BMED.L Regulatory News (BMED)

BMCE Bank Group

Press Release

Strong Growth in 2010 Results

The Board of Directors of BMCE Bank, chaired by Mr. Othman BENJELLOUN, was held on Friday March 25, 2011, at the Bank's Head Office in Casablanca. It examined the Group's activities during the fiscal year 2010 and closed the related accounts.

The Board will propose to the AGM the payment of a dividend of 3 dirhams per share.

The 2010 IAS/IFRS financial statements are available on the bank's website www.bmcebank.ma.

·; Net Income Group Share

+113%

819 mMAD

(98 m$)

·; Net Income -Group

+74%

1 425 mMAD

(171 m$)

·; Gross Operating Income

+30%

2 898 mMAD

 (347 m$)

·; Net Banking Income

+18%

7 552 mMAD

(905 m$)

·; Shareholder's Equity Group Share

+102%

12 390 mMAD

(1.5 bn $)

·; Total Assets

+11%

187 188 mMAD

(22.4 billion $)

·; Significant increase in earnings

- Net income Group: +74% to 1.4 billion MAD (171 m$)

- Net income Group share: +113% to 819 mMAD (98 m$)

- Net income -Domestic Activity: +30% to 660 mMAD (79 m$)

·; Strengthening of the capital base

- Shareholder's Equity Group share doubled to 12.4 billion MAD (1.5 bn $)

- Capital Adequacy ratio of 12.6%

·; Branch network expansion in Morocco

- More than 380 branches opened since the start of the branch expansion program in 2005, including 51 in 2010

·; A development strategy based on three pillars

- Improvement of the commercial and operational efficiency in Morocco

- Pursuit of the business growth in Sub-Saharan Africa

- Restructuring of the activities in Europe

2010: YEAR OF SOLID PERFORMANCES

·; Substantial increase of +113% in Net Income Group Share to 819 mMAD (98 m$), driven by the very positive contribution of the Bank and its subsidiaries both in Morocco and in Sub-Saharan Africa.

·; Like for like Net Income Group Share, adjusted for the increase of the Bank's equity stakes in Bank of Africa and Maghrebail to 55.8% and 51%, respectively, up +95% to 755 mMAD (90.5 m$).

·; +30% rise in the Gross Operating Income, a key measure of the operating performance, to reach 2.9 billion MAD (347 m$).

·; +18% growth in Consolidated Net Banking Income to 7.6 billion MAD (905 m$), thanks to the good performance of the Core business, as shown by an increase of +14% in net interest income, +11% in net fee income, and +52% in income from market transactions.

·; Improvement in the cost to income ratiofrom 65.3% in 2009 to 61.6% in 2010, down -3.7 percentage points -%p compared to last year.

·; Strengthening of the capital base, as Shareholders' Equity Group Share doubled to reach 12.4 billion MAD (1.5 bn $), thanks to the support of shareholders, including employees, who reiterated their trust in the Group's development prospects.

·; Good commercial dynamics, as illustrated through a +15% growth in customer loans to 107 billion MAD (12.9 bn $) and nearly +8% in customer deposits to 132 billion MAD (15.8 bn $).

·; Increase of +7.5% in Net Banking Income to 3.9 billion MAD (467 m$), due to the volume effect in loans and the improvement in the net interest spread.

·; Sustained growth of +10.4% in the like for like Net Banking Income, adjusted for treasury shares and equity mutual funds.

·; Ongoing efforts in terms of cost control, with a contained growth at 6.3% in 2010 versus 6.5% in 2009, resulted in a decline in the cost to income ratio by -0.7%p to 62.9%.

·; Rise of +14% in gross operating income to 1.3 billion MAD (155.7 m$).

·; Increase of +30% in net earnings -domestic activityfrom 507 mMAD (60.7 m$) to 660 mMAD (79 m$). For the aggregated activity, the net income stood at 522 mMAD (66 m$), up about +4%, impacted by the decrease in the performance of BMCE Bank Offshore and the provisions on the London based subsidiary borne by the Paris Main branch.

·; Slight growth in customer deposits by +1% to 87.4 billion MAD (10.5 bn $), hampered by a -30% decrease in current accounts, under the effect of a number of exceptional operations occurred in 2009, and relating to some corporations, inducing a slight drop in the market share from 14.5% in 2009 to 14.2% in 2010.

·; +8.8% increase in Customer loans to 97.3 billion MAD (11.6 bn $), bringing market share up 16 basis points -bp to 12.97%, due to the good performance of the different business segments.

