29 Mar 2016 07:00
BMCE BANK OF AFRICA
Financial Communication
2015 Results
STRATEGIC DEVELOPMENT PLAN 2012-2015:
OBJECTIVES REACHED
BMCE Bank's Board of Directors, chaired by Mr Othman BENJELLOUN, met on Friday 25 March 2016 at the Bank's head office in Casablanca. It examined the business activity of the Bank and of the Group for the financial year ended 31 December 2015 and drew up the financial statements for the financial year in question.
The Board of Directors will propose to the Annual General Meeting of Shareholders a dividend payment of 5 dirhams per share, to be paid in July 2016.
Similarly, the Board of Directors will also propose to the said Annual General Meeting the appointment of four new Directors, Mr François HENROT, Mr Christian DE BOISSIEU, Mr Philippe DE FONTAINE-VIVE and Mr Brian C. McK. HENDERSON, with the aim of making the Bank's Board of Directors more independent.
The 2015 consolidated financial statements prepared under IAS/IFRS are published on the bank's website www.bmcebank.ma.
CONSOLIDATED FINANCIAL STATEMENTS
CHANGE CAGR*
2014-2015 2011-2015
+1% Net Income attributable to shareholders of the parent company MAD 1.9 billion +23%
+3% Net Banking Income MAD 11.8 billion +10%
+13% Total Assets MAD 279 billion +18%
* Compound Annual Growth Rate 2011-2015
STRATEGIC DEVELOPMENT PLAN 2012-2015
Earnings up by more than double and Group profitability increases with ROE growing by as much as 7.2% to 13% in 2015
Gains in operational efficiency as illustrated by the consolidated cost-to-income ratio which has fallen from 63% in 2011 to 58.7% in 2015
Increased sales penetration in Morocco, resulting in market share gains
Further expansion in Africa, with operations established in three new sub-Saharan African countries
European platform reorganised, becoming the Group's 3rd most important profit centre
FINANCIAL COMMUNICATION
Tel: +212 522 49 80 03/04 - Fax: +212 522 26 49 65 E-mail: relationsinvestisseurs@bmcebank.co.ma
A CONVINCING SET OF 2015 RESULTS
CONSOLIDATED FINANCIAL STATEMENTS
Net income attributable to shareholders of the parent company rose by +1% to almost MAD 2 billion, despite a steep decline (-45%) in income from market operations.
Consolidated net banking income was almost +3% ahead to MAD 11.8 billion, impacted by non-recurring items related to market operations. The contribution to net banking income from commercial banking - recurring net banking income - rose +9%, due namely to net interest income (+10%).
Improvement in the quality of the Group's revenues with the core business - interest-generating operations and fee income - accounting for almost 90% of the Group's consolidated net banking income.
The cost of risk ratio improved from 1.3% in 2014 to 1% in 2015 due to a -19% decline to MAD 1.4 billion in the cost of risk.
The Group's total assets saw further growth (+13%) to MAD 279 billion.
The Group's financial position was further bolstered with a +6% increase in shareholders' equity to MAD 17 billion in 2015 versus MAD 16 billion in 2014.
PARENT FINANCIAL STATEMENTS
Parent net income rose by +8.3% to MAD 1,304 million in 2015 versus MAD 1,204 million in 2014.
Modest -2.6% decline in parent net banking income to MAD 5,374 million due to a -45% decline in income from market operations following an exceptional performance in 2014 against a backdrop of declining yields; this was offset by a healthy performance by the core business with net interest income +8.0% ahead and strong growth (+13.3%) in fee income.
-17% decline in the cost of risk to MAD 955 million in 2015 versus MAD 1,151 million in 2014.
Market share of customer loans (+60 basis points) and customer deposits stood at 13.8% and 14.05% at end-December 2015.
The branch network expanded to almost 700 branches with 35 new branches opened in 2015.
Forthcoming Meeting
Monday, 28 March 2016
at 15:30
Meeting with Analysts and the Press
BMCE Bank of Africa Group's Annual Results 2015
STRATEGIC DEVELOPMENT PLAN 2012-2015: OBJECTIVES REACHED
EARNINGS UP BY MORE THAN DOUBLE
Net income attributable to shareholders of the parent company more than doubled to just below the MAD 2 billion mark, registering average compound growth (CAGR) of +23%.
Parent net income - BMCE Bank SA - was two and a half times higher, surpassing the MAD 1.3 billion mark and resulting in an CAGR of +24%.
