27 Mar 2012 16:55
BMCE BANK FINANCIAL COMMUNICATION
BMCE Bank: Consolidation of a Group with Territorial and Continental Focus
The Board of Directors of BMCE Bank, chaired by Mr. Othman BENJELLOUN, was held on Friday March 23, 2012, at the Bank's Head Office in Casablanca. It examined the Group's activities during the fiscal year 2011 and closed the related accounts.
The Board will propose to the AGM the payment of a dividend of 3 dirhams per share.
The Board has endorsed the reinforcement of senior management with the appointment of Mr. Mohammed AGOUMI as a Delegate General Manager of the Bank, in charge of the Group's activities abroad.
The 2011 IAS/IFRS financial statements are available on the bank's website.
CONSOLIDATED ACTIVITY
As of December 31, 2011
Net Income Group Share +4%
MAD 850 m
EUR 77 m
Net banking income +8%
MAD 8 billion
EUR 733 m
Total Assets +11%
MAD 208 billion
EUR 18.7 billion
AGGREGATED ACTIVITY
As of December 31, 2011
Gross Operating Income +13%
MAD 1.3 billion
EUR 117 m
Customer Loans-Domestic Activity- +11%
MAD 88 billion
EUR 8 billion
Customer Deposits +7%
MAD 94 billion -EUR 8.5 billion
o Pursuit of a Multidimensional Transformation Process
- Organization of the branch network by local regions
- Convergence of the European activities for more synergies
- Automation of processes for more productivity and efficiency gains
o Consolidation of the continental dimension of BMCE Bank Group with a reinforced contribution of the African Subsidiaries in the Net Income Group Share
o Opening of the 1000th branch of the Group in Africa
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A year Under the Sign of TRANSFORMATION AND RATIONALIZATION
Positive Growth in earnings
Aggregated activity
o +13% increase in Gross Operating Income to MAD 1.3 bn -EUR 117 m- in a context of:
- A nearly 3% growth in the aggregated net banking income, driven by a +4.6% rise in net interest income, but hampered by the underperformance of market activities down -13%.
- +8% increase in general operating expenses due to payroll up +12.5% due to non recurring items. Cost control measures have already borne fruit as other operating expenses decreased by -0.7%.
o +4.4% growth in aggregated net earnings of BMCE Bank to about MAD 545 m -EUR 49 m- held back by a +30% increase in allowances net of reversals of MAD 462 m -EUR 41.6 m- for some business sectors. Excluding a general contingency reserve of MAD 160 m -EUR 14.4 m-, net earnings would grow by +35%.
o Good commercial performance as shown by a 0.3%p and 0.1%p gains in deposits and loans market shares, standing at 14.63% and 13.07% respectively.
Consolidated activity
o Consolidated total assets exceeding for the first time the MAD 200 bn, up +11% from MAD 187 bn -EUR 16.8 bn to MAD 208 bn -EUR 18.7 bn-
o +4% growth in Net Income Group Share to MAD 850 m -EUR 77 m- thanks to:
- +19% increase in the share of African based subsidiaries in the Group's earnings to 36%.
- +28% increase in the share of Specialized Financial Services in the Group's earnings to 18%.
- The significant improvement in the deficit of the European activities.
- … but constrained by the underperformance of the stock brokerage activities in a sluggish market with the nonrenewal of exceptional operations.
o +8% growth in Net Banking Income to more than MAD 8 bn -EUR 733 m- especially driven by African based subsidiaries , accounting for 41% of the Group's revenues in 2011 versus 35% in 2010, in line with the African development strategy of BMCE Bank.
o Cost of risk up +6.4% from MAD 819 m -EUR 73.7 m- to MAD 872 m- EUR 78.5 m
A bank in transformation
o Conduct of a transformation program in 2011 aimed at simplifying the business model, boosting commercial performance, and controlling risks and costs.
o First achievements of the transformation program:
- Integration of the territorial dimension in the commercial activity of the Bank with:
·; Successful launch of 5 territorial divisions of the branch network with encouraging first results.
·; The implementation of new commercial practices for more synergies between the retail and corporate branches.
- Staff redeployment for the optimization of back office processes and time saving for the commercial tasks within branches.
- Reduction in the process cost and securing transactions for a better risk monitoring.
To better absorb the transformation process, the Bank will keep a constant number of employees and slowdown the opening of branches.
2011 Net Income Group Share by Geographic Area:
- Morocco: 65%
- Sub-Saharan Africa: 36%
- Europe: -1%
BUSINESS LINES AT THE CUSTOMER SERVICE
Retail Bank: A reinforced Proximity Policy
o A branch network reorganized by territorial units to improve commercial efficiency by making the client closer to the decision center .
o A proven savings collection capacity as evidenced by a +7% increase in retail deposits with a stable market share at 14.8%.
o An innovation impulse in the banking card business segment as illustrated through the issue in Morocco of a new generation of international online payment cards, dubbed BMCE e-pay.
o Launch of BMCE Direct, a new electronic banking service as part of a multichannel strategy, allowing internet access to a wide range of services.
o A significant commercial performance in the professionals market segment as shown in a tenfold increase in the number of packages sold to this clientele.