·; Decline of -39 bp in NPL ratio -Domestic Activityto 4.6%, below the average of the banking industry (5.1%)- Moroccan Banking Association, 2010 statistics-

·; Improvement in the net cost of risk to 404.5 MDH (48.5 m$), down -32.4% compared to last year.

·; Increase in non performing loans containedat +0.3% to 3 666 mMAD (439.2 m$) in 2010.

·; Sustained reinforcement of the risk management system through:

- Implementation of a system of internal rating and stress testing, in compliance with the Basel II requirements;

- Continuation of the automation process of the operational risk management and generalization of a dedicated tool at the Group's subsidiaries.

·; Profitable growth strategy in Morocco, supported by a transformation program, aiming at simultaneously increasing the revenue stream and reducing expenses

·; Gains in terms of efficiency and productivity to achieve through:

- Optimization of the cost structure thanks to a pool of cost savings

- Improvement of the commercial efficiency through a simplified organization model structured by region;

- Centralization of back offices and acceleration of the automation process

2010 Consolidated Net Banking Income by business line

Consolidation List

Positive growth in the different business lines of bmce bank group

Bank for Individuals & Professionals: good commercial base

·; Opening of 50 branches dedicated to private individuals and professionals customers, in addition to one business center, bringing the size of the network up to 613 branches

·; Consolidation of the Bank's presence on the electronic banking:(i) Increase of +9% in bank cards, (ii) leadership position on the international bank cards segment, with a 55.7% market share

·; Growing development of the bancassurance, with the sale of +63 000 new contracts, up +11.4% compared to 2009, and a +6.4% increase in fees generated from this business activity

·; +1%p gain in consumer loans market share to 19.45%, moving up to the second position on this market segment.

·; Launch of the first comprehensive range of products dedicated to professionals clientele, reflecting the bank's aspiration toenhance its position in this market.

The Enterprise Bank: satisfactory achievements

·; Rise of +12% in current accounts held in the Bank through its business centers dedicated to enterprises and SMEs to attain more than 4.6 billion MAD (551 m$).

·; Increase of +13% in investment loans granted by the business centers to about 9 billion MAD (1 bn $), reflecting the bank's support to the development of SMEs.

·; Sustained commitment to the financing of large corporations, as shown through a +12% growth in corporate loans to 32.6 billion MAD (3.9 bn $).

·; Renewal of the ISO Certification for "ProjectFinance'', BMCE being the first bank in Morocco to be certified on this activity in 2006.

Investment Banking: strong dynamics in the activities in a favorable market environment

·; A six-fold increase in the contribution of investment banking activities to the net income group share, from 11 mMAD (1.3 m$) in 2009 to 68 mMAD (8.1 m$) in 2010.

·; BMCE Capital Bourse's stock market volume share up +13.2%p to 29%, to become a co-leader.

·; Upsurge in BMCE Capital Gestion's assets under management by more than +33% to reach 30.4 billion MAD (3.6 bn $) versus an average growth of 16.7% for the industry.

·; Strong innovation capacity of BMCE Capital Markets to meet customer satisfaction, as evidenced by the launch of new structured products, Fx derivatives, and stock options.

·; Considerable rise in BMCE Capital Titres' assets under custody to nearly 29%, amounting to 191 billion MAD (22.9 bn $).

Specialized financial subsidiaries: reinforced contribution to the group's earnings

·; Significant increase in the contribution of specialized financial services (leasing, consumer credit, factoring and credit insurance) to Net Income Group Share, up +41.7% to 117 mMAD (14 m$).

MAGHREBAIL

·; +0.5%p gain in market share for MAGHREBAIL to 19.6% with a +11% increase in lease finance commitments to 7.2 billion MAD (863 m$) versus +8% for the industry.

·; Increase of +16% in Net Banking Income to about 216 mMAD (25.9 m$) and improvement in cost to income ratio by -2%p to 26.6%.

SALAFIN

·; Good business performance, with a gross operating income up +7% to 215 mMAD, despite a decrease in the sector's loans volume. ROE is maintained at 17%.

·; Pursuit in 2011 of the development of fee business-back office management and debt collection for third parties- complementary to to the traditional financing activity.

MAROC FACTORING

·; Bounce back in net income to 10 mMAD (1.2 m$) in 2010 versus a -27.4 mMAD (-3.3 m$) loss in 2009.

·; Launch in partnership with Maroc Factoring of BMCE e-confirming, a new service guaranteeing a full payment of suppliers' invoices, through two forms: immediate payment or payment due.

