BMED.L Regulatory News (BMED)

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ir-bmcebankofafrica.ma

FRESH IMPETUS FOR THE GROUP'S DEVELOPMENT,

UNDERPINNING SUSTAINABLE LONG-TERM GROWTH

BMCE Bank's Board of Directors, chaired by Mr Othman BENJELLOUN, met on Friday 29 March 2019 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 2018 and drew up the financial statements for the financial year in question. It has also adopted the new Strategic Development Plan 2019-2021 as well as its financing plan for the same period.

The Board of Directors will propose to the Annual General Meeting of Shareholders a dividend of 5 dirhams per share in respect of the 2018 financial year with an option to partially or fully convert this dividend into shares.

Thus, the Board of Directors will propose to the Extraordinary General Meeting an increase of the share capital (*) to be realized in two parts:

- a first part open to all shareholders of the Bank, to be released in the form of a scrip dividend - optional conversion of dividends into shares - for the 2018 financial year ;

- a second part of up to one billion dirhams per public offering with preferential rights shareholder subscription, to be paid in cash at the time of subscription.

The 2018 financial statements prepared under IAS/IFRS and the notes to the financial statements are available on the website www.ir-bmcebankofafrica.ma.

Capital increases through:

- Scrip dividend for 2018 - 900 MMAD- and renewed for FY 2019

- Public offering, for a maximum amount of MAD 1 billion

Forthcoming entry of an international investor (*) in the capital of BMCE Bank to an amount of USD 200 million -MAD 2 billion-

At 31 December 2018, a downturn in financial indicators in a context of the Group's balance sheet optimization to ensure that capital adequacy ratios meet regulatory requirements.

BMCE Bank's viability rating upgraded by Fitch Ratings from b+ to bb-.

(*) subject to approval by the relevant regulatory authorities.

Annual Results 2018

Net income (MAD millions)

Net income attributable to shareholders of the parent company -10%

Net income -9.7%

Net banking income (MAD millions)

Consolidated -1%

Parent -3%

Total assets (MAD billions)

Consolidated -5%

Parent -8%

Shareholders' equity (MAD millions)

Shareholders' equity attributable to shareholders of the parent company +7.6%

Parent shareholders' equity +3%

STRATEGIC DEVELOPMENT PLAN 2019-2021

Renewed dynamic boosted by the launch of a new Strategic Development Plan, entirely consistent with the initial Strategic Development Plan 2012-2015, while improving the Group's operational efficiency.

A financing plan over 3 years in support of the Strategic Development Plan 2019-2021 leading to the reinforcement of the level of the Common Equity Tier 1 and the Additional Tier 1.

A capital increase is planned in 2019.

Fresh impetus from a recovery in the banking business and from implementing a process of optimisation and rationalisation through a number of measures, including bolstering the Group's hybrid 'phygital' model and reconfiguring its international operations, particularly in Europe.

FULL-YEAR PERFORMANCE 2018 SIMILAR TO THAT SEEN IN FIRST HALF 2018

Downturn in BMCE Bank of Africa's performance due to a slowdown in the banking business, resulting in a 10% fall in net income attributable to shareholders of the parent company and in parent net income, similar to that seen in first half 2018.

A performance recorded after a period of strong double-digit growth since 2012, the year in which the Group implemented its Strategic Development Plan 2012-2015.

Improvement in the Group's risk profile:

- Limited increase in the consolidated cost of risk to +2% to MAD 1,834 million at 31 December 2018.

- Significant increase in provisioning at the consolidated level as a result of applying IFRS 9, resulting in a stock of consolidated provisions of MAD 13.9 billion, up 11.2% on 2017.

- Increase in the consolidated non-performing loan coverage ratio from 60% to 66.1% in 2018 as a result of having to recognise additional provisions for sound loans (IFRS 9) and in the parent non-performing loan coverage ratio, which rose from 67% at 31 December 2017 to 70% in 2018.

Improvement in capital adequacy ratios at 31 December 2018 to 12.6% at the consolidated level vs. 12.5% in 2017 and to 14.6% at the parent level versus 13.7%; similarly, for the consolidated Tier 1 capital ratio to 9.6% vs. 9.3% and in the parent Tier I capital ratio to 10.2% vs. 9.5% in 2017.

FITCH RATINGS UPGRADED THE BANK'S VIABILITY RATING

Upgrade by Fitch Ratings of the Bank's viability rating from b+ to bb-. Viability ratings measure the Bank's intrinsic credit worthiness. The reason for this upgrade was that the Bank's risk profile saw improvement, alleviating pressure on its capital adequacy ratios.

