BMED.L Regulatory News (BMED)

29 Jun 2007 12:58

Banque Marocaine Du Commerce Exteri29 June 2007 BMCE BANK CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31st, 2006 CONSOLIDATED BALANCE SHEET AS OF DECEMBE 31ST, 2006 Assets 2006 2005CASH, CENTRAL BANKS, TREASURY, GIRO ACCOUNTS 7,833,528 7,090,275LOANS TO CREDIT INSTITUTIONS AND EQUIVALENT 14,324,319 12,735,302 . Demand 3,645,771 3,249,114 . Time 10,678,548 9,486,188LOANS AND ADVANCES TO CUSTOMERS 39,411,120 31,296,160 . Cash and consumer loans 19,248,713 16,540,796 . Equipment loans 8,002,998 6,452,259 . Mortgage loans 7,747,591 5,102,795 . Other loans 4,411,818 3,200,310LEASING AND RENTED OPERATIONS 5,631,331 5,108,321ADVANCES ACQUIRED BY FACTORING 742,716 679,767TRANSACTION AND MARKETABLE SECURITIES 11,721,359 12,699,680 . Treasury bonds and equivalent securities 2,877,869 6,932,730 . Other debt 1,572,015 2,954,398securities . Title deeds 7,271,475 2,812,552OTHER ASSETS 1,536,308 2,169,213INVESTMENT SECURITIES 27 27 . Treasury bonds and equivalent securities 27 27 . Other debt - -securitiesEQUITY INVESTMENTS OF NON CONSOLIDATED AFFILIATES 1,635,969 2,043,787SECURITIES CONSOLIDATED BY THE EQUITY METHOD 184,634 131,795 . Financial companies 184,634 131,795 . Other companies - -SUBORDINATED LOANS - -INTANGIBLE FIXED ASSETS 140,640 93,697TANGIBLE FIXED ASSETS 1,840,684 1,528,350GOODWILL ON ACQUISITION 21,297 24,490TOTAL ASSETS 85,073,932 75,600,864 In thousand MAD Liabilities 2006 2005CENTRAL BANKS, TREASURY, GIRO ACCOUNTS - -LIABILITIES TO CREDIT INSTITUTIONS AND EQUIVALENT 5,013,327 5,903,568 . Demand 690,716 1,337,780 . Time 4,322,611 4,565,788CUSTOMER DEPOSITS 67,618,132 57,757,246 . Demand deposits 34,392,889 28,257,181 . Savings deposits 10,985,108 9,792,974 . Time deposits 17,794,638 15,196,824 . Other deposits 4,445,497 4,510,267DEBT SECURITIES ISSUED 1,076,635 765,647 . Negotiable debt securities 816,807 506,217 . Bond loans 259,828 259,430 . Other debt securities issued - -OTHER LIABILITIES 2,818,211 3,183,172GOODWILL ON ACQUISITION - -CONTINGENT LAIBILITIES 69,823 99,171REGULATED PROVISIONS - -SUBSIDIES, ASSIGNED PUBLIC FUNDS AND SPECIAL GUARANTEE FUNDS - 100SUBORDINATED LOANS 1,020,368 1,001,358PREMIUMS RELATED TO CAPITAL 4,281,611 3,943,593CAPITAL 1,587,514 1,587,514SHAREHOLDERS UNPAID-UP CAPITAL (-) - -CONSOLIDATED RESERVES, REVALUATION RESERVE, 682,951 582,414 UNREALISED EXCHANGE GAINS/LOSSES DIFFERENTIALS ANDDIFFERENCE IN EQUITY METHOD . Group share 343,870 247,699 . Minority interests 339,081 334,715NET INCOME FOR THE YEAR (+/-) 905,360 777,081 . Group share 834,069 736,014 . Minority interests 71,291 41,067TOTAL LIABILITIES 85,073,932 75,600,864 In thousand MAD OFF BALANCE SHEET AS OF DECEMBE 31ST, 2006 Off- Balance Sheet 2006 2005GIVEN COMMITMENTS 12,344,386 16,379,110Financing commitments on behalf of credit institutions and equivalent 37,985 340,518Financing commitments on behalf of customers 5,058,687 8,069,809Guarantee commitments given to credit institutions and 2,075,608 2,730,804equivalentGuarantee commitments given to customers 5,172,106 5,237,979Securities repos purchased - -Other securities to be delivered - -RECEIVED COMMITMENTS 2,162,392 2,012,144Financing commitments received from credit institutions and equivalent - 172,144Guarantee commitments received from credit institutions and equivalent 2,130,545 1,381,872Guarantee commitments received from state and various guarantee bodies 31,847 458,128Securities repos sold - -Other securities to be received - - In thousand MAD CONSOLIDATED INCOME STATEMENT AS OF DECEMBE 31ST, 2006 2006 2005BANK OPERATING REVENUES 7,035,036 4,559,326Interests and assimilated revenues on transactions with credit institutions 377,398 268,367Interests and assimilated revenues on transactions with customers 2,238,321 2,405,892Interests and assimilated revenues on debt securities 240,419 445,534Revenues on title deeds 84,119 94,327Revenues from leased and rented fixed assets 2,310,543 -Fees on provided services 638,474 523,021Other banking revenues 1,145,762 822,185BANK OPERATING EXPENSES 3,428,543 1,457,805Interests and assimilated expenses on transactions with credit institutions 317,461 244,650Interests and assimilated expenses on transactions with customers 854,883 806,917Interests and assimilated expenses on debt securities issued 45,916 59,227Expenses on leased and rented fixed assets 1,831,945 -Other banking expenses 378,338 347,011NET BANKING INCOME 3,606,493 3,101,521Non-Banking operating revenues 173,129 265,381Non-Banking operating expenses 12,181 42,104GENERAL OPERATING EXPENSES 2,125,664 1,842,173Staff expenses 1,055,029 939,087Tax expenses 41,402 37,642External expenses 801,029 694,783Other general operating expenses 6,010 8,037Allowances for depreciation and provisions for tangible fixed assets 222,194 162,624ALLOWANCES FOR AMORTISATION ON GOODWILL ACQUISITION 8,999 6,641GOODWILL ACQUISITION WRITE BACKS - -ALLOWANCES FOR PROVISIONS AND LOAN LOSSES 867,746 860,794Allowances for non performing loans and commitments 584,945 519,016Loan losses 221,060 228,226Other allowances for provisions 61,741 113,552PROVISION WRITE-BACKS AND RECOVERY ON AMORTISED DEBTS 603,430 532,786Provision write-backs on non performing loans and commitments 446,396 343,500Recovery of amortised debts 34,281 37,418Other provision write-backs 122,753 151,868CURRENT INCOME 1,386,462 1,147,976Non-current revenues 636 245Non-current expenses 29,682 55PRE-TAX EARNINGS 1,339,416 1,148,166Corporate tax 456,256 383,758NET EARNINGS OF COMPANIES ACCOUNTED FOR BY FULL CONSOLIDATION 883,160 764,408SHARE IN NET INCOME OF COMPANIES ACCOUNTED FOR BY EQUITY METHOD 22,200 12,673Financial companies 22,200 12,673Other companies - -NET EARNINGS FOR THE YEAR 905,360 777,081Group's equity 834,069 736,014Minority interests 71,291 41,067 In Thousand MAD CONSOLIDATED MANAGEMENT BALANCE STATEMENTS AS OF DECEMBE 31ST, 2006 Earnings formation table 2006 2005+ Interest and equivalent revenues 2,791,203 3,118,056- Interests and equivalent expenses 1,216,998 1,112,492INTEREST MARGIN 1,574,205 2,005,564+ Revenues from leased and rented fixed assets 2,310,543 -- Expenses on leased and rented fixed assets 1,831,945 -PROFIT FROM LEASING AND RENTING OPERATIONS 478,598 -Fess received 736,399 641,032Fees paid 66,926 65,999MARGIN ON FEES 669,473 575,033Income from operations on transaction securities - -Income from operations on marketable securities 687,877 304,863Income from exchange transactions 110,918 95,698Income from derivatives transactions - 8,179 28,165INCOME FROM MARKET TRANSACTIONS 790,616 428,726Other miscellaneous banking revenues 168,652 158,017Other miscellaneous banking expenses 75,051 65,819NET BANKING INCOME 3,606,493 3,101,521Net income from equity investments 110,477 246,282Other non-banking operating revenues 46,808 34,414Other non-banking operating expenses - 6,936 - 33,569General operating expenses 2,125,664 1,842,173GROSS OPEARTING INCOME 1,631,178 1,506,475Allowances