Corporate Bank: Growing Business Indicators
o Increase in the business centers' deposits by +10% and loans by +13%.
o Rise in the large corporations' deposits by +16.2% to MAD 15.1 bn -EUR 1.4 bn- and loans by +9.6% to MAD 35.7 bn -EUR 3.2 bn-.
o Reinforced synergies with the Retail Bank as evidenced by a +21.6% increase in agreement mortgage loans.
o Pursuit of the development of project finance through the support provided to national priority industry programs, including solar and wind powers (environment and sustainable development), Emergence (industry services), Halieutis (fishing), Azur Extension (tourism).
Investment Bank: resilience in a difficult environment
o Reinforcement of BMCE Capital Market's position on money and debt markets, with a market share brought up to 28% thanks to its commercial strike force and differentiation strategy.
o Increase in BMCE Capital Gestion's assets under management to MAD 32 bn -nearly EUR 3 bn- by +5.3% versus +2.7% for the industry, inducing a 40 basis points gain in market share standing at about 14%.
o Decrease in BMCE Capital Titres' assets under custody to MAD 172 bn -EUR 15.5 bn- and in BMCE Capital Bourse's market share to 19.1% in a bearish market with lower trading volumes.
o "Best Broker" and "Best Asset Manager" awards granted to BMCE Capital Bourse and BMCE Capital Gestion, respectively, by the british Magazine Emeafinance.
Specialized Financial Services: Satisfactory Performance
MAGHREBAIL
o +6.1% increase in Maghrebail's new leases to 2.8 bn -EUR 252 m- overperforming its industry (+3.7%), inducing an improvement in its market share by +0.2%p to 19.8%, with a quasi stable net income at 80.4 m-EUR 7.2 m-.
SALAFIN
o +3% growth in Salafin's new gross loans to more than MAD 1 bn -EUR 102.6 m- against -6% decrease for the sector. Net income down -7% to MAD 93.1 m- EUR 8.4 m-.
o Extension of Salafin's fee business activities to include consumer the management of the consumer loans portfolio for third parties besides the debt collection management for third parties, as part of its revenue diversification strategy.
MAROC FACTORING
o +12% increase in Maroc Factoring's Net income from MAD 10 m to MAD 11.2 m -EUR 1 m-.
Rise of African based activities
BANK OF AFRICA
o Two digit growth in key consolidated indicators: (i) net banking income up +26% to more than EUR 252 m, (ii) gross operating income increased by +15.7% to EUR 104 m and (iii) net earnings up +23% to about EUR 58 m.
o Pursuit of the organic growth through the opening of some fifty branches bringing the size of the network up to more than 330 branches, covering some fifteen countries, across the continent.
LA CONGOLAISE DE BANQUE
o A sustained strong commercial momentum with loans and deposits increasing by +33% and +19% to EUR 168 m and EUR 356 m respectively and enriched banking cards offer by 4 new products, bring the customer uptake up from 52% to 65%.
o Solid base as evidenced by a +21% increase in both Net Banking Income and Net Earnings to EUR 25.7 m and EUR 9.2 m respectively and strengthening of shareholder's equity by +26.3% to about EUR 30 m.
Towards a Convergence in European Activities
o Ongoing overhaul of the European platform through cost control and business refocus on the traditional banking and finance activities.
BMCE BANK INTERNATIONAL MADRID
o Noteworthy financial performance amid an economic crisis in Spain with a +36% increase in its net banking income crossing for the first time the EUR 11 m cap and +10% growth in net earnings to EUR 3.6 m.
BMCE BANK INTERNATIONAL PLC
o First results of the restructuring of the London based subsidiary of BMCE Bank Group as the operating loss significantly brought down to EUR -4.7 m versus EUR -26.6 m in 2010.
A recognized CSR and Sustainable development culture
o Extension of the Medersat.com network of BMCE Foundation following the opening of 3 new school units besides the construction underway of 4 other schools for the 2012 academic year.
o BMCE Bank, first bank in Morocco and North Africa to be ISO 14001 certified for Environmental management, awarded by the Bureau Veritas Certification.
o ''Top CSR Performers in Morocco'' award granted by VIGEO to BMCE Bank in recognition to its CSR endeavours.
2011-2012 Awards
By EmeaFinance
BMCE Bank: "Best Bank in Morocco''
BMCE Capital Bourse: "Best Broker in Morocco''
BMCE Capital Gestion: "Best Asset manager in Morocco"
Bank of Africa: "Best Bank" in Benin, Burundi, Burkina Faso, Madagascar and Mali
By Vigeo
BMCE Bank: "TOP CSR Performers", award granted by VIGEO to BMCE Bank for its CSR and environmental strategy.
BMCE Bank
Financial Communication
Tel: +212-522-498-003 / +212-522-492-191/ +212-522-492-466
Email: communicationfinanciere@bmcebank.co.ma