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
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
5th 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 10th consecutive year at the 16th 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 2nd
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 3rd 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 5th 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