for non performing loans and commitments (net of write-backs) - 322,047 - 370,439Other allowances net of provisions write-backs 68,330 18,581Allowances net of write backs on goodwill acquisition - 8,999 - 6,641amortisationCURRENT INCOME 1,368,462 1,147,976NON-CURRENT INCOME - 29,046 190Tax 456,256 383,758NET EARNINGS OF COMPANIES ACCOUNTED FOR BY FULL CONSOLIDATION 883,160 764,408SHARE IN NET INCOME OF COMPANIES ACCOUNTED FOR BY EQUITY METHOD 22,200 12,673Financial companies 22,200 12,673Other companies - -NET EARNINGS FOR THE YEAR 905,360 777,081Group's equity 834,069 736,014Minority interests 71,291 41,067 Cash-Flow 2006 2005NET EARNINGS FOR THE YEAR 905,360 777,081Allowances for depreciation and provisions for intangible and tangible fixed 175,656 143,830assetsAllowances for provisions for equity investments depreciation 13,776 29,388Allowances for provisions for general - -risksAllowances for regulated provisions 2,058 849Non-current allowances 1,000 400Provision write-backs 18,731 55,862Capital gains on disposals of intangible and tangible fixed 5,177 1,535assetsCapital losses on disposals of intangible and tangible fixed 21 1,386assetsCapital gains on disposals of equity investments 126,321 230,967Capital losses on disposals of equity investments 5,244 8,535Write-backs of investment subsidies received - -FINANCING CAPACITY 952,886 673,105Dividend distributed 368,557 305,457CASH-FLOW 584,329 367,648 In Thousand MAD STATUTORY AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31ST 2006 This is a free translation into english of the Statutory Auditor's report on theconsolidated financial statements issued in the french language and is providedsolely for the convenience of english speaking readers. The Statutoruy Auditor'sreport on the consolidated financial statements includes informationspecifically required by Moroccan law in all audit reports. This report on the consolidated financial statements should be read inconjunction with, and construed in accordance with, Moroccan law andprofessional auditing standards applicable in Morocco. We have audited the consolidated balance sheet of the Group "Banque Marocainepour le Commerce Exterieur" (BMCE-BANK) for the year ended December 31st 2006,the consolidated income statement, the consolidated cash flow statement andnotes to consolidated financial statements as attached to this report. Theseconsolidated financial statements have been prepared under management ofBMCE-BANK responsibility. Our role is to express an opinion on theseconsolidated financial statements based on our audit. We conducted our audit in accordance with the professional standards applicablein Morocco. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the consolidated financial statements arefree of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the consolidated financialstatements. An audit also includes assessing the accounting principles used andsignificant estimates made by the management, as well as evaluating the overallconsolidated financial statements presentation. We believe that our auditprovides a reasonable basis for our opinion. In our opinion, the consolidated financial statements as referred above ofBMCE-BANK for the year ended December 31st 2006, give, in all their materialaspects, a true and fair view of the assets, liabilities and financial positionof the group, and of the consolidate income of its operation and cash flows forthe year ended December 31st 2006, in accordance with accounting principlesdescribed in the notes of financial statements. Casablanca, May 28th , 2007 The Auditors KPMGJamal Saad EL IDRISSIPartner ERNST & YOUNGAli BENNANIPartner Consolidated CASH FLOW STATEMENT AS OF DECEMBER 31st, 2006 2006 20051. (+) Operating income received from banking operations 6 671 907 3 996 7832. (+) Recovery of amortised debts 34 281 37 4183. (+) Non-banking revenues received 173 765 265 3814. ( -) Banking operating expenses paid 3 742 236 1 782 8865. ( -) Non-banking operating expenses paid 41 863 42 1046. ( -) General operating expenses paid 1 903 470 1 679 5497. ( -) Corporate tax paid 456 256 331 826I. NET CASH FLOWS FROM THE INCOME STATEMENT 736 128 463 217 Change in :8. ( + ) Loans to credit institutions and equivalent - 1 589 017 - 1 678 9129. ( + ) Loans to customers - 8 114 960 - 4 516 65110.( + ) Debt and marketable securities 978 321 1 584 09411.( + ) Other assets 569 956 - 523 43512.( + ) Fixed assets leased and rented out - 523 010 - 643 78813.( + ) Liabilities to credit institutions and equivalent - 890 241 1 166 31714.( + ) Customer deposits 9 860 886 3 832 00915.( + ) Debt securities issued 310 988 - 253 90416.( + ) Other liabilities - 578 197 637 669II. BALANCE OF CHANGES IN OPERATING ASSETS AND LIABILITIES 24 726 - 396 601III. NET CASH FLOWS FROM OPERATING ACTIVITIES ( I + II ) 760 854 66 61617.(+) Revenues from equity investments 593 674 1 281 30218.(+) Revenues from disposals of intangible and tangible fixed assets 20 081 30 28819.(-) Aquisitions of equity invetsments 212 894 92 23220.(-) Acquisitions of intangible and tangible fixed assets 317 118 278 67521.(+) Interests received 240 419 468 21622.(+) Dividends received 122 710 94 327IV. NET CASH FLOWS FROM INVESTMENT ACTIVITIES 446 872 1 503 226 Change in :23.(+) Subsidies, public funds and special - - guarantee funds received 24.(+) Issue of subordinated debts - 500 00025.(+) Stock issues26.( -) Repayment of shareholders equity and equivalent 27.( -) Interests paid 45 916 78 66128.( -) Dividends paid 368 557 305 457V. NET CASH FLOWS FROM FINANCING ACTIVITIES - 414 473 115 882VI.NET CHANGE IN CASH ( III + IV + V ) 793 253 1 685 724VII.CASH & CASH EQUIVALENT AT BEGINNING OF YEAR 7 090 275 5 404 551VIII .CASH & CASH EQUIVALENT AT YEAR-END 7 883 528 7 090 275 In Thousand MAD LIST OF CONSOLIDATED COMPANIES AS OF DECEMBER 31st, 2006 Contribution to % of % of consolidated Method of Name Address Share Capital control interests income consolidation MAROC FACTORING 243, Bd 15 000 000 95.00% 95.00% 10 099 Full Consolidation (F.C) Mohammed V CasablancaSALAFIN ZENITH 103 000 000 97.09% 97.09% 66 863 F.C MILLENIUM Immeuble 8 Sidi Maarouf CasablancaMAGHREBAIL 45, Bd My 102 532 000 35.90% 35.90% 19 479 F.C Youssef CasablancaBMCEINTERNATIONAL MADRID • 18 030 000 87.50% 87.00% 7 949 F.C ESPAGNEPALIER BMCECAPITAL Tour BMCE 100 000 000 100.00% 100.00% 1 332 F.C BANK RP Hassan II CasaBMCE CAPITALBOURSE Tour BMCE 10 000 000 100.00% 100.00% 21 164 F.C BANK RP Hassan II CasaBMCE CAPITALGESTION Tour BMCE 5 000 000 100.00% 100.00% 26 438 F.C BANK RP Hassan II CasaLCB BRAZZAVILLE Fcfa 4 000 000 25.00% 25.00% 7 419 F.C CONGO 000Medi CapitalPLC Londres Pounds 5 000 100.00% 100.00% -47 798 F.C 000CFM 5/7 Rue 114 862 500 33.33% 33.33% 6 384 Equity Method (E.M) Ibnou Toufail CasablancaACMAR 37, Bd 50 000 000 20.00% 20.00% 1 275 E.M Abdellatif ben KaddourBDM BAMAKO MALI Fcfa 3 759 560 20.73% 27.38% 13 873 E.M 000 LIST OF COMPANIES included AND excluded from