nonetheless their 2006 results proved equally satisfactory.
Crdit du Maroc (CDM) registered an increase from Dh65m to Dh84m in 2006 in terms of results of market operations. Interest margins rose from Dh930m to over Dh1bn, while margins on commissions stayed relatively stable at Dh214m.
Consolidated net banking profits for CDM nonetheless registered a healthy rise to Dh1.3bn in 2006, from Dh1.2bn in 2005 and net profit stood at Dh317m , an increase of approximately 25%.
Socit Gnrale Marocaine de Banques (SGMB) recorded a rise in consolidated net banking result from Dh1.8bn to Dh2.2bn, while client deposits rose from Dh27bn to Dh32bn. In all, consolidated net profit rose by a very healthy 15.1% to reach Dh536m.
"In terms of net banking profit and despite a significant tightening of intermediation margins, the SGMB group developped by 9.71% to reach Dh2.2bn, Jerome Guiraud, the CEO of SGMB, told OBG.
Meanwhile, the Banque Marocaine pour le Commerce et l'Industrie (BMCI) boosted its consolidated net banking result from Dh1.7bn to Dh1.8bn, while net profit rose from Dh492m to Dh535m in 2006. Interest margins rose from Dh1.4bn to Dh 1.5bn and margins on commissions rose from Dh188m to Dh234m. However, results of market operations declined from Dh116m to Dh104m over the year.
Such strong performances by banks reveal their resilience in the face of increasing competition. With full implementation of the Basel II regulations looming in June, leading banks to reassess their risk management practices, such buoyant results should comfort shareholders and directors of banking institutions.
The financial reporting season for 2006 is in full swing, with major Moroccan banks announcing considerable profits.
"Three banks now control 64% of the market, against 53% three years ago," Abdellatif Jouahri, the governor of Bank al-Maghrib, the central bank, told OBG. "Thus we are witnessing the emergence of large financial structures with an increased financial mobilisation capacity and the means to support large projects on a national scale."
Attijariwafa Bank kicked off the reporting season, publishing consolidated net banking results that rose by 19.9% year-on-year, to reach Dh6.76bn. Although competition between the larger banks has increased, resulting in the limitation of commercial interest rate differentials, Attijariwafa managed to register a 6.3% rise in its interest margins, reaching Dh4.28bn.
Meanwhile, margins on commissions progressed by 46.9%, while renting and lease-credit operations rose by 45.8%. The largest increase was undoubtedly in market operations, which grew by 87.1%. The largest bank in terms of deposits, Attijariwafa holds a market share in deposits of 27.53%, or Dh117.1bn.
The second-largest bank in the kingdom, Groupe Banques Populaires (GBP), also announced healthy growth rates on March 29, with its consolidated net banking result up 5.6% to Dh6.1bn and a 35.7% increase - the highest rise in the market - in its net profit, standing at Dh2.3bn. Client deposits rose by 13.9% and margins on commissions by 19.3%.
GBP holds the largest share of consumer loans, with 41.9% of the market.
"We have proved that a socially responsible and cooperative bank can also be a very profitable bank, meeting the needs of all types of clients," said Noureddine Omary, the president of GBP.
Banque Marocaine du Commerce Exterieur (BMCE) recorded a 16.3% increase in its consolidated net banking result, reaching Dh3.61bn. Its client credits progressed by 23.5% to reach Dh46bn, with real estate credits rising 50%.
Real estate loans accounted for the main increase for a majority of banks, reflecting the strength and sustained growth in the real estate sector at large.
Crdit Immobilier et Hotelier (CIH), recorded a profit for the first time in 12 years in the first quarter of 2006, turning a Dh48m deficit in 2005 into a Dh388m profit for 2006. All indicators rose for CIH, bearing the fruits of restructuring efforts under its CEO Khalid Alioua. Its consolidated net banking result rose from Dh914m to Dh1.15bn.
Banks affiliated with international groups have not been able to conduct as many market operations as local banks, given that policies for operations involving local treasury bonds are fixed from their international headquarters. Nonetheless their 2006 results proved equally satisfactory.
Crdit du Maroc (CDM) registered an increase from Dh65m to Dh84m in 2006 in terms of results of market operations. Interest margins rose from Dh930m to over Dh1bn, while margins on commissions stayed relatively stable at Dh214m.
Consolidated net banking profits for CDM nonetheless registered a healthy rise to Dh1.3bn in 2006, from Dh1.2bn in 2005 and net profit stood at Dh317m , an increase of approximately 25%.
Socit Gnrale Marocaine de Banques (SGMB) recorded a rise in consolidated net banking result from Dh1.8bn to Dh2.2bn, while client deposits rose from Dh27bn to Dh32bn. In all, consolidated net profit rose by a very healthy 15.1% to reach Dh536m.
"In terms of net banking profit and despite a significant tightening of intermediation margins, the SGMB group developped by 9.71% to reach Dh2.2bn, Jerome Guiraud, the CEO of SGMB, told OBG.
Meanwhile, the Banque Marocaine pour le Commerce et l'Industrie (BMCI) boosted its consolidated net banking result from Dh1.7bn to Dh1.8bn, while net profit rose from Dh492m to Dh535m in 2006. Interest margins rose from Dh1.4bn to Dh 1.5bn and margins on commissions rose from Dh188m to Dh234m. However, results of market operations declined from Dh116m to Dh104m over the year.
Such strong performances by banks reveal their resilience in the face of increasing competition. With full implementation of the Basel II regulations looming in June, leading banks to reassess their risk management practices, such buoyant results should comfort shareholders and directors of banking institutions.
© Oxford Business Group 2007
