TIDMBOAA
RNS Number : 7965T
Bank of Africa
29 March 2021
ir-bankofafrica.ma
BANK OF AFRICA
BMCE GROUP
ANNUAL RESULTS
31 DECEMBER 2020
2020 PERFORMANCE RESILIENT DESPITE THE GLOBAL HEALTH
PANDEMIC
Bank Of Africa -BMCE Group's Board of Directors, chaired by Mr
Othman BENJELLOUN, met Friday 26 March 2021 at the Bank's head
office in Casablanca. It reviewed the business activity of the Bank
and of the Group for the financial year ended 31 December 2020 and
drew up the financial statements for the period in question.
The Board of Directors shall propose to the forthcoming Annual
General Meeting of Shareholders the appointment of two independent
Directors, Mr Mohamed Kabbaj and Mrs Nezha Lahrichi, in addition to
Mrs Myriam Bouazzaoui, a Director from the BANK OF AFRICA Group. At
the same time, the Annual General Meeting shall also acknowledge
the resignation of two foreign independent Directors, Mr Philipe De
Fontaine Vive and Mr Christian De Boissieu, to whom a warm and
sincere tribute was paid by the Chairman of the Board of Directors
and all the Directors.
The brochure containing the 2020 financial statements, prepared
under IAS/IFRS, and the notes to the financial statements, are
published on the website www.ir-bankofafrica.ma .
CONSOLIDATED BUSINESS ACTIVITY
(MAD MILLIONS)
NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
COMPANY
December 2019 1 922
December 2020
Excluding donation -29% 1 368
Including donation -62% 738
Net income attributable to shareholders of the parent company
fell by 62% to MAD 738 million; excluding the impact from the
donation, net income fell by 29%.
NET BANKING INCOME
December 2019 13 860
+1%
December 2020 14 002
Business activity resilient with consolidated net banking income
up by a modest 1% to MAD 14 billion at 31 December 2020, driven by
5% growth in net interest income and a 3% rise in income from
market operations.
LOANS
December 2019 186 646
+4%
December 2020 194 167
Strong commercial performance with 4% growth in outstanding
consolidated loans to MAD 194.2 billion versus MAD 186.6 billion at
31 December 2019.
DEPOSITS
December 2019 202 817
+2%
December 2020 207 087
Consolidated customer deposits also performing strongly,
registering growth of 2% to MAD 207.1 billion 2% at 31 December
2020 versus MAD 202.8 billion at 31 December 2019.
PARENT BUSINESS ACTIVITY
(MAD MILLIONS)
NET INCOME
December 2019 1 372
December 2020
Excluding donation -1% 1 354
Including donation -47% 724
Net income down by 47% after factoring in the impact from the
donation to the COVID-19 special fund but down by only 1% excluding
the donation.
NET BANKING INCOME
December 2019 6 477
-3%
December 2020 6 301
Net banking income at BANK OF AFRICA S.A. down 3% to MAD 6.3
billion at 31 December 2020 despite a 4% rise in net interest
income.
LOANS
December 2019 111 656
+4%
December 2020 116 542
4.4% increase in loans from Banking in Morocco to MAD 117
billion.
DEPOSITS
December 2019 128 486
+0.2%
December 2020 128 757
The Bank's customer deposits broadly unchanged (+0.2%) at MAD
129 billion at 31 December 2020.
FINANCIAL PERFORMANCE IMPACTED BY THE GLOBAL HEALTH PANDEMIC
Business activity resilient with consolidated net banking income
up by a modest 1% to MAD 14 billion at 31 December 2020, driven by
5% growth in net interest income and a 3% rise in income from
market operations.
Net income attributable to shareholders of the parent company
down by 62% to MAD 738 million and the Bank's net income down by
47% to MAD 724 million due to a combination of (i) a MAD 1 billion
overall contribution to the COVID-19 special fund (ii) a 57%
increase in the consolidated cost of risk to MAD 3.5 billion at 31
December 2020 and a 67% rise in the cost of risk at parent level to
MAD 1.5 billion at 31 December 2020 and (iii) weaker performance
from a number of the Group's businesses due the somewhat
challenging domestic and international operating environment caused
by the COVID-19 pandemic.