African Subsidiaries: 25% of net income group share

Bank of africa

·; Reinforcement to 55.8% of BMCE Bank's equity stake in Bank of Africa, the Group's spearhead in sub-Saharan Africa.

·; Expansion of the geographic reach of Bank of Africa to 14 countries on the continent, following the creation of BOA Democratic Republic of Congo, BOA Togo and the acquisition of Banque Indosuez Mer Rouge in Djibouti.

·; Diversification of Bank of Africa's activitiesthrough the creation of BOA France, a Paris based subsidiary specialized in money transfer, and BOA Asset Management.

·; Promising growth prospects of BOA Group, supported by:

- Strengthening of shareholder's equity thanks to a capital increase program planned for BOA Group and its subsidiaries for a total amount of 172 m€ over the 2010-2012 period;

- Expansion projects underway in several African countries;

- Appointment of a BMCE Bank Director and Delegate General Manager as Chairman & CEO of Bank of Africa Group; a managerial transition that builds on the natural take over process of this Group

Bank of Africa Group, 55.8% owned by BMCE Bank, is one of the leading banking groups in Africa, with:

- A unique African experience

o continued development since about 30 years

- An extended network

o 14 commercial banks

o 9 specialized subsidiaries and 1 Paris based finance company

o More than 250 branches

o More than 3 000 employees

- Strategic shareholders and partners

o BMCE Bank, the majority reference shareholder

o Proparco

o IFC- The World Bank Group

o West African Development Bank

o The Belgian Investment Company for Developing Countries (BIO)

o The Entrepreneurial Development Bank of the Netherlands (FMO)

- 2 digit growth in the 2010 main activity indicators:

o Total Assets: +28% to 3.2 billion €

o Loans: +18% to 1.6 billion €

o Deposits: +33% to 2.6 billion €

o Net Banking Income: +24% to 202 million €

o Consolidated Net Income: +29% to 47 million €

BOA GROUP BANKING SUBSIDIARIES

As of December 31, 2010

(*) based in Djibouti, acquired by BOA in 2010

La Congolaise de banque

·; Pursuit of the commercial development, as shown through a positive growth in deposits and loans, up more than +21% to reach 299 M€ and 126 M€, respectively.

·; +14.4% growth in Net Banking Income to more than 21 million € and +58% in net earningsto 7.6 M€.

·; Strict risk management policy as illustrated through a decline in NPL ratio from 3% in 2009 to 2% in 2010.

La Banque de Developpement du mali

·; Significant increase of +33% in net income to 7.6 M€ for the year ended December 31, 2010.

·; Ambitious projects for a sustainable development:(i) development of new activities with the creation underway of a life insurance company and a money transfer company in Paris and (ii) extension of the network at national level, on the one hand, and at the regional level, on the other hand, with plans to open subsidiaries in several countries.

Reorganization of the European platform

bmce bank international plc

·; Restructuring of the European activities to fit the international market conditions and the development capacities of the Group abroad.

bmce bank international Madrid

·; Strong growth in Net Banking Income, up +21% to 8.1m€, driven especially by net fee income at the expense of a decreasing net interest income, induced by a voluntary rationing of credit, given the rise in the cost of risk in Spain.

·; +44% increase in net income to 3.3 m€ in a less favorable economic environment.

·; Control of cost of risk, with an NPL ratio standing at 0.45%, well below the average of the industry.

bmce bank Foundation

·; Modernization of pedagogical practicessupported by reinforced good governance rules.

·; Expansion of the MedersatCom network with the creation of 5 new schools.

·; Restoration of the Ait Hammou Kasbah in Zagora where a Medersat.com school is implemented.

·; Sealing of a partnership with the Congo Assistance Foundation.

Sustainable Finance

·; Reinforcement in the implementation of the Social & Environmental Management System, aiming at the assistance of clients in identifying and evaluating social and environmental risks inherent to their investment projects.

·; Ongoing set up of an Environmental Management System to monitor the direct and direct impacts of the bank's activities.

·; BMCE Bank shortlisted as one of the top 3 nominees for the FT Sustainable Banking Awards 2010 in the Emerging Markets category (Africa & Middle East Region), organized by the British magazine Financial Times, in partnership with IFC- The World Bank Group.

Contact:

Investor Relations

BMCE Bank

Tel: +212-5-22-49-80-03

Fax: +212-5-22-26-49-65

Email: melaoufi@bmcebank.co.ma

communicationfinanciere@bmcebank.co.ma