Significant improvement in profitability with consolidated ROE up from 7.2% in 2011 to 12.8% in 2015, ahead of the 12% target outlined in the Strategic Development Plan (SDP) and above the banking industry average.
IMPROVEMENT IN OPERATIONAL AND COMMERCIAL EFFICIENCY
Significant improvement in core banking operations since 2011 with consolidated net banking income registering average compound growth of more than +10% to almost MAD 12 billion.
Improvement in operational efficiency as illustrated by the downward trend in the consolidated cost-to-income ratio, down from 63% in 2011 to 58.7% in 2015, despite the very high levels of investment made organically and in terms of acquisitions.
STRENTHNING THE AFRICAN DIMENSION OF THE GROUP
BMCE Bank of Africa, Africa's second largest banking group in terms of network size, has operations in 20 countries with coverage of four of the continent's five main economic regions.
The Group's branch network saw further expansion across the continent with about 50 branch openings each year, taking the total number of branches to 1,230 including 700 in Morocco.
Strong growth of the Group's core banking business with 2 million accounts opened across the continent over the same 4-year period.
The Group has acquired the status of a pan-African banking group with a third of Group earnings generated by African operations - the contribution from Africa has increased steadily since 2011 and at an average compoundl rate of +18%.
EUROPEAN PLATFORM ON TRACK TO BEING PROFITABLE ON A SUSTAINABLE BASIS
The European platform has become the Group's 3rd largest profit centre, accounting for 9% of earnings versus -1% in 2011, after 5 years of losses since it was established.
Since 2012, BBI's parent net income has risen six-fold, reaching £7.8 million in 2015.
OBJECTIVES REACHED WHILE MAINTAINING STRONG RISK CONTROL
The Group's cost of risk ratio has been broadly unchanged at about 1% since the start of the Strategic Development Plan (SDP).
Major focus on loan recovery - almost MAD 1 billion (MAD 988 million) of cumulative provision write-backs over the period 2011-2015, including MAD 423 million in 2015 alone.
BMCE Bank Group's consolidated financial statements (MAD M)
Net income attributable to shareholders of the parent company
CAGR* 11-15 +23%
Net banking income
CAGR* 11-15 +10%
Total assets
CAGR* 11-15 +8%
*Compound Annual Growth Rate
Net income attributable to shareholders of the parent company by geographical region at 31 December 2015
Morocco 60%
Africa 31%
Europe 9%
VERY STRONG COMMERCIAL PERFORMANCE
PERSONAL AND PROFESSIONAL BANKING - UPWARD TREND IN INDICATORS
Market share gains of +112 basis points from 19.2% to 20.4% in consumer loans and of +56 basis points from 14.5% to 15% in homes loans.
+42% increase in the number of accounts opened for youngsters and three products launched for this customer segment: (i) Crédit Enseignement plus Complémentaire (ii) Crédit Etudes à l'étranger (iii) and Carte Flexy Jeunes.
+11.4% growth in the number of bank-insurance contracts sold, resulting in a bank-insurance penetration ratio of 36.4%.
Significant increase in bank card usage with the total number of cards issued growing by more than 15% and surpassing the 1 million mark at end-December 2015.
Consolidated leadership in terms of international bank cards as demonstrated by the share of the international bank cards market reaching 21.5% in 2015 versus 18.8% in 2014 with the volume of payment and withdrawal transactions by foreign currency-denominated cards rising sharply (+40%).
Increased penetration of the Professional banking customer base post the introduction of a new comprehensive range of products and services comprising: (i) packages (ii) online services including a dedicated website www.bmcepro.ma and (iii) amortisable loans, operating loans, leasing and bank-insurance products.
+12% growth year-on-year in the overall private client portfolio.
Transfers from Moroccan living abroad up +10.5% due to the considerable sales clout of the overseas network with two new branches opened in Belgium and Spain and a representative office opened in Abu Dhabi i in the United Arab Emirates.
BMCE MRE Invest, a new product was launched - this is a medium- to long-term loan for expatriates, which enables them to make new investments or extend existing projects within the manufacturing, manufacturing-related services, education, hospitality and health sectors.
CORPORATE BANKING - A FINELY TUNED SERVICE
Growth of +16.7% and +2.7% in Corporate Banking deposits and loans to MAD 27.7 billion and MAD 67.1 billion respectively in 2015.
