25 Mar 2013 18:32
BMCE BANK GROUP FINANCIAL COMMUNICATION
FINANCIAL YEAR 2012
A SOLID FINANCIAL PERFORMANCE IN 2012 IN LINE WITH OBJECTIVES
BMCE Bank's Board of Directors, chaired by Mr Othman Benjelloun, met on Friday 22 March 2013 at the bank's registered office in Casablanca. It examined the business activity of the bank and of the Group for the financial year ended 31 December 2012 and drew up the financial statements for the year in question.
The Board of Directors will propose to the Annual General Meeting of Shareholders a dividend of 3.30 dirhams per share.
The 2012 financial statements under IAS/IFRS are published on the bank's website www.bmcebank.ma.
·; Net income excluding exceptional items of more than MAD 1 billion -more than $116 m and €90m
·; Capital base strengthened with a 15% rise to MAD 14.3 billion -$1.7bn and €1.3 bn- in shareholders' equity attributable to Parent
·; BMCE Bank Group expands further in Africa with operations in 19 countries
CONSOLIDATED ACTIVITY
+47%
MAD 1.2 billion -$140 m and €108m-
Net Income Attributable to Parent
Excluding exceptional items
+9%
MAD 923 million -$107 m and €83m-
Net Income Attributable to Parent
+11%
MAD 9 billion -$1bn and €811m-
Net banking income
+19%
MAD 3.6 billion -$419 m and €324m-
Gross operating income
AGGREGATED ACTIVITY
+90%
MAD 1.0 billion -$116 m and €90m-
Aggregated net income
Excluding exceptional items
+31%
MAD 713 million -$83 m and €64m
Aggregated net income
+13%
MAD 4.6 billion -$535 m and €414m
Net banking income
+41%
MAD 1.8 billion -$209 m and €162m
Gross operating income
STRONG GROWTH ACROSS THE BOARD
CONSOLIDATED ACTIVITY: 47% RISE IN NET INCOME ATTRIBUTABLE TO PARENT EXCLUDING EXCEPTIONAL ITEMS TO MAD 1.2 BILLION -$140 m and €108m-
9% rise in Net Income Attributable to Parent to MAD 923 million -$107 m and €83m- despite more than MAD 1 billion in provisions (MAD 1.1 billion; $128 m and €99m-).
47% rise in Net Income Attributable to Parent excluding exceptional items to MAD 1.2 billion -$140 m and €108m - exceptional net charge of MAD 323 million -related to taxation and the Social Cohesion Contribution.
- A very strong performance by domestic activities including (i) BMCE Bank SA which saw its contribution rise by 78% and (ii) the investment banking and asset management division which registered a 15% increase in its contribution to Net Income Attributable to Parent excluding exceptional items;
- Solid results from international activities with (i) a positive contribution from European subsidiaries, accounting for 4% of Net Income Attributable to Parent excluding exceptional items versus a negative contribution the previous year and (ii) a 30% rise in the contribution from sub-Sahara African activities.
11% rise in consolidated net banking income to more than MAD 9 billion -$1bn and €811m- for the first time. This, together with a 6% rise in general operating expenses resulted in a 2.6 point improvement in the cost-to-income ratio to 60.3%.
19% rise in gross operating income to almost MAD 3.6 billion -$419 m and €324m-in 2012 versus MAD 3 billion -$349 m and €270m-the previous year due to a sustainable performance at the operating level.
Capital base strengthened with a 15% increase in shareholders' equity Attributable to Parent from MAD 12.4 billion -$1.4bn and €1.1 bn - in 2011 to MAD 14.3 billion -$1.7bn and €1.3 bn -in 2012 following a MAD 1.5 billion -$175 m and €135 m - equity issue reserved for reference shareholders. The purpose was to provide adequate funds for the Group's strategic development domestically and overseas and to meet new regulatory capital requirements.
Steady growth in the Group's assets at 11% over the past 4 years with total consolidated assets of MAD 231 billion -$27bn and €21 bn -in 2012.
4% rise to MAD 144.6 billion - $17bn and €13 bn -in consolidated deposits and 14% increase to MAD 138.8 billion - $16bn and €12.5 bn -in consolidated loans.
