BMED.L Regulatory News (BMED)

BMCE Bank: An ongoing Consolidation in Morocco and Abroad

The Board of Directors of BMCE Bank, chaired by Mr. Othman BENJELLOUN, was held on Thursday September 27, 2012, at the Bank's Head Office in Casablanca. It examined the Group's activities during the first half of 2012 and closed the related accounts.

In order to support the strategic development plan of the Bank over the next 3 years, the Board endorsed the strengthening of its Equity by DH 2 billion in cash and MAD 2 billion in the form of subordinated debts over the 2012-2015 period. These resolutions will be submitted for approval to the next Mixed General Meeting.

The 2012 first half IAS/IFRS financial statements are available on the bank's website.

Consolidated Activity

Gross Operating Income: +9%

MAD 1.8 billion

EUR 161 million

Net Banking Income: +8%

MAD 4.4 billion

EUR 396 million

Total Assets: +9%

MAD 213 billion

EUR 19.2 billion

Aggregated Activity

Gross Operating Income: +30%

MAD 1.1 billion

EUR 103 million

Net Banking Income: +13%

MAD 2.4 billion

EUR 219 million

Net earnings: +5%

MAD 546 million

EUR 49 million

·; Significant growth for the aggregated activity: Gross Operating Income up +30%

·; Transformation program: Pursuit of the rationalization measures

·; Risk monitoring: reinforcement of the risk coverage at the Group level

·; BMCE Bank International: POSITIVE EARNINGS THANKS TO THE RESTRUCTURINg MEASURES

·; BMCE BANK IN AFRICA: EQUITY STAKE IN BANK OF AFRICA BROUGHT UP TO 62%(*)

(*) 65% following a capital increase of BOA approved by the EGM of September 28, 2012

RESILIENT PERFORMANCE IN AN UNFAVOURABLE ENVIRONMENT

Aggregated Activity: +30% growth in gross operating income

·; Gross Operating Income up by +30% to MAD 1.1 billion -EUR 103 m, mainly due to:

- +12.7% increase in Net Banking Income to MAD 2.4 billion -EUR 219 m-, driven by a net interest income up +6% and dividends paid by subsidiaries;

- Cost control as illustrated by a limited increase of +0.8% in General Operating Expenses thanks to the rationalization measures.

·; Improvement in the Bank's efficiency as cost to income ratio went down by 6 percentage points, standing at 52.7%, compared with 58.9% for the same period last year.

·; +5% rise in net income to MAD 546 million -EUR 49 m-, constrained by a MAD 387 million - EUR 35 m- of loans provisions in addition to a MAD 217 million -EUR 20 m- of gross provisions of general risks.

·; +40 basis points gain in customer loans market share, attaining 12.8% as end of June 2012, and slight decrease in deposits market share to 13.81% as the bank has voluntarily reduced its term deposits by nearly -20% to enhance its cost of resources.

CONSOLIDATED Activity: SUSTAINED GROWTH IN NET BANKING INCOME aND SUBSTANTIAL PROVISIONING EFFORTS

·; +8% increase in Consolidated Net Banking Income to MAD 4.4 billion -EUR 396 m-, thanks in particular to the contribution of Sub-Saharan Africa-based subsidiaries.

·; +9% growth in Gross Operating Income from MAD 1.6 billion -EUR 147 m- to MAD 1.8 billion -EUR 191 m-

·; Substantial effort in terms of risk coverage both in local and sub-Saharan African markets, having impacted the Net Income Group Share, down -30% to MAD 360 million -EUR 33 m-at the end of June 2012 compared with MAD 517 million -EUR 47 m-a year earlier.

·; Increasing contribution of the Sub-Saharan Africa based subsidiaries to the Net Income Group Share, accounting for 26% versus 14% at end of June 2011.

·; Improvement in the contribution of European activities to the Net Income Group Share thanks to the restructuring measures undertaken, especially with regard to BBI London which reported positive net earnings for the first time.

PURSUIT OF THE TRANSFORMATION PROGRAM

·; Improvement in business efficiency as decision centers were made closer to the customer, following the creation of 8 regionally decentralized operating structures throughout the Kingdom

·; Implementation of the Reengineering of Process project, Cap Process, consisting of creating business service centers for a more efficient organization.

·; Overhaul of the permanent control system to enhance the control efficiency and allocation of dedicated resources in the light of the regionalization program.

·; Creation of a central purchasing service covering all business areas (IT, Equipment, external service providers, …) for an efficient management of purchases

2012 HIGHLIGHTS

·; Inauguration of a new Medersat.com school in Congo Brazzaville

·; Publication of the Bank's first summary activity report in Amazigh language and Braille

·; ISO 9001 version 2008 certification delivered by Bureau Veritas Certification, with zero non compliance for the Internal Audit Process management, making of BMCE Bank the first bank in Morocco and in the region to be certified in this field

A BANK COMMITTED TO ITS CLIENTS AND ENVIRONMENT

Retail Bank: development of the product portfolio

·; Enrichment of the product offer through the integration of BMCE Direct in the plans and packages and launch of packages for youth and young working people.