Import flows up +14% and export flows +31% ahead in 2015 with the launch of Passeport Africa, a multi-service foreign trade package for BMCE Bank and Bank of Africa customers.
BMCE CapEnergie solution launched, the first of its kind in Morocco, to help businesses to acquire energy-saving equipment or to renovate their existing industrial plant or hotel facilities by adopting an energy efficient approach.
Positive track record since the SME Club was founded 3 years ago with closer relations fostered with SME customers based on an advisory and supportive approach. Morning meetings were organised to discuss strategic issues and a certified training programme was provided to 11 classes, which benefited 145 SMEs.
More than 1,600 new SME accounts opened with an SME business package penetration ratio of 32%.
IMTIAZ-CROISSANCE, the very latest version of the IMTIAZ Programme was launched, targeting very small enterprises.
Three new business centres opened in 2015, taking the total number of units to 31.
INVESTMENT BANKING - AFRICAN STRATEGY REAPING ITS REWARDS
BMCE Capital Markets bolstered its presence in the African market by participating in a bond issue in Ivory Coast and creating a new pan-African investment portfolio for the Bank.
BMCE Capital Bourse's market share unchanged at a relatively respectable 14% despite a somewhat challenging stock market environment. ISO 9001:2008 certification was obtained in October 2015.
Closer relations fostered with BMCE Capital Gestion Privée's clients by offering a high-quality service and greater emphasis on sales and marketing.
In a market context in which trading volumes were broadly unchanged year-on-year and with stock market indices sharply lower, BMCE Capital Titres' market share was unchanged at 27% with MAD 196 billion of assets under custody.
BMCE Capital Conseil continued to diversify its range of activities, providing advisory services in restructuring, mergers and acquisitions, corporate debt transactions and project finance, working with BOA Capital in sub-Saharan Africa on a number of different projects.
Record results for BMCE Capital Gestion with assets under management up by as much as +27%, outperforming its peer group. Its reputation as the most innovative company within the domestic industry was further enhanced with the launch of OPCVM Direct, the country's first ever mutual fund trading platform. In addition, 5 new funds were launched in 2015.
BMCE Capital Research's pan-African approach was successfully implemented, consistent with BMCE Capital's african strategy as deployed by those Group subsidiaries participating in the African Securities Network (ASN) project. Its publications have met with considerable success in those countries in which they have been distributed.
BOA Capital's operations launched with a number of initial deals completed, suggesting that it has a promising future.
SPECIALISED FINANCIAL SERVICES: STRONG SALES GROWTH
MAGHREBAIL
Production +5% higher, resulting in market share gains of 100 basis points to 23.8% at end-2015 and becoming the 3rd highest ranking player in the leasing market.
A branch is in the process of being set up within the Tangier Free Zone, which will offer tax-free foreign currency-denominated lease finance solutions to businesses operating within the zone.
SALAFIN
Total production unchanged at MAD 1,178 million with market share gains in personal loans, reaching 11.2% at end-2015 versus 10.6% in 2014.
Net banking income rose by +14.7% to MAD 354.5 million, with a strong performance across the board. Net income rose by as much as +18.5% to reach MAD 125 million.
MAROC FACTORING
With a number of factoring contracts maturing and given the risk-averse environment, Maroc Factoring's revenue was significantly impacted.
Sales initiatives were carried out to build customer loyalty and attract new business as part of a diversification strategy targeting mainly SMEs.
RM EXPERTS
The company's debt recovery strategy was effective, resulting in MAD 601 million of debt recovered in 2015, versus MAD 497 million in 2014, up by a substantial +20%.
ISO 9001 certification was renewed following an audit of RM EXPERTS' different units in 2015, which resulted in an 'excellence' rating with zero deviation and zero areas of weakness.
AFRICAN OPERATIONS - FURTHER GROWTH IN BANK OF AFRICA'S AFRICAN OPERATIONS
BANK OF AFRICA
Bank of Africa Group expanded into Rwanda in 2015, having begun operations Togo in 2013 and in Ethiopia in 2014.
Consolidated net income grew +6.2% to € 95.6 million due to a +13.4% increase in net banking income to € 440 million in 2015 and a modest improvement in the cost-to-income ratio, down from 62.9% in 2014 to 61.7% in 2015.
Strong growth of the core banking business with 34 new branches opened, taking the total number of branches to 495 in 2015. 470,000 new accounts were opened, taking the total number of accounts to almost 2.7 million, up +21%.