the consolidation from January 1stto 31st December 2006 Name Adress Included companiesMedi Capital Bank PLC London, United KingdomExcluded companies LIST OF COMPANIES left outside the consolidation LIST AS OF DECEMBER 31st, 2006 Name Last Net % of % of Last result Reasons shareholders' accounting control interests available behind the equity value of exclusion available shares from the held consolidation list Martco Not - 20% 20% zero net Disponible accounting valueEurochequeMaroc Not 144 29% 29% 598559.36 Part in the Disponible net situation below the fixed threshold (in (Year end- liquidation) 2001)Docuprint 8342728.54 4000 100% 100% 2855672.29 Part in the net situation below the fixed threshold (Year-end (Year- end 2005) 2001)Consultitres 2645091.38 500 50% 50% 67397.61 Part in the net situation below the fixed threshold (Year-end (Year- end 2001, in 2001) liquidation) DETAILS OF OTHER ASSETS AS OF DECEMBER 31ST, 2006 HEADING AMOUNT OPTIONAL INSTRUMENTS 76,551Miscellaneous transactions on 3,226 Coupons receivablesecurities (debit)Sums settled to be recovered from 69,887 Losses on exchange BIRD (state)securities issuersOther settlement accounts 3,438 Premiums paid on exchange optionconcerning transactions on securitiesOTHER DEBTORS 717,415- Sums due by the state 426,106 Deductible VAT, advances corp Tax, TPPRF state and exchange loss receivable from the treasury- Sums due by provident companies 9,682- Receivable from staff 13,864 Advances to staff- Receivable for non-banking 118,095 Credits held by subsidiaries onservices non banking services- Other debtors 149,668 Deposits and guarantees and Directors' sharesOTHER SECURITIES AND ASSETS 6,086- Other securities and assets 6,086 Stock of suppliesCURRENCIES ADJUSTMENT ACOUNTS 37,506CURRENCIES AND SECURITIES 24,830DISCREPANCY ACCOUNTS (DEBIT)Potential losses on hedging -transactions non settledDiffered losses on hedging 24,830transactions non settledDEFFERED EXPENSES 3,516 Capital increase and establishment feesLIAISON ACCOUNTS BETWEEN THE HEAD 149,865OFFICE, BRANCHES AND AGENCIES INMOROCCO (DEBIT)Accrued income and prepayment 132,014 - Accrued income 126,488 - Prepayment 5,526Transitory accounts 269,593Non performing loans onmiscellaneous transactionsProvisions for non performing 91,402loans on miscellaneoustransactionsDiffered taxes 27,530TOTAL 1,538,308 In Thousand MAD LOANS TO CREDIT INSTITUTIONS AND EQUIVALENT AS OF DECEMBER 31ST, 2006 Other credit Claims Bank Al-Maghrib institutions and Treasury and Banks in equivalent in Foreign credit Total Total Giro accounts Morocco Morocco institutions 2006 2005ORDINARY ACCOUNTS IN 6 950 793 283 160 481 750 1 696 005 9 411 708 9 313 427DEBITSECURITIES RECEIVED AS 322 921 0 322 921 300 173PLEDGES- Overnight 0 0- Time 322 921 322 921 300 173SHORT-TERM LOANS 1 230 000 421 234 700 155 3 079 516 5 430 905 3 872 369- Overnight 1 230 000 130 900 682 806 2 043 706 1 000 000- Time 290 334 17 349 3 079 516 3 387 199 2 872 369FINANCIAL LOANS 764 623 3 035 080 317 785 4 117 498 3 410 940OTHER LOANS 2 895 759 0 7 850 2 903 808 2 921 746RECEIVABLES ACCRUED 19 456 1 750 21 206 6 922INTERESTNON PERFORMING LOANS TOTAL 11 096 008 1 793 688 4 216 995 5 101 156 22 207 847 19 825 577 In Thousand MAD LOANS AND ADVANCES TO CUSTOMERS AS OF DECEMEBR 31st , 2006 Claims Private sector Financial Non financial Other Total Total Public sector companies companies customers 2006 2005SHORT-TERM LOANS 2,074,888 859,593 10,976,514 1,326,910 15,237,905 13,892,950- Deposits accounts 1,807,152 259,593 5,378,417 693,894 8,139,056 8,640,641in debit- Commercial loans in 0 1,614,625 16,716 1,631,341 1,239,260Morocco- Export loans 0 243,546 243,546 618,143- Other cash loans 267,736 600,000 3,739,926 616,300 5,223,962 3,394,906CONSUMER LOANS 1,138 37,482 3,614,734 3,653,354 2,616,564EQUIPMENT LOANS 698,502 7,095,358 113,014 7,906,874 6,418,544MORTGAGE LOANS 167,286 183,202 7,389,078 7,739,566 5,108,958OTHER LOANS 21,843 1,873,847 2,538,501 96,513 4,330,704 2,400,586ADVANCES ACQUIRED BY 742,716 679,767FACTORINGRECEIVABLE ACCRUED 399 921 1,320 80,433INTERESTNON PERFORMING LOANS 5,378 7,822 227,386 300,811 541,397 778,125- Substandard loans 6 5,157 54,640 59,803 12,313- Doubtful loans 46 18,579 66,668 85,293 16,302- Loss Loans 5,378 7,770 203,650 179,503 396,301 749,510 TOTAL 2,969,035 2,541,264 21,055,443 12,841,981 40,153,836 31,975,927 In Thousand MAD BREAKDOWN OF TRANSACTION & MARKETABLE SECURITIES AND INVESTMENT SECURITIESAS OF DECEMBER 31st , 2006 Credit Private issuers institutions and Total Total equivalent Public issuers Financial Non financial 2005 2005 QUOTED SECURITIES 1,477,838 2,408,118 6,615,392 204 10,471,908 10,489,888- Treasury bonds & - 2,408,118 2,408,118 6,495,901equivalent securities- Bonds 47,500 - 47,500 - - Other debts securities 600,029 - 144,226 0 744,255 1,181,435- Title deeds 800,309 - 6,471,166 204 7,271,679 2,812,552 UNQUOTED SECURITIES 550,724 548,338 0 97 346 1,196,408 2,131,305 - Treasury bonds & - 422,820 422,820 357,440equivalent securities- Bonds 0 125,518 0 0 125,518 156,368 - Other debt securities 550,724 - 97,346 648,070 1,617,497- Title deeds - - - - ACCRUED INTEREST 53,399 - 53,399 78,487TOTAL 2,051,961 2,956,456 6,615,392 97,550 11,721,359 12,699,680 In Thousand MADEQUITY INVESTMENTS AS OF DECEMEBR 31st , 2006 Name of the issuing Sector of activity Number of Equity Overall company shares Share Capital holding acquisition as % price Provisions Net Book ValueEquity Holdingsaccounted for by equitymethodsBanque de Developpement Foreign credit 102 926 3 759 560 000 CFA 27.38 127 085 000,00 127 085 000,00du Mali institutionSociete Casa Finance Financial 382 876 114 862 500 33.33 47 520 000,00 47 520 000,00Market institutionACMAR Insurance & 100 010 50 000 000 20.00 10 029 000,00 10 029 000,00 ServiceEquity holdings 184 634 000,00 0.00 184 634 000,00accounted by equitymethods EQUITY HOLDINGSRMA Watanya Insurance 1 774 869 1 774 400 800 10.00 700 305 306,63 700 305 306,63Risma Tourism 219 312 489 077 000 4.48 34 881 710,00 34 881 710,00Tanger Zone Franche Development 135 000 105 000 000 12,86 13 500 000,00 13 500 000,00 companyCentre Monetique Electronic payment 110 000 98 200 000 11.2 11 000 000,00 11 000 000,00Interbancaire managementEMAT Holding company 60 000 30 000 20.00 6 000 000,00 6 000 000.00 0,00Moroccan information Real Estate 12.28 5 650 000,00 5 650 000,00Techno Parc Cie management techno park 56 500 46 000Global Network Systems Data processing 26 500 26 500 000 10.00 2 650 000,00 742 000.00 1 908 000,00Ste Conseil Ingenierie Engineering 36 668 18 772 000 19.53 2 000 000,00 2 000 000,00et Developpement consultantSte d'amenagement du Development 10 000 60 429 000 1.65 1 000 000,00 1 000 000,00Parc Industrie companyMARTKO( Maghreb Arab Financial 12 000 600 000 USD 20.00 970 638,00 970 638.00 0,00Trading Cdegrees) institutionSte IPE Publishing & 4 000 4 000 000 10.00 400 000,00 400 000,00 printingSte Recours Debt collection 3 750 2 500 000 15.00 375 000,00 