DIGITAL AND MULTI-CHANNEL TRANSFORMATION UNDERWAY

Agence Directe's distribution channels expanded; since it was launched in 2016, the Bank has employed 5 languages - French, English, Spanish, Italian, Dutch - to serve a variety of prospective expatriate customers. Agence Directe was the first digital platform within the industry to offer customers an online chat facility.

BMCE Direct's banking services enhanced including prepaid card top-ups, the ability to change 3DS coordinates, file complaints or cancel bank cards, enhanced transaction security (one-time passwords and transaction limits) and implement transactional notifications for various online and mobile transactions.

Increased customer usage of Ligne Directe for after-sales and transactional services and requests for information.

Transaction-based website launched by BMCE EuroServices in France to expand its digital range and meet the needs of an increasingly digital-savvy customer base.

Digital banking project initiated by LCB Bank and Mali Development Bank with the introduction of innovative and pioneering solutions for payments and mobile money transfers.

LEADERSHIP IN POSITIVE IMPACT UNDERTAKINGS

CapValoris launched, a comprehensive solution for funding solid waste recovery projects at a subsidised rate of interest and free technical assistance provided by a specialist consulting firm.

Turnkey finance solution proposed consisting of a bank loan and free technical assistance as part of the EUR 20 million Ligne Bleue funding line for Morocco-based water and sanitation projects.

Tender offer launched for the 2018 IMTIAZ and ISTITMAR programmes as part of ongoing initiatives by Maroc PME to support high-growth companies that are intent on investing in projects that create value and generate jobs.

Further growth in the SME business through cross-selling and up-selling products and services to a customer portfolio which has doubled since 2012.

Sustainable finance solutions to the fore, with the MorSEFF facility placed in its entirety, Cap Valoris regional training courses introduced and offers of technical support for Cap Bleu under preparation, as well as the Women in Business initiative, which aims to promote and support economic and social inclusion.

Risk analysis systems bolstered for environmental, social and governance (ESG) risks, inspired by UNEP-FI's Positive Impact Working Group while an impact-based business model is being developed.

Corporate Social Responsibility Charter implemented at BOA, BMCE Capital, Maghrebail, Salafin and BTI Bank while a roadmap is in the process of being established. One of the CSR Charter's initiatives is to ensure that a gender policy is implemented, underlining the Bank's commitment to gender equality.

Focus on women's financial education with the Bank participating in caravans to raise awareness about female entrepreneurship, auto-entrepreneur status the South Economic Women Initiative.

12 MedersatCom schools obtain the 'Green Pavilion' label as part of the 'eco-schools' programme of the Mohammed VI Foundation for Environmental Protection. The number of schools with the label now totals 25 schools.

Construction work completed on a MedersatCom school in Rwanda while plans are afoot to build a new school in Djibouti

Agreements signed between BMCE Bank Foundation and six AREF academies to build 120 preschool units i.e. 240 classrooms.

African Entrepreneurship Award has seen the funded projects and start-ups transformed into sustainable income-generating enterprises thanks to the prize money and support provided in the form of consulting and mentoring for the 46 winning entrepreneurs over the past 4 years, enabling them to invest in growing their businesses, create jobs and launch products and services with a high social impact.

Net income attributable to shareholders of the parent company

At 31 December 2018 by geographical region

Morocco 48%

Africa 46%

Europe 6%

AWARDS

• Wins the 'Best CSR Arabia' award for the second time in the Financial Services and Partnerships and Collaborations categories.

• Wins the 'Socially Responsible Bank of the Year 2018' award at the African Banker Awards ceremony held in South Korea.

• Named 'Top performer CSR 2018' by Vigeo Eiris, an international non-financial ratings agency, on launching the new Casablanca ESG10 equity index.

• First bank in Morocco to be OHSAS 18001-certified in occupational health, safety and well-being aspects.

• ISO 14001 certification for the seventh consecutive year for environmental standards and ISO 50001 certification for energy efficiency.

• Wins the 'Best Customer Service Award' for the second consecutive year in 2019.

Forthcoming Meeting

Monday 2 April 2019 at 10:30

Meeting with Analysts and the Press:

BMCE Bank Group's 2018 Annual Results Presentation

FINANCIAL COMMUNICATION

www.ir-bmcebankofafrica.ma

Tel: +212 522 46 28 06 - Fax: +212 520 20 50 54 - E-mail: relationsinvestisseurs@bmcebank.co.ma