AGGREGATED ACTIVITY: DOUBLE-DIGIT GROWTH IN THE MAIN INDICATORS
90% year-on-year rise in aggregated net income excluding exceptional items to more than MAD 1 billion -$116 m and €90m- and 31% rise from MAD 545 million -$63 m and €49m- in 2011 to MAD 713 million -$83 m and €64m - in 2012 after recognition of an exceptional tax expense.
13% rise to MAD 4.6 billion -$535 m and €414m- in aggregated net banking income due to a strong performance by the bank's core business as can be seen in an 11% increase in net interest income and a 9% rise in fee income.
Growth in general operating expenses contained at 5.5% resulting in a 4.3 point improvement in the cost-to-income ratio to 60.6%.
41% rise in gross operating income to MAD 1.8 billion -$209 m and €162m- due to a substantial provisioning effort of almost MAD 712 million - $83 m and €64m - including a MAD 217 million -$25 m and €19.5m - sector-specific gross provision for general risks taking total gross provisions for general risks to MAD 472 million -$55 m and €42.5m -.
Strong ability to attract savings with a 6% rise in deposits to MAD 107 billion -$12 bn and €10 bn - versus 2.7% growth in sector deposits resulting in a 43 basis point improvement in BMCE Bank's market share to 14.78%.
Strong momentum in lending with a 6% rise in total loans to MAD 93.5 billion -$11 bn and €8 bn - , resulting in an 11 basis point improvement in market share.
IMPROVEMENT IN THE BANK'S SOLVENCY AND RISK PROFILE
Core capital bolstered resulting in a Tier 1 capital ratio of more than 9% and a solvency ratio of more than 12%.
40 basis point decline in the loan loss ratio to 4.53% which is below the sector average of 4.96%
Improvement in the non-performing loan coverage ratio from 67.4% in 2011 to 71.6% in 2012.
POSITIVE PERFORMANCE BY THE GROUP'S INDIVIDUAL BUSINESS LINES
RETAIL BANKING: NEW MARKET SEGMENTS TARGETED
Significant growth of 29% in total bancassurance revenue to MAD 1.7 billion -$198 m and €153 m -
Services for Moroccans living abroad enhanced to satisfy their changing needs such as E-transfert and Cash to Account.
Development strategy launched targeting the high-growth private client market segment.
BMCE Direct, the bank's remote banking service enhanced with the introduction of an online stockbroking service.
New services introduced aimed at very small enterprises such as Forfait TPE and Crédit Damane Express.
CORPORATE BANKING: A SUCCESSFUL SME STRATEGY GENERATING ADDTIONAL VALUE
11.2% growth in corporate banking deposits to MAD 25 billion -$3 bn and €2 bn - and 4.3% growth in corporate loans to MAD 61.3 billion -$7 bn and €5.5 bn -.
Coverage of SME banking market segment bolstered through: (i) a more personalised products and services offering and greater innovation e.g. Pack Business PME and Club PME and (ii) closer relations with SME customers by organising regional meetings.
Foreign trade business strengthened as can be seen in the 12% rise in import volumes and the 16% rise in export volumes, registering a stronger pace of growth than the industry average (+7% and +4% respectively).
Market leadership in Project Finance consolidated due to a number of large-scale deals in various sectors despite less than favourable business conditions.
Closer relations developed with corporate customers with the opening of 3 new business centres in Nador, Oujda and Laâyoune.
INVESTMENT BANKING: MARKET CONDITIONS STILL UNFAVOURABLE
BMCE Capital Markets' share of the private debt market rose to 53.2% due to aggressive sales and a differentiated product offering, resulting in the bank retaining its position as the market leader.
Synergies derived between BMCE Capital Bourse and CM-CIC Securities as part of the African Securities Network project with an agreement signed to distribute each other's research products.
5% rise to MAD 33.5 billion -$4 bn and €3 bn - in BMCE Capital Gestion's assets under management versus a 4.6% rise for the sector, resulting in increased market share to 14%.
BMCE Capital Titres' volume of assets under custody stable and market share unchanged at 28% despite a decline in stock market volume in 2012.
SPECIALISED FINANCIAL SERVICES: RESILIENT PERFORMANCE DESPITE AN UNFAVOURABLE ENVIRONMENT
MAGHREBAIL
6.3% growth in net outstandings versus 3% growth for the sector resulting in a rise in market share from 19.8% to 20.5%.