375 000,00Eurocheque Maroc Means of payment 1 436 5 000 000 28.72 143 900,00 143 900,00Titles held by 57 293 000,00 57 293 000,00subsidiariesEquity Holdings 836 169 554.83 7 712 638.00 828 456 916,63SECURITIES OF RELATEDCOMPANIESMabanicom SCI 10 000 10 000 000 100.00 29 700 000,00 7 279 270.73 22 420 729,27Docuprint Service company 4 000 4 000 000 100.00 4 000 000,00 4 000 000,00BMCE Assurbank 14 250 1 500 000 95.00 1 425 000,00 1 425 000,00Ste Consultitres Mutual fund 500 1 000 000 50.00 500 000,00 500 000.00 0,00 managementEquity holdings in 35 625 000,00 7 779 270.73 27 845 729,27related companies SECURITIES ACTIVITIESOF THE PORTFOLIOE.S.F.G Foreign credit 707 000 479 086 000 EUR 1.27 153 559 892,47 153 559 892,47 institutionE.S.I.H Foreign credit 467 250 260 400 000 EUR 1.79 152 915 585,16 152 915 585,16 institutionFINAFUND USA Investment fund 14 000 81 525 000 USD 17.5 118 391 700,00 118 391 700,00FINAFUND EUROPE Investment fund 14 000 40 000 000 EUR 17.5 77 980 315,40 77 980 315,40UBAE ARAB Italian Bank Foreign credit 48 220 122 319 560 EUR 4.34 73 801 824,86 73 801 824,86 institutionPROPARCO Multinational 222 750 142 560 000 EUR 2.5 39 534 702,82 39 534 702,82 credit institutionFonds Espagnol Marco Investment fund 19 436 7 401 000 EUR 2.63 19 450 403,22 13 275 867.00 6 174 536,22Polo Invest S.C.RFonds d'Investissement Investment fund 3 25 000 000 USD 12.00 18 193 868,68 18 193 868,68Capital MoroccoAFREXIM Bank (African Foreign credit 30 146 601 000 USD 0.2 2 536 965,00 2 536 965,00Import Export) institutionFonds Monetaire Arabe Financial 54 500 000 000 USD 0.05 2 536 965,00 2 536 965,00(Arab Trade Financing institutionProgram)Fonds d'Investissement Investment fund 2 687 500,00 2 687 500,00de l'orientalFIGOREST Investment fund 250 000,00 250 000,00Ste CIVILE FIN FUND Equity investment 500 100 000 50.00 50 000,00 50 000,00Securities activities of the portfolio 661 889 722.61 13 275 867.00 648 613 855,61OTHER EQUITY HOLDINGSSte Nationale des Road 16 000 3 467 628 500 0.22 7 112 000,00 2 218 433.00 4 893 567,00Autoroutes infrastructureLa cellulose du Maroc Paper pulp 52 864 650 484 000 0.81 3 393 433,00 3 393 433,00SMAEX Insurance & 16 900 37 500 000 4.51 1 690 000,00 1 690 000,00 serviceFRUMAT Agri-industry 4 000 13 000 000 3.08 1 450 000,00 1 450 000.00 0,00Ste Immobiliere siege Real estate 12 670 19 005 000 6.67 1 267 000,00 1 267 000,00GPBMBANK AL AMAL Credit institution 9 710 500 000 000 0.19 971 000,00 971 000,00MAROCLEAR Central custodian 803 20 000 000 4.02 803 000,00 803 000,00GECOTEX Industry 5 000 10 000 000 5.00 500 000,00 500 000,00Societe ALLICOM Maroc Industry 20 000 000 2.5 500 000,00 500 000.00 0,00Dar Addamane Guarantee bodies 9 610 75 000 000 0.64 480 500,00 480 500,00Fonds de Soutien Support actions 4 805 500 000 000 0.05 240 250,00 240 250,00Actions BAASINCOMAR Food-industry 494 37 440 000 0.13 49 400,00 49 400,00SWIFT Service company 23 434 020 000 EUR 0.01 24 027,46 24 027,46CIE immobiliere Real estate 640 20 000 000 0.32 8 500,00 8 500,00Financiere Marocaine companyMeditelecom Telecommunication 2 8 333 368 000 0.00 200,00 200,00Mastercard 3 634 945 536,50 945 536,50Other Equity Holdings 19 434 846,96 4 168 433.00 15 266 413,96CURRENT ASSOCIATEDACCOUNTSMeditelecom 106 610 873,38 106 610 873,38EMAT 5 000 000,00 5 000 000,00Attachyid Wa Al Mabani 2 728 612,50 2 728 612,50MARTCO 1 500 000,00 1 500 000.00 0,00Siege G.P.B.M 1 446 419,60 1 446 419,60Allicom Maroc 552 000,00 552 000.00 0.00Other equivalent uses 117 837 905,48 2 052 000.00 115 785 905,48TOTAL 1 855 591 029.68 34 988 208.73 1 820 602 820.95 ASSETS LEASED UNDER FINANCE OR OPERATING LEASES WITH OPTION TO PURCHASEFROM JANUARY 1ST TO DECEMEBR 31st , 2006 Depreciation Gross amount at Acquisitions Disposals or Depreciation the beginning of during the withdrawals Gross amount during the Total Assets the year year during the year at year end year Depreciation ASSETS LEASED UNDER FINANCE 9 124 875 2 720 169 1 164 562 10 680 482 1 861 543 4 939 532LEASING OR STANDARD LEASEAGREEMENTS WITH OPTION TOPURCHASEINTANGIBLE ASSETS LEASED UNDERFINANCE LEASINGLEASING CONTRACTS FOR PLANT & 7 553 358 2 451 449 941 389 9 063 418 1 752 932 4 557 947EQUIPMENT- Leasing contracts for plant & 158 862 301 533 96 817 363 578equipment in progress- Leasing contracts for plant & 7 394 496 2 149 916 844 572 8 699 840 1 752 932 4 557 947equipment leased- Leasing contracts for plant &equipment non-leased aftercancellationLEASING CONTRACTS FOR REAL ESTATE 1 251 365 170 981 201 392 1 220 954 108 611 381 585- Leasing contracts for real 59 354 90 689 45 350 104 693estate in progress- Leasing contracts for real 1 192 011 80 292 156 042 1 116 261 108 611 381 585estate leased- Leasing contracts for realestate non-leased aftercancellationRENTAL PAYMENTS PENDING 46 752 8 362 1 795 53 319RESTRUCTURED RENTAL PAYMENTSUNPAID RENTAL PAYMENTS 57 642 34 252 13 020 78 874DOUBTFUL LOANS 215 758 55 125 6 966 263 917ASSETS LEASED UNDER STANDARDLEASE AGREEMENTSTangible assets leased understandard leased agreementsIntangible assets leased understandard leased agreementsRental payment pendingRestructured rental paymentsUnpaid rental paymentsDoubtful rentalTOTAL 9 124 875 2 850 716 1 164 562 10 680 482 1 861 543 4 939 532 In Thousand MAD ASSETS LEASED UNDER FINANCE OR OPERATING LEASES WITH OPTION TO PURCHASEFROM JANUARY 1ST TO DECEMEBR 31st , 2006 Provisions Assets Additional provisions Provisions Amount at during the year write-backs Total Provisions year end ASSETS LEASED UNDER FINANCE LEASING OR STANDARD 53 871 140 070 109 619 5 631 331LEASE AGREEMENTS WITH OPTION TO PURCHASEINTANGIBLE ASSETS LEASED UNDER FINANCE LEASINGLEASING CONTRACTS FOR PLANT & EQUIPMENT 8 522 4 496 949- Leasing contracts for plant & equipment in 363 578progress- Leasing contracts for plant & equipment leased 8 522 4 133 371- Leasing contracts for plant & equipmentnon-leased after cancellation LEASING CONTRACTS FOR REAL ESTATE 839 369- Leasing contracts for real estate in progress 104 693- Leasing contracts for real estate leased 734 676- Leasing contracts for real estate non-leasedafter cancellationRENTAL PAYMENTS PENDING 53 319RESTRUCTURED RENTAL PAYMENTSUNPAID RENTAL PAYMENTS 78 874DOUBTFUL LOANS 53 871 140 070 101 097 162 820ASSETS LEASED UNDER STANDARD LEASE AGREEMENTSTangible assets leased under standard leasedagreementsIntangible assets leased under standard leasedagreementsRental payment pendingRestructured rental paymentsUnpaid rental paymentsDoubtful rentalTOTAL 53 871 140 070 109 619 5 631 331 In Thousand MAD TANGIBLE AND INTANGIBLE FIXED ASSETS AS OF DECEMEBR 31st , 2006 Gross amount at Disposals or the beginning of Acquisitions during withdrawals Gross amount at Assets the year the year during the year year end INTANGIBLE FIXED ASSETS 165 332 75 418 250 240 500 Leasehold rights 28 458 216 250 28 424 Investment in research and development 1 134 1 134 Other operating intangible fixed assets 135 740 75 202 - 210 942 Non-operating