Ongoing pursuit of operational efficiency by the Bank, driven by
a strategy aimed at digitally transforming its business processes
and making further cost savings. As a result, general operating
expenses were held in check, down 6% at parent level, resulting in
a cost-to-income ratio of 54.5% at 31 December 2020 versus 56.3% at
31 December 2019, an improvement of 1.8 percentage points.
On a consolidated basis, the cost base was impacted by the
contribution to the COVID-19 special fund; excluding this donation,
the Group's general operating expenses fell by 3%.
Consolidated gross operating income, excluding the donation, up
7% to MAD 6,202 million at 31 December 2020.
Strong commercial performance with 4% growth in outstanding
consolidated loans to MAD 194.2 billion at 31 December 2019, driven
by a 4.4% increase in loans from Banking in Morocco to MAD 117
billion.
BANK OF AFRICA saw its share of the loan market improve by 20
basis points from 12.28% at 31 December 2019 to 12.48% at 31
December 2020.
Consolidated customer deposits also performing strongly, up 2%
to MAD 207.1 billion at 31 December 2020 versus MAD 202.8 billion
at 31 December 2019; at parent level, customer deposits broadly
unchanged (+0.2%) at MAD 129 billion at 31 December 2020.
STRONGLY COMMITTED AND FULLY MOBILISED IN SUPPORT OF THE
ECONOMY
Under Chairman Othman Benjelloun's leadership, BANK OF AFRICA
made a MAD 1 billion contribution to the COVID-19 pandemic
management fund established by His Majesty King Mohammed VI, an
initiative which reflects the Group's strong commitment to the
national cause during this period.
A series of measures adopted aimed at supporting the domestic
economy and helping to protect jobs, supporting businesses and
households encountering difficulties since the outbreak of the
pandemic.
Assistance and support for nearly 13,000 Moroccan small
businesses in the form of more than MAD 14 billion of funding since
the beginning of 2020 as a result of the pandemic.
Medium and long-term loan maturities extended and new products -
Crédit Relance, Damane Oxygène and Crédit Entrepreneurs Covid-19 -
launched
Partnership agreement signed with the European Bank for
Reconstruction and Development (EBRD) for a EUR 145 million finance
facility, the first of its kind in the forty or so countries in
which this multilateral financial institution has operations,
available within the framework of the EBRD's 'resilience
framework', in response to the global health crisis.
INITIATIVES PROMOTING ENTREPRENEURSHIP AND INVESTMENT
Renewed commitment from the Entrepreneurship Observatory, an
integrated ecosystem of around sixty public and private sector
partners, to support entrepreneurs by providing specialised
non-financial services.
A series of high-impact value-generating measures introduced,
including a website providing a wealth of financial and
non-financial information, bespoke and diploma-based training
courses with partner universities, as well as non-financial
services through mentoring modules and networking programmes.
Agreements signed with local authorities, calls for expression
of interest initiated in support of small businesses and
cooperatives and the Blue Space incubator network rolled-out.
DIGITAL BANKING ENHANCED
Digital banking development accelerated by (i) improving
customer experience across all distribution channels whilst
developing new income sources, (ii) BANK OF AFRICA underlining its
growing reputation as a leading player in digital banking and
innovation, (iii) digitising front-to-back business processes aimed
at improving operational efficiency.
New scalable remote banking services rolled out aimed at
enhancing and offering new functionality. Practical and secure
remote banking solutions enabling customers to carry out their
banking transactions quickly and easily with a number of
transactions free of charge.
Crédit Habitat online portal launched - www.credithabitat.ma. -
an online mortgage subscription platform:
1(st) bank to provide customer service via WhatsApp, a new mode
of customer interaction, making it easier to access information and
provide an instant response to customer requests.
Improved customer experience in the latest version of BMCE
Direct , offering a more user-friendly approach and additional
services.
BK Financial Bot launched by BMCE Capital, the first specialised
investment banking chatbot in the sector.
Subscription-free access to all BMCE Capital's digital platforms
to encourage use of digital channels.
Two remote banking services launched by BTI Bank, BTI Connect
for retail banking customers and BTI Business Connect for
businesses, enabling customers to carry out their most frequent
transactions remotely.
NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
COMPANY
AT 31 DECEMBER 2020 BY GEOGRAPHICAL REGION
(EXCLUDING DONATION)
MOROCCO -- 47%
SUB-SAHARAN AFRICA -- 44%
EUROPE -- 9%
A SOCIALLY RESPONSIBLE BANK
Heavily committed to protecting the environment and to social
responsibility. A commitment lasting more than 25 years via BMCE
Bank Foundation, which continues to innovate and multiply the
number of programmes it runs, promoting education and the
environment and supporting African start-ups.
Dr Leïla Mezian-Benjelloun awarded the Officer medal of France's
Légion d'honneur and ICESCO's African-ness Award, as well as being
appointed Honorary President of Teach for Morocco, an NGO.
A new Medersat.com school opened in Ketama, Al Hoceima Province
and a new school built in Djibouti.
Agreement signed between BMCE Bank Foundation and the Confucius
Institute of Tangier, enabling the Medersat.com school in Bougdour
to benefit from Mandarin Chinese teaching.
Partnership agreements entered into between BMCE Bank Foundation
and the Paris Education Authority and the French Institute of
Morocco aimed at (i) enhancing the quality of teaching across the
Medersat.com network, (ii) supporting the training of supervisors,
(iii) improving the French language skills of teachers in BMCE Bank
Foundation schools, and (iv) promoting staff enrolment in distance
learning training courses.
Leadership status in sustainable development, as illustrated by
the Bank signing and adhering to flagship international
undertakings, by a CSR policy overseen by the Bank's senior
management, and by formally adopting ethical and environmental
undertakings in a CSR Charter, which steers the Group's sustainable
growth model and its practices.
Partnership agreement signed with International Finance
Corporation aimed at bolstering the Group's climate finance
capabilities.
Climate change aspect incorporated within the Group's Risk
Policy.
ISO 14001 certification for environmental management
successfully renewed and OHSAS 18001 certification for occupational
health and safety risk management maintained.
COVID-19 prevention Safeguard label awarded by Veritas
Group.
A new 'Green Value Chain' agreement signed with the European
Bank for Reconstruction and Development (EBRD) regarding a EUR 10
million sustainable financing line aimed at enhancing the
competitiveness of small- and medium-sized enterprises and at
promoting investment in Morocco's green economy.
AWARDS AND DISTINCTIONS
BANK OF AFRICA named 'Best Bank in Morocco 2021' by Global
Finance, a prestigious American magazine.
Wins the 'Best Customer Service Award Morocco 2021' in the
Banking category for the fourth consecutive year, reflecting the
strong commitment by each of the Bank's businesses to its existing
and prospective customers and to improving the quality of the
service provided.
BANK OF AFRICA named in the top 2% of all global companies rated
by Vigeo Eiris (4,880 in total) and 1(st) out of 90 in the banking
sector - 'Retail & Specialised Banks - Emerging Markets'
category - following the first corporate sustainability rating to
be undertaken in Morocco, thereby underlining its leadership status
in CSR.
BANK OF AFRICA named 'Top Performer CSR' in 2020 for the 7(th)
consecutive year by Vigeo Eiris, topping the 'Retail &
Specialised Banks - Emerging Markets' rankings in the 6 domains of
environmental and social performance and governance.
BMCE Capital Conseil an award-winner in the 'Single Deal Local
Advisor' category of the 'Private Equity Africa 2020 Awards',
earning recognition for its support for one of Morocco's leading
private healthcare providers in a flagship transaction, thereby
underlining its reputation as a leading financial advisor to
companies and institutions for their strategic deals.
Eurafric Information, BANK OF AFRICA Group's IT subsidiary,
named 'Top Employer' for the 2(nd) consecutive year by the Top
Employers Institute, a prestigious international organisation, in
recognition of its ongoing efforts to develop a robust, consistent
and employee-focused human resources strategy, thereby underlining
its reputation as a highly attractive employer.
RATINGS
MOODY'S BA1, NEGATIVE OUTLOOK
Fitch Ratings BB, STABLE OUTLOOK
V.E A1+, Extra-Financial Rating
PROFILE
15 000+ EMPLOYEES
1 800+ POINTS OF SALE
32 COUNTRIES
6+ MILLION CUSTOMERS
BANK OF AFRICA is one of Africa's main pan-African financial
groups. With an extensive portfolio of brands and subsidiaries,
BANK OF AFRICA has adopted a universal banking business model
comprising 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
522 462 806
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