SALAFIN
6% rise in distributed loans against a fall in that of the sector with net income broadly unchanged at MAD 92 million -$11 m and €8 m - inclusive of a MAD 1.4 million -$163 k and €126 K - Social Cohesion Contribution.
MAROC FACTORING
2012 was marked by a refocusing of activities on the core business, full factoring, by outsourcing the corporate client portfolio, reorganising sales and reducing costs in a highly competitive environment.
RM EXPERTS
Positive performance from BMCE Bank Group's debt recovery subsidiary with the volume of debt recovered totalling MAD 305 million -$35 m and €27 m - in 2012 resulting in MAD 130 million -$15 m and €12 m - in provision write-backs.
SUB-SAHARA AFRICAN ACTIVITIES: GROUP INCREASINGLY ANCHORED IN AFRICA
BANK OF AFRICA
Solid consolidated results with 15% rise to € 291 million -$ 376 million- in net banking income and 13.6% increase to € 119 million -$ 154 million- in gross operating income.
Strong commercial performance with (i) 11% growth in customer deposits to € 3.2 billion -$ 4.1 bn- and 20% increase to € 2.2 billion -$ 2.8 bn- in customer loans and (ii) 23% rise in customer portfolio to 1.4 million accounts.
BOA Group continues to grow organically with 32 new branch openings taking the total distribution network to 370 branches covering 15 countries.
Banking licence granted to Bank of Africa in Togo in 2012,taking the total number of countries in which the Group has operations to 15.
LA CONGOLAISE DE BANQUE
Another positive financial performance in line with previous years with a 17% rise to € 30 million -$ 39 million- in net banking income and a 16% rise to € 10.7 million -$ 13.8 million- in net income.
BANQUE DE DEVELOPPEMENT DU MALI
Significant growth of 21% to €12.7 million -$ 16.4 million- in net income at 31 December 2012.
EUROPEAN ACTIVITIES: RETURN TO BREAK-EVEN
Recovery seen at BMCE Bank International Plc, the Group's London-based subsidiary, with net income of £ 1.2 billion, in the black for the first time since establishment, due to a major restructuring programme since 2011.
Satisfactory results from BMCE Bank International Madrid despite a difficult economic environment in Spain with net banking income stable at € 11 million -$ 14 million- and net income of € 3 million -$ 4 million-.
CSR AND SUSTAINABLE DEVELOPMENT: CONSOLIDATION OF SOCIALLY-RESPONSIBLE AND ENVIRONMENTAL PRACTICES
BMCE Bank Foundation honoured by the awards bestowed upon its President, Dr Leila Mezian Benjelloun, in acknowledgment of her commitment to promoting Amazigh culture and human development including the Prix du Mérite de la Culture Amazighe 2011 from the Royal Institute of Amazigh Culture as well as the Woman of the Year 2012 prize from the American Chamber of Commerce.
Expansion of the Medersat.Com network to 174 complexes, school and pre-school units following the opening of a school in Imouzzer Marmoucha and the building of an establishment in Bamako in Mali. This takes the total number of children educated and cared for by the Foundation to 14,000.
Energico, Morocco's first green product, introduced by the corporate banking network, aimed primarily at SMEs to help them finance the purchase of energy-saving equipment.
Encouraging results which exceeded expectations following the implementation of ISO 14001 aimed at reducing water, electricity and paper consumption.
2012-2013 HIGHLIGHTS
Shareholding in Bank of Africa Group increased to 68%.
BOA granted banking licence in Togo.
BMCE Bank named "Best Trade Finance Bank in Morocco" by Global Trade Review as well as "Socially Responsible Bank of the Year" by African Banker Awards.
BMCE Bank International Plc awarded "African Project Finance - Transport Deal of the Year" by Euromoney.
MAD 1.5 billion -$175 m and €135 m - equity issue by BMCE Bank reserved for major shareholders.
MAD 1 billion -$116 m and €90m- subordinated bond issue.
$75 million credit line obtained from the European Bank for Reconstruction and Development (EBRD) to refinance foreign trade activities.
Spanish subsidiary BMCE Euroservices established to take charge of the Moroccans living abroad business in partnership with the domestic network in the context of the Group reorganising its European platform.
BMCE BANK
FINANCIAL COMMUNICATION
Tel: +212 522 49 80 03/04 Fax: +212 522 26 49 65
E-mail: relationsinvestisseurs@bmcebank.co.ma
Website: www.bmcebank.ma