intangible fixed assetsTANGIBLE FIXED ASSETS 3 203 240 514 796 35 765 3 682 271Operating buildings 768 761 112 109 11 704 869 166 . Operating land 107 776 62 826 11 254 159 348 . Operating buildings, Offices 660 985 49 283 450 709 818 . Operating buildings, staff housingOPERATING FURNITURE AND EQUIPMENT 1 336 071 226 087 7 076 1 555 082 . Operating office furniture 426 143 63 861 - 490 004 . Operating office equipment 266 774 61 124 2 028 325 870 . Computer equipment 579 799 67 557 237 647 119 . Operating vehicles 17 439 25 448 4 811 38 076 . Other operating equipment 45 916 8 097 54 013OTHER OPERATING TANGIBLE FIXED ASSETS 808 646 84 600 165 893 081NON-OPERATING TANGIBLE FIXED ASSETS 289 762 92 000 16 820 364 942 . Non-operating land 87 097 24 285 1 616 109 766 . Non-operating buildings 99 674 59 663 15 204 144 133 . Non-operating furniture and equipment 25 707 2 602 28 309 . Other non-operating tangible fixed 77 284 5 450 82 734assetsTOTAL 3 368 572 590 214 36 015 3 922 771 In Thousand MAD TANGIBLE AND INTANGIBLE FIXED ASSETS AS OF DECEMEBR 31st , 2006 Depreciation and/or provisions Assets Depreciation Depreciation on Net amount at provisions at the Allowances for fixed assets the end of the beginning of the year the year withdrawn Total year INTANGIBLE FIXED ASSETS 71 635 28 267 42 99 860 140 640 Leasehold rights 28 424 Investment in research and 1 134development Other operating intangible fixed 71 635 28 267 42 99 860 111 082assets Non-operating intangible fixedassetsTANGIBLE FIXED ASSETS 1 674 890 175 396 8 699 1 841 587 1 840 684Operating buildings 166 657 23 377 86 189 948 679 218 . Operating land - 159 348 . Operating buildings, 166 657 23 377 86 189 948 519 870 Offices . Operating buildings, staff housingOPERATING FURNITURE AND EQUIPMENT 915 107 100 140 6 852 1 008 395 546 687 . Operating office furniture 206 693 25 577 1 807 230 463 259 541 . Operating office equipment 204 779 19 092 220 223 651 102 219 . Computer equipment 454 089 48 134 237 501 986 145 133 . Operating vehicles 15 466 2 117 4 588 12 995 25 081 . Other operating equipment 34 080 5 220 - 39 300 14 713OTHER OPERATING TANGIBLE FIXED ASSETS 539 893 39 588 86 579 395 313 688NON-OPERATING TANGIBLE FIXED ASSETS 53 233 12 291 1 675 63 849 301 093 . Non-operating land - 109 766 . Non-operating buildings 32 202 6 866 1 675 37 393 106 740 . Non-operating furniture and 13 522 2 215 15 737 12 572 equipment . Other non-operating tangible 7 509 3 210 10 719 72 015 fixed assetsTOTAL 1 746 525 203 663 8 741 1 941 447 1 981 324 In Thousand MAD LAIBILITIES TO CREDIT INSTITUTIONS & EQUIVALENTS AS OF DECEMEBR 31st , 2006 Bank Al-Maghrib, Other credit Treasury and institutions Credit giro current Banks in and equivalent institutions account Morocco in Morocco abroad Total 2006 Total 2005 Debts ORDINARY CREDIT ACCOUNTS - 255 384 2 916 277 492 535 794 1 261 070ORDINARY CREDIT ACCOUNTS - - 1 221 668 - Overnight - - - - Time - 1 221 668CASH BORROWINGS 79 492 89 860 1 331 229 609 548 2 110 129 2 470 100 - Overnight 84 871 84 871 - - Time 79 492 4 989 1 331 229 609 548 2 025 258 2 470 100FINANCIAL BORROWINGS 111 365 1 696 426 55 159 329 633 2 192 583 823 764OTHER DEBTS 19 453 100 969 2 527 13 136 136 085 107 081PAYABLE ACCRUED INTERESTS 6 320 19 241 - 13 175 38 736 19 885TOTAL 137 138 2 161 880 1 391 833 1 242 984 5 013 327 5 903 568 In Thousand MAD CUSTOMER DEPOSITS AS OF DECEMEBR 31st , 2006 Private sector Financial Non financial Total Total Deposits Public sector companies companies Other companies 2006 2005 Demand credit accounts 1 501 967 1 739 013 8 083 384 23 068 525 34 392 889 28 068 167Saving accounts 10 985 108 10 985 108 9 792 974Time deposits 2 349 535 2 599 900 4 445 715 8 155 638 17 550 788 13 655 744Other credit accounts (*) 2 908 301 448 538 266 465 822 193 4 445 497 6 103 153Payable accrued interests 24 255 19 100 49 200 151 295 243 850 137 208 TOTAL 6 784 058 4 806 551 12 844 764 43 182 759 67 618 132 57 757 246 In Thousand MAD (*) including PL 480 for KMAD 2 895 759 DETAILS OF OTHER LIABILITIES AS OF DECEMEBR 31st , 2006 LIABILITIES AMOUNT OPTIONAL INSTRUMENTS SOLD 6 470MISCELLANEOUS TRANSACTIONS ON SECURITIES 253 973OTHER CREDITORS 1 164 979State debt 758 147Social security and provident societies debt 78 888 Staff debt 98 003 Shareholders and partners debt 29 100 Supply of goods and services 119 735Other creditors 81 106 ACCRUAL ACCOUNTS 1 304 252Adjustment accounts of off-balance sheet transactionsCurrencies and securities differential accounts 111 574Income from hedging instruments -Liaison accounts between the head office, branches and Moroccan 15 839agenciesExpenses payable and prepaid income 121 032Other accruals 1 055 807TOTAL 2 729 674 In Thousand MAD PROVISIONS FROM JANUARY 1ST TO DECEMEBR 31st , 2006 PROVISIONS Amount Amount 2005 Allowances Write-backs Other changes 2006 PROVISIONS,DEDUCTED FROMASSETS ON: 2 469 563 582 929 332 957 - 131 570 2587 965 Loans to creditinstitutions andequivalent 2 065 556 517 218 251 107 - 119 438 2212 229 Loans andadvances tocustomers 31 443 373 31 816 Doubtful interest 28 849 27 031 1 816 Marketablesecurities 145 588 13 776 45 296 - 12 132 101 936 Equityinvestments andequivalent 198 127 51 562 9 523 240 166 Leased and rented fixedassets PROVISIONSRECORDED UNDERLIABILITIES 76 665 24 038 30 880 - 69 823 Provisions for risksfulfilment of commitments Provisions forexchange risks 15 564 17 038 30 880 1 722 Provisions forgeneral risks 45 845 45 845 Provisions forretirement pensions and similar obligations Contingentliabilities 15 256 7 000 22 256 TOTAL 2546 228 606 967 363 837 - 131 570 2657 788 In Thousand MAD SUBORDINATED DEBTS AS OF DECEMEBR 31st , 2006 Affiliated companies Credit Fiscal Fiscal institutions & Financial Non financial Other affiliated Year Year Headings Global Amount equivalents companies companies companies 2006 2005 Subordinated debts 1 000 000 20 000 145 000 316 000 1 000 000 1 000 000Accrued interests 20 368 1 358 In Thousand MAD DETAILS OF SHAREHOLDERS' EQUITY AS OF DECEMEBR 31st , 2006 SHAREHOLDERS' EQUITY- GROUP SHARE 7 047 064Beginning shareholder's equity 6 514 820Dividends distributed -299 455Change in capital 0Unrealised exchange gains/losses 10 241Other changes -12 611Consolidated earnings 834 069 In Thousand MAD FROM AGGREGATED TO CONSOLIDATED SHAREHOLDERS' EQUITY AS OF DECEMEBR 31st , 2006 Shareholders' Fiscal provision Social Deferred tax Deferred tax equity write backs Commitments Others liability assetsBMCE 6 611 171 73 358 0 - 29 054 0Full ConsolidationBMCE CAPITAL 78 176 0BMCE CAPITAL BOURSE 66 441 1 088 -381BMCE CAPITAL GESTION 34 091 700 -245SALAFIN 248 525 12 331 92 633 -38 441BMCE INTERNATIONALE 270 660MAROC FACTORING 88 753LCB 104 978 0 0 0 0 0MAGHREBAIL 380 928 1 895 0 56 457 -20 423 0MediCapital 22 943Equity MethodBDM 464 151ACMAR 49 476 1 111 0 -440 0CFM 142 575TOTAL 8 562 868 90 483 149 090 -88 984 0 In Thousand MAD FROM AGGREGATED TO CONSOLIDATED SHAREHOLDERS' EQUITY AS OF DECEMEBR 31st , 