Double-digit growth in the Group's commercial activity with double digit growth in both loans (+11.8%) and deposits (+16.5%) to € 3.5 billion and € 4.7 billion respectively.
LA CONGOLAISE DE BANQUE
Stake raised to 37% in La Congolaise de Banque, a market leader in credit distribution in Congo and the country's largest bank in terms of branch network size. The Bank aims to become a leading regional bank in Central Africa.
Process underway to establish a leasing subsidiary in partnership with Maghrebail so as to support LCB Bank's customers in their development projects and in investment financing, which should result in intra-Group synergies in Africa.
BANQUE DE DEVELOPPEMENT DU MALI
Banque de Développement du Mali's net income tripled to € 23 million, resulting in a sharp improvement in the Bank's ROE to a comfortable level in excess of 26%.
Improvements in governance with the creation of a new Board of Directors and the appointment of a new management team.
EUROPEAN PLATFORM: POSITIVE PERFORMANCE
BMCE BANK INTERNATIONAL HOLDING
European platform registered stronger earnings at end-December 2015 with significant growth in net income (+37%) to £12.2 million and in net banking income (+21%) to £28 million.
BBI LONDRES AND PARIS
+15% rise in net banking income to £16.2 million, primarily due to strong commercial development, the diversification of the loan portfolio by geographical region and sector into new markets as well as developing intra-Group synergies.
+36% growth in net income to £7.8 million, resulting in an increase in ROE to 14.4% in 2015 versus 11.3% in 2014.
BBI MADRID
Thanks to its portfolio diversification strategy, an increase in the volume of transactions with large enterprises as well as strong growth of the trade finance business, BBI Madrid's net banking income reached € 17 million for the first time at end-2015, up by as much as +39% compared to end-2014.
Net income also rose sharply (+44%) to almost €6.1 million at end-2015 versus €4.2 million at end-2014 while the cost-to-income ratio improved by -8p% to 27% at end-2015 versus 35% in 2014.
CORPORATE SOCIAL RESPONSIBILITY: A STRONG AND WELL-FOUNDED APPROACH
Mandarin Chinese taught in three Medersat.Com network schools, as a result of a collaborative partnership between the Foundation and the Chinese embassy in Morocco.
BMCE Bank Foundation's Medersat.com network expanded with the opening of a new school in Béni Chiguer in Nador, thereby strengthening the Foundation's schools network within the region.
Medersat.Com pupils obtained the 3rd prize in the National Olympiads of Tifinagh, held in August 2015 in Tafraout.
BMCE Bank named Socially Responsible Bank of the Year in 2015 by the African Banker and Best CSR Arabia 2015 in the financial services category. It was the only quoted company on the Casablanca Stock Exchange to have received the highest scores in seven social responsibility themes.
BMCE Capital Gestion, a subsidiary, launched Morocco's first ever SRI fund and, in doing so, has incited its peers to give serious thought to developing socially responsible funds.
Cap Energie product, overseen by the Moroccan Sustainable Energy Financing Facility (MORSEFF) programme, was deemed a success and is now regarded by the EBRD as a role model within the MENA region, with 88% or MAD 175 million of the credit line already used.
The premier edition of the African Entrepreneurship Award saw BMCE Bank award prizes to 10 winners from among 34 finalists and more than 5,000 candidates from 54 African countries, who shared in the USD 1 million prize. The Award acknowledged the best project ideas in Africa in the fields of education, the environment and unchartered area.
HIGHLIGHTS
• The Group's new corporate name, BMCE Bank of Africa, unveiled, underlining its African profile
• Celebration of 55th anniversary of the Bank's creation and the 20th anniversary of the BMCE Bank's Foundation
• The Group increased its stake in BOA Group to 75%, in BDM to 32.4% and in LCB to 37%
• Bank of Africa expands into Rwanda in November 2015
• Mandarin Chinese introduced into the BMCE Bank Foundation's Medersat.Com network of schools
• The premier edition of the African Entrepreneurship Award saw BMCE Bank award prizes to 10 winners in Africa in recognition of the best project ideas.
• BMCE Bank named Socially Responsible Bank of the Year at the 9th edition of the African Banker Awards.
· "Top performer CSR Morocco" for a second time, by Vigeo
• BMCE Capital Gestion awarded ISAE 3402 Type II global certification for a second time by PwC, a consulting firm, for internal control system efficiency