·; Significant growth of +44% in revenues generated from bank insurance.

·; Leader in international electronic payment with a market share of 25.5%.

·; Premiere launch by BMCE Bank and exclusively in Morocco of ''BMCE Fabuleous'' offering many advantages to customers.

·; Customized offers to Moroccans Living Abroad catering to their needs, especially in terms of money transfer.

·; New products dedicated to Very Small Businesses, an important segment in the Professionals Portfolio.

CORPORATE Bank: CONTINUED COMMERCIAL DYNAMICS

·; Growth of 12% in import flows and 14% in export flows for the bank, higher than the rates for domestic imports and exports (7% and 5%, respectively).

·; Launch of BMCE ENERGICO, first energy efficiency loan in Morocco, making of BMCE Bank a leader in green financing.

·; Launch of an innovative concept, SME Club, a platform for sharing experience between SMEs and training space gathering Bank experts, university professors andBank partners.

investment Bank: business development in a LESS FAVORABLE environment

·; Ongoing efforts made by BMCE Capital Markets to improve the quality of services provided to customers.

·; Development of the client portfolio of BMCE Capital Bourse despite unfavorable stock market conditions.

·; BMCE Capital Gestion's rating upgraded by FitchRatings from M2 to M2+ for its asset management activity

·; Increase in the assets under custody of BMCE Capital Titres during the first half of 2012 to MAD 173 billion -EUR 15.6 bn- versus MAD 172 billion -EUR 15.5 bn- at end of December 2011.

·; Important deals for BMCE Capital Conseil with many mandates relating both to M&A and market transactions.

SPECIALIZED FINANCIAL SERVICES: A DIFFICULT CONTEXT

MAGHREBAIL

·; Increase of +3.7% in Maghrebail's leases to MAD 7.7 billion-EUR 696 m-, with a roughly flat market share, standing at 19.2%

SALAFIN

·; Development of the fee business, accounting for 16% of Salafin's revenues versus 1.3% a year earlier, thanks to the diversification strategy in Africa.

·; Improvement in the cost of risk down -40% to MAD 18.8 million -EUR 1.7 m-thanks to debt collection efforts combined with a more conservative lending policy

MAROC FACTORING

·; First half marked for the factoring subsidiaryby the launch of a vast program in terms of organization, human resources, risk management, refinancing and commercial approach led by the newly appointed management board in 2012

·; Limited decrease of -4% in Net Banking Income in a context of high decline in export factoring

SUBSAHARAN AFRICA BASED SUBSIDIARIES: ACCELERATED DEVELOPMENT

BANK OF AFRICA

·; Network extension with the opening of 48 new branches on a rolling year along with a +22.5% growth in customer base reaching 1.3 million accounts.

·; Good commercial performance with a two digit growth in deposits (+17% to € 3.1 bn) and loans (+25% to € 2 bn).

·; Substantial financial performance as evidenced by a strong increase of +77% in net income to € 32.2 m, +22% in net banking income to € 141.6 m and +17% in gross operating income to € 57 m.

·; Reinforcement of BMCE Bank's equity stake in BOA Group to 62%.

LA CONGOLAISE DE BANQUE

·; Satisfactory financial performance with a two digit growth in main aggregates: gross operating income (+52% to € 7 million), net banking income (+27% to € 15 m) and net earnings (+26% to € 4.6 m).

·; First bank in the country with maintained loans and deposits market shares at 25% and 20%, respectively.

BANQUE DE DEVELOPPEMENT DU MALI

·; +57% growth in net earnings to MAD 83 million -EUR 7.5 m-, doubling its contribution to Net Income group Share from 3% to 6%.

EUROPEAN SUBSIDIARIES: RETURN TO EQUILIBRIUM

BMCE INTERNATIONAL MADRID

·; Good financial performance as illustrated in particular by a +22% increase in net income to € 2.2 m and +23% in net banking income to € 5.5 m.

·; Reaping fruits of the deep restructuring program carried out at the management of BMCE Bank International Plc, with the achievement for the first time of a positive net income of MAD 7 million -EUR 616 K- since its inception

CSR AND SUSTAINABLE DEVELOPMENT: A MODEL REACHING OUT TO THE CONTINENT

BMCE BANK FOUNDATION

·; Further extension of the Medersat.Com network with the opening of a school in the Imouzzer Marmoucha region, the inauguration of a school in Congo Brazzaville, besides the construction of a school in Bamako, Mali.

·; Organization of the International Day of Financefor children to promote financial education among the Mdersat.Com pupils.

SUSTAINABLE FINANCE

·; Promotion of the Green Business within the Bank with the launch of a new process for financing the green economy.

·; Maintain of the ISO 14001 certification with zero non compliance

·; Integration of the Environmental management system principles at the regional structures level.

BMCE Bank Financial Communication

Contact:

Tel: +212-522-498-003

Email: relationsinvestisseurs@bmcebank.co.ma

Website: www.bmcebank.ma