2006(cont'd) Restated Quota Consolidated shareholders' % in in net Value of Goodwill on shareholders equity Capital worth securities acquisition Others equity BMCE 6 655 475 100,00% 6 655 475 6 655 475Full ConsolidationBMCE CAPITAL 78 176 100,00% 78 176 100 000 -21 824BMCE CAPITAL BOURSE 67 148 100,00% 67 148 17 475 2 618 52 291BMCE CAPITAL GESTION 34 546 100,00% 34 546 6 443 28 103SALAFIN 315 048 97,09% 305 880 100 000 205 880BMCE INTERNATIONALE 270 660 87,50% 236 828 190 383 1 674 48 119MAROC FACTORING 88 753 95,00% 84 315 16 209 68 106LCB 104 978 25,00% 26 245 16 990 0 16 9 271MAGHREBAIL 418 857 35,92% 150 453 137 010 10 617 0 24 060MediCapital 22 943 100,00% 22 943 82 956 -60 013Equity MethodBDM 464 151 27,38% 127 085 102 205 3 588 28 468ACMAR 50 147 20,00% 10 029 10 000 28CFM 142 575 33,33% 47 520 38 420 9 100TOTAL 8 713 457 7 846 643 818 091 18 497 7 047 064 In Thousand MAD FROM AGGREGATED TO CONSOLIDATED SHAREHOLDERS' EQUITY AS OF DECEMEBR 31st , 2006(cont'd) Consolidated Consolidated list Dividends Dividends Reserves capital changes distributed received conversion spread BMCE 6 198 514 -299 822 53 729 0Full ConsolidationBMCE CAPITAL 17 665 -16 000BMCE CAPITAL BOURSE 59 230 -1 224BMCE CAPITAL GESTION 31 126SALAFIN 158 887 -19 418BMCE INTERNATIONALE 39 809MAROC FACTORING -23 209LCB 1 745 71MAGHREBAIL 12 682 -11 125MediCapitalEquity MethodBDM 14 935 -3 528 9 937ACMAR -1 345CFM 4 781 -2 067TOTAL 6 514 820 0 -353 184 53 729 10 008 In Thousand MAD FROM AGGREGATED TO CONSOLIDATED SHAREHOLDERS' EQUITY AS OF DECEMEBR 31st , 2006(cont'd) Consolidated shareholders' Earnings Consolidated equity before Earnings conversion capital Others earning 2006 spread in 2006 BMCE 3 463 5 955 884 699 591 6 655 475Full ConsolidationBMCE CAPITAL 1 665 26 438 28 103BMCE CAPITAL BOURSE 1 58 007 10 099 68 106BMCE CAPITAL GESTION 1 31 127 21 164 52 291SALAFIN -453 139 017 66 863 205 880BMCE INTERNATIONALE 297 40 106 7 949 64 48 119MAROC FACTORING 52 -23 157 1 332 -21 824LCB -23 1 793 7 419 58 9 271MAGHREBAIL 3 025 4 581 19 479 24 060MediCapital -12 215 -47 798 -60 013Equity MethodBDM -6 861 14 483 13 873 112 28 468ACMAR 98 -1 247 1 275 28CFM 1 2 716 6 384 9 100TOTAL -399 6 212 760 834 069 234 7 047 064 In Thousand MAD FINANCING & GUARANTEE COMMITTMENTS AS OF DECEMEBR 31st , 2006 2006 2005FINANCING AND GUARANTEE COMMITMENTS GIVEN 12 344 386 16 379 110Financing commitments on behalf of credit institutionsand equivalent 37 985 340 518Import letters of creditPayment acceptances or commitmentsOpening of confirmed creditSubstitution commitments on issuing securitiesIrrevocable leasing commitments -Other financing commitments given 37 985 340 518Financing commitments on behalf of customers 5 058 687 8 069 809Import letters of credit 3 245 270 5 915 775Payment acceptances or commitments 628 751 578 948Opening of confirmed lettersSubstitution commitments on issuing of securitiesIrrevocable leasing commitments -Other financing commitments given 1 184 666 1 575 086Guarantee commitments for credit institutions andequivalent 2 075 608 2 730 804Confirmed export letters of credit 154 384 520 450Payment acceptances or commitments 65 553 119 737Credit guarantees given - 15 988Other security, endorsements and guarantees given 1 855 671 2 074 629Non performing commitmentsGuarantee commitments for customers 5 172 106 5 237 979Credits guarantees given - 987 006Security and guarantees given on behalf of the publicadministration 3 140 453 3 011 924Other security and guarantee given 2 031 653 1 239 049Non performing commitmentsFINANCING AND GUARANTEE COMMITMENTS RECEIVED 2 162 492 2 012 144Financing commitments received from credit institutions& equivalents - 172 144Opening of confirmed creditSubstitution commitments on issuing securitiesOther financing commitments received - 172 144Guarantee commitments received from credit institutions 2 130 644 1 381 872& equivalentsCredits guarantees 1 036 720 531 102Other guarantees received 1 093 924 850 770Guarantee commitments received from the Government andvarious guarantees bodies 31 848 458 128Credits guarantees 31 848 32 465Other guarantees received - 425 663 In Thousand MAD FORWARD EXCHANGE TRANSACTIONS AND COMMITMENTS ON DERVIVATIVES AS OF DECEMEBR31st , 2006 Hedging operations Other transaction Paris main Branch 2006 2005 2006 2005FORWARD EXCHANGE OPERATIONS 6 527 744 5 671 607 88 436 640 220Foreign currencies to be received 1 456 512 390 058 70 950 622 734Foreign currencies to be delivered 2 945 787 2 595 510 17 486 17 486Dirhams to be received 1 901 233 2 383 129 -Dirhams to be delivered 224 212 302 910 Including foreign currency financial swapsCOMMITMENTS ON DERIVATIVES 2 146 169 52 716 875 301 1 338 862Commitments on regulated fixed-income markets - - 875 301 1 338 862Commitments on OTC fixed-income markets - 50 000Commitments on regulated foreign exchange market - -Commitments on OTC foreign exchange markets 2 146 169 2 716Commitments on regulated markets in other - -instrumentsCommitments on OTC markets in other instruments - - In Thousand MAD NB : Established on an individual basis BREAKDOWN OF TOTAL ASSETS, LIABILITIES, AND OFF BALANCE SHEET ITEMS IN FOREIGNCURRENCIES AS OF DECEMEBR 31st , 2006 BALANCE SHEET 2006ASSETS 11 881 859Cash at bank, central bank, treasury and postal office cheques and postal office 219 458chequesAmounts due from credit institutions & Equivalent 4 406 587Customer receivables 3 141 278Trading securities, securities held for sale & investment securities 1 161 205Other assets 1 618 238Equity interests & similar assets 1 040 828Subordinated receivables -Assets leased under finance leasing or standard lease agreementsTangible and intangible fixed assets 294 265LIABILITIES 6 022 555Central bank, the treasury and post office chequesAmounts due to credit institutions and equivalent 2 675 350Customer deposits 3 198 204Debt securities issuedOther liabilities 149 001Subsidies, public funds and special guarantee fundsOFF-BALANCE SHEET 3 870 794Commitments given 3 827 013Commitments received 43 781 In Thousand MAD INCOME FROM TITLE INSTRUMENTS AS OF DECEMEBR 31st , 2006 TYPE OF SECURITIES INCOME RECEIVEDSecurities held for sale 19 077Equity interests 98 794Holding in associated companies 14 026Assets 10 678TOTAL 142 575 In Thousand MAD FEES AS OF DECEMEBR 31st , 2006 FEES AMOUNT Fees received 739 806On transactions with credit institutions 4 169On transactions with customers 251 711On exchange transactions 90 878Concerning operations on the primary securities markets 1 460On derivativesOn transactions on securities under management and custody 41 182On means of payment 78 961On consulting and assistance 27 124On sales of insurance products 3 491On other services 240 830Fees paid 66 926On transactions with credit institutions 1 940On transactions with customers 814On exchange transactions 21 207Concerning operations on the primary securities market 11 641On derivativesOn transactions on securities under management and custody 8 075On means of payment 14 892On consulting and assistanceOn sales of insurance productsOn other services 8 357 In Thousand MAD EARNINGS FROM MARKET OPERATIONS AS OF DECEMEBR 31st , 2006 REVENUES 1 035 846Gains on transactions securities -Capital gains on disposals of marketable securities 713 608Provision write-backs on depreciation of marketable securities 27 031Gains on derivatives 90 501Gains on exchange transactions 204 706EXPENSES 245 228Losses on transaction securitiesCapital losses on disposals of marketable securities 52 762Provisions for depreciation of marketable securities -Losses on derivatives 98 678Losses on exchange transactions 93 788 In Thousand MAD GENERAL OPERATING EXPENSES AS OF DECEMEBR 31st , 2006 EXPENSES 2006 2005Staff Expenses 1 055 029 939 287 EXPENSES 2006 2005Taxes 41 402 37 642 EXPENSES 2006 2005External expenses 801 029 694 783 EXPENSES 2006 2005Allowances for depreciation and provision for intangible and 222 194 162 624intangible fixed assets In Thousand MAD OTHER EVENUES & EXPENSES AS OF DECEMEBR 31st , 2006 REVENUES & EXPENSES 2006 2005Other banking revenues and expenses 767 424 475 174Other banking revenues and expenses 1 145 762 822 185Other banking expenses 378 338 347 011 NON-BANKING OPERATING REVENUES AND EXPENSES 2006 2005Produits et charges d'exploitation non bancaire 160 948 223 277Produits d'exploitation non bancaire 173 129 265 381Charges d'exploitation non bancaire 12 181 42 104 OTHER EXPENSES 2006 2005Allowances for provisions and losses on irrecoverable loans 806 005 747 242 OTHER REVENUES 2006 2005Provision write-backs and recoveries on amortised debts 480 677 380 918 In Thousand MAD SECURITIES CONSOLIDTAED BY THE EQUITY METHOD AS OF DECEMEBR 31st , 2006 SECURITIES % OF HOLDING NET BOOK VALUE VALUE OF THE EQUITY COMPANYACMAR 20.00% 10 001 10 029BDM 27.38% 102 205 127 085CASA FINANCE MARKET 33.33% 38 420 47 520TOTAL 150 626 184 634 In Thousand MAD CONSOLIDATED GOODWILL ON ACQUISITIONS AS OF DECEMEBR 31st , 2006 Gross Deprec Deprec Deprec Deprec Deprec Deprec Deprec Deprec Deprec Net value 1998 1999 2000 2001 2002 2003 2004 2005 2006 Value Maghrebail 35 509 -3 551 -3 551 -3 551 -3 551 -3 551 -4 484 -3 551 -3 551 -3 551 2 618Securities Maghrebail 10 212 - - -1 140 -902 -1 021 -1 021 -1 021 -1 021 -1 021 3 064Securities Maghrebail 783 -78 -78 -78 -78 -78 393Securities Maghrebail 1 543 -154 -154 -154 -154 928Securities Maghrebail 4 017 -402 3 615Securities BDM 6 052 -221 -989 -604 -604 -606 3 028Securities BDM 623 -63 560Securities Capital 4 362 -436 -436 -436 -436 2 618Bourse Securities BMCE Madrid 1 570 -157 -157 -157 -157 -157 628Intl Securities BMCE Madrid 1 164 -116 1 048Intl Securities AXIS Capital 3 496 0 0 0 -350 -349 2 797 Securities Financial 2 296 0 0 0 -230 -2 066 0SecuritiesTotal 65 835 -3 551 -3 551 -4 691 -4 610 -5 028 -7 320 -6 001 -8 001 -8 999 21 297 In Thousand MAD DEBT SECURITIES ISSUED AS OF DECEMEBR 31st , 2006 Of which Non-amortised Details amounts of issue and repayments premiums Amounts Securities Issuing date Maturity Unit face Nominal Method of in Related Other date value rate repayment MAD companies affiliatesFinance 06/20/2006 06/20/2011 100 5.00% IN FINE 10 000companiesnotes (CFN)CFN 01/26/2005 01/26/2008 100 4.50% IN FINE 10 000CFN 02/01/2005 02/01/2010 100 5.15% IN FINE 10 000CFN 02/28/2005 02/28/2010 100 5.15% IN FINE 10 000CFN 04/25/2005 04/25/2009 100 4.80% IN FINE 15 000CFN 06/06/2006 06/06/2009 100 4.62% IN FINE 15 000CFN 12/31/2004 09/14/2007 100 3.94% IN FINE 20 000CFN 01/26/2005 01/26/2010 100 5.20% IN FINE 20 000CFN 06/06/2006 06/06/2009 100 4.12% IN FINE 20 000CFN 05/26/2006 05/26/2009 100 4.12% IN FINE 25 000CFN 12/31/2004 06/11/2007 100 3.97% IN FINE 27 000CFN 12/31/2004 11/26/2009 100 5.35% IN FINE 39 500CFN 12/31/2004 09/14/2007 100 5% IN FINE 42 500CFN 01/26/2005 01/26/2008 100 3.96% IN FINE 50 000CFN 06/20/2006 06/20/2010 100 4% IN FINE 50 000CFN 10/27/2006 10/27/2010 100 4.01% IN FINE 55 000CFN 06/20/2006 06/20/2011 100 4.62% IN FINE 100 000CFN 07/04/2006 07/04/2011 100 4.62% IN FINE 120 000CFN 05/26/2006 05/26/2011 4.62% IN FINE 155 000Bonds 03/01/2006 5.14% 130 000Bonds 03/01/2006 5.15% 120 000Accrued 32 734interestsTOTAL 1 076 734 In Thousand MAD NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 Main valuation and presentation rules for consolidated financial statements BMCE Bank's consolidated financial statements for the financial year 2006 arepresented in accordance with the provisions of the new "Accounting Standards forCredit Institutions" (PCEC). They contain the financial statements of BMCE Bank and those of the mainMoroccan and overseas subsidiaries constituting BMCE Bank Group. The financialstatements of the Moroccan subsidiaries are presented according to the rules andvaluation methods of the PCEC. The accounts of the overseas subsidiaries BMCEINTERNATIONAL, the BANQUE DU DEVELOPPEMENT DU MALI, LA CONGOLAISE DE BANQUE andMEDICAPITAL BANK have been prepared according to the accounting rules of thecountry of origin; the necessary restatements and reclassifications have beencarried out in order that they conform with the principles of BMCE BANK Group(cf. presentation notes of the individual financial statements). Principles and methods of consolidation The individual annual financial statements of BMCE BANK (aggregate accountsgrouping together the financial statements for the Domestic Activity and thoseof the Paris and Banque Off Shore branches) and subsidiaries controlled by it orover which the Group exerts notable influence form the basis of preparation ofthe consolidated financial statements. The applied consolidation methods are as follows: Full consolidation: This method is applied to financial companies over which the Bank has exclusivecontrol, including those undertaking banking related activities. Exclusive control of a subsidiary is determined by the power to direct financialand operational policies. It results; • Either from holding directly or indirectly the majority of voting rights in the subsidiary; • Or from having a majority in the number of members of the subsidiary's administrative, management or supervisory bodies, for two successive financial years; The control is presumed where BMCE BANK holds more than 40% of the subsidiary'svoting rights and no other partner holds directly on indirectly a percentagegreater than its own, in accordance with the thresholds set out by the GenerallyAccepted Accounting Principles in Morocco (CGNC); • Or from the power to exert a dominant influence over the subsidiary by virtue of a contract or statutory clauses. A dominant influence exists when the Group has the possibility to use or direct the use of the assets, liabilities or off-balance sheet items in the same way as for subsidiaries under its exclusive control. Equity method Companies in which the Group exerts a notable influence, namely equity interestsin which the percentage of control ranges from 20% to 40% are accounted forunder the equity method. Notable influence is the power to take part infinancial and operational policies of a subsidiary without controlling it. Certain equity interests, meeting the criteria defined above but whoseimportance in relation to the consolidated accounts is not significant, have notbeen consolidated (cf. Note 2). Foreign currency translation Balance sheet and off-balance sheet items of BMCE INTERNATIONAL, LA CONGOLAISEDE BANQUE and MEDICAPITAL BANK are translated on the basis of exchange ratesprevailing at the closing date. Items of income and expenditure are translatedon the basis of average exchange rates during the period. Shareholders' equityis valued at its historical value. Translation differences between the closingrate and historical value are recorded in a translation reserve in consolidatedshareholders' equity. Main restatements The main restatements made in preparing the consolidated accounts concern thefollowing items : Goodwill Goodwill, recorded as an asset or liability, represents the difference, notposted to a balance sheet item, between the purchase consideration and share ofthe fair value of net assets at the date of purchase of the consolidatedsecurities. Goodwill is amortised over a fixed period determined by the natureof the activity of the acquired company, the assumptions made and the objectivesset at the time of acquisition. Amortisation is spread out over a 10-year period. Leasing and rental commitments This heading includes leasing operations, leases with an option to purchase orequivalent and simple rental. Rental operations equivalent to leases are thoseoperations intended to finance goods for which the lessor does not have theintention of maintaining ownership at the end of the lease. Leasing operations, leases with an option to purchase or equivalent arerecorded in the consolidated balance sheet as finance leases, that is, for thetotal amount of rents receivable, less interest included in these rents. Theseamounts are substituted for those which are determined according to fiscal rulesand the hidden reserve is recorded in the consolidated reserves for an amountnet of deferred taxes. Accrued interest included in the rents due is recorded in a receivables accountas a contra to the income statement entry. The method of provisioning forleasing operations and equivalent is identical to that for receivables fromcredit institutions and customers. Fixed properties acquired by lease: BMCE fixed properties acquired by lease have been subjected to a restatementconsisting on the activation of those assets on the balance sheet, while makingthe distinction between non depreciable elements (lands) and depreciableelements (constructions). These corrections have led to a restatement on theincome statement, distinguishing the financial cost from the allowances fordepreciation. Impacts on the net profit and the shareholder's equity are notedby the means of the consolidated accounting entries while taking into accountthe fiscal impact (deferred taxation). Elimination of intra-group entries All operations between Group companies consolidated under the full consolidationmethod and which have a material impact on or off the balance sheet and on theincome statement have been eliminated. These eliminations concern two types of operation: - Those which have an impact on consolidated income or consolidated reserves (in particular dividends between Group companies), - And those which have no bearing (reciprocal accounts of the balance sheet and income statement). Elimination of fiscal provisions For each consolidated subsidiary, all the provisions designed to reduce the taxburden (deferred taxation operations) have been eliminated, for example,provisions for investment, for staff housing and derogatory depreciation. Taxation - Current taxation: The standard rate of corporate tax for credit institutions is 39.6% on incomeearned in Morocco with the exception of BMCE Bank's subsidiary, BMCE BanqueOff-shore, which was tax-exempt until December 31st, 2001. Since January 1st,2002, this entity has been subject to taxation as applied to offshore banks withtax exemption for the first USD 25,000 of income. The Paris Branch is subject to corporate taxation according to the rules andrates applicable in France where the standard rate is 33.33%. Concerning thetaxation of other subsidiaries, besides insurance companies for which the rateis identical to that for the banking sector, the standard rate of corporate taxis 35%. It should be noted that for MEDICAPITAL BANK, subject to the U.K. GAAP, theapplicable taxation rules are in accordance with the requirements ofconsolidation. - Deferred taxation Deferred taxation is stated in the accounts to account for timing differences inthe carrying amount and the value for tax purposes of certain balance sheetitems. Deferred taxes are recognised using the liability method by which achange to tax rates will result in an amendment to deferred taxes stated inprevious years. The corresponding effect is recorded in the income statement asan increase or decrease in the deferred tax expense. NOTE 2 Scope of consolidation at December 31st 2006 The consolidated accounts at December 31st, 2006 include the individual accountsof BMCE BANK and those of its most significant subsidiaries. The following eightsubsidiaries are exclusively controlled by BMCE Bank : • MAROC FACTORING • SALAFIN • MAGHREBAIL • BMCE CAPITAL • BMCE INTERNATIONAL • BMCE CAPITAL BOURSE • BMCE CAPITAL GESTION • LA CONGOLAISE DE BANQUE • MEDICAPITAL BANK BMCE Bank likewise exerts notable influence on the following three subsidiaries: • Casablanca Finance Market • ACMAR • Banque de Developpement du Mali This scope of consolidation, which includes all the companies which meet theabove criteria, excludes not-for-profit real estate companies in that thefinancing granted to them recorded in the Group's balance sheet, reflects thereality of the risks assumed and is more representative of the Group's financialactivity. Changes to the scope of consolidation: MEDICAPITAL BANK, the London-based subsidiary of the Bank, has been included inthe scope of consolidation. Excluded from the consolidation list The following four subsidiaries are also excluded from the scope ofconsolidation for the reasons outlined below: • DOCUPRINT • STE CONSULTITRES • EUROCHEQUE MAROC. • MARTCO For the following reasons: - DOCUPRINT: Wholly-owned subsidiary. The share in the net worth is below the threshold fixedfor its consolidation under the consolidation method. - STE CONSULTITRES: 50%-owned subsidiary. The share in the net worth is below the threshold fixedfor its consolidation under the consolidation method. - EUROCHEQUE MAROC: 28.72%-owned subsidiary. The share in the net worth is below the threshold fixedfor its consolidation under the consolidation method. - MARTCO: 20%-owned subsidiary. The net book value of this